ILLEGALITY, FRUSTRATION AND FORCE MAJEURE ESSAY

Question 1

paragraph one

Answer 1

Pacta Illicita: This Latin term refers to agreements that are illegal or impossible to perform when the contract is made. Such contracts are void and cannot be enforced by the courts.
Illegality in Contracts: If an agreement involves committing a crime or a wrongful act (delict), it is considered illegal and unenforceable. Similarly, immoral contracts, such as those encouraging immoral conduct, cannot be enforced.
In Pari Delicto: If both parties are equally at fault in an illegal contract, the court typically will not intervene to assist either party. However, if one party is less at fault or innocent, they may still be entitled to compensation, especially if they have already partially performed their part of the contract. This concept is based on unjustified enrichment.

Question 2

case; paragraph one

Answer 2

James B Fraser v Denny Mott and Dickson (1944)
Facts: This case involved a supply contract that became illegal due to new war regulations during World War II.
Outcome: The court held that the contract became void due to supervening illegality when the war regulations made the contract’s performance unlawful. This case highlights how contracts can become unenforceable if they later become illegal due to changing circumstances or laws.

Question 3

paragraph two

Answer 3

Frustration happens when something unexpected makes it impossible to carry out a contract — through no fault of either party.
The event must be unforeseen and make the contract impossible, illegal, or radically different from what was agreed.
declare of war or concert venue shuts down before concert.

Question 4

case; paragraph two

Answer 4

Conder v The Scottish Rugby Union (2002)
Conder had a contract to supply catering services at Murrayfield Stadium.
The contract was for multiple rugby matches, including the Six Nations Championship.
Due to the foot-and-mouth disease outbreak in the UK, several events were cancelled by the authorities to prevent the spread of disease.

Question 5

paragraph three

Answer 5

force majeure and frustration differ as it Often suspends the contract or allows rescheduling or cancellation, depending on what the clause says. but there must be a clause in the contract whereas, frustration doesn’t need a clause in the contract.
force majeure is more flexible as it
Choose what kinds of events will trigger it.
Decide in advance what happens next — like pausing the contract, changing parts of it, or continuing as usual once the problem passes.

Question 6

case; paragraph three

Answer 6

⚖️ Lebean v Kilmarnock Engineering Co Ltd (1973) SLT
A contract was made for the sale of machinery.
The contract included a force majeure clause allowing cancellation if performance was prevented by strikes, lockouts, or other uncontrollable events.
The seller failed to deliver on time, citing a strike at a supplier’s factory as the reason.