Frustration Model Answer

Question 1

A frustrating event… may… the contract. There are…

Answer 1

before the contract is completed, discharge (end), 3 types of frustrating event.

Question 2

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[IF RELEVANT]: Impossibility of performance where it is… (Nichol and Knight v Ashton Eldridge, Taylor v Caldwell).

Answer 2

impossible for the contract to be completed

Question 3

This will not apply if performance is possible just… (Davis v Fareham, Tsakiroglou v Noblee Thorl).

Answer 3

more difficult or expensive than anticipated

Question 4

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[IF RELEVANT]: A radical change in circumstances if the change relates to a… (Krell v Henry). The change must be… (Herne Bay v Hutton).

Answer 4

main purpose of the contract, sufficiently radical

Question 5

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[IF RELEVANT]: Illegality of the contract where… (Shipton Anderson, Denny v James Fraser).

Answer 5

a change in the law makes the contract illegal to perform

Question 6

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[IF RELEVANT]: There are other specific situations where…

Answer 6

frustration may be considered

Question 7

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[IF RELEVANT]:… (National Carriers v Panalpina).
AND/OR
[IF RELEVANT]: Contracts of… (Robinson v Davisdon).

Answer 7

Leases

employment

Question 8

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[IF RELEVANT]: Frustration will not apply where:
[IF RELEVANT]: It is… (the party who is trying to claim frustration) (Maritime National
Fish v Ocean Trawlers)
AND/OR
[IF RELEVANT]: There was a… (John Walker and Sons).

Answer 8

self-induced,
foreseeable risk of the frustrating event occurring

Question 9

[IF THERE HAS BEEN A FRUSTRATING EVENT WHERE MONEY HAS BEEN PAID]:
Under Section 1(2) of the Law Reform (Frustrated Contracts) Act 1943, money paid before the frustrating event… minus… (Gamerco v ICM).

Answer 9

is recoverable, the other parties ‘just’ expenses,

Question 10

This also includes paying in advance for goods and then…

Answer 10

having the order cancelled because new legislation has prohibited these goods

Question 11

When the contract is frustrated, there is no longer an obligation to…

Answer 11

pay the price agreed for goods
and services.

Question 12

[IF THERE HAS BEEN A FRUSTRATING EVENT WHERE NO MONEY HAS BEEN PAID]:
Under Section 1(3), where no money has been paid in advance, the value of any benefit gained by one party… The judge will… (Hunt v BP).

Answer 12

must be paid back to the other party, assess this

Question 13

In conclusion, [eg. the… OR: not frustrated and X will be in… ].

Answer 13

contract is frustrated, breach of contract if he does not supply the goods to Y