Frustration

Subdecks (1)

Cards (33)

  • What happened in Taylor v Caldwell?
    C agreed to hire music hall. Six days before the date, hall was destroyed in fire
  • What was the ratio in Taylor v Caldwell?
    the contract had ended because it had become impossible to perform
  • When will a contract be frustrated?
    makes the performance of the contract:
    1. impossible
    2. illegal, or
    3. radically different
  • What happens to a frustrated contract?
    the contract automatically comes to an end without imposing liability on the party who is unable to perform its contractual obligations
  • What two situations show that performance becomes impossible?
    1. the subject matter may be destroyed (Taylor v Caldwell)
    2. In a contract for services, one of the parties could become unavailable (Robinson v Davison)
  • What situation results in the performance becoming illegal?
    a change in the law makes performing the contract illegal (Fibrosa v Fairbairn)
  • What happened in Fibrosa v Fairbairn?
    the outbreak of war meant that it became illegal to trade with the enemy. This included occupied countries like Poland
  • What does it mean when performance becomes radically different?
    if the event destroys the main purpose of the contract for both parties, the contract may be frustrated.
  • What two cases are used for 'radically different'?
    1. Krell v Henry
    2. Herne Bay Steamboat v Hutton
  • What happened in Krell v Henry?
    D agreed to hire a room to view King's coronation. Coronation was then cancelled
  • Why was the contract in Krell v Henry frustrated?
    The event was the main purpose of the contract for both parties
  • What happened in Herne Bay Steamboat v Hutton?
    D hired a boat to see the King review his fleet of ships as part of the coronation celebrations
  • Why was the contract in Herne Bay Steamboat v Hutton not frustrated?
    It was still possible to view the ships. All that was missing was the king's presence.
  • What are the 4 limits on frustration?
    1. "Force Majeure" clause
    2. No frustration if contract has simply become less profitable or more difficult to perform
    3. event was foreseeable
    4. self induced frustration
  • What is a force majeure clause?
    a clause which allows a party to suspend or terminate its obligations under the contract in certain situations
  • Give a case for less profitable or more difficult to complete
    Davis Contractors v Fareham
  • What happened in Davis Contractor v Fareham?
    C agreed to build houses for D. C faced a shortage of workers and materials so incurred additional costs. The contract was not frustrated
  • What happened in Amalgamated Investment v John Walker and Sons?
    C agreed to buy an old building for redevelopment after receiving assurances the building was not listed. The next day, the property became listed.
  • Explain self induced frustration
    A contract will not be frustrated if the event was within the control of one of the parties (The Super Servant 2)
  • What happened in The Super Servant 2?
    Contract for moving an oil rig was to be carried out by D using one of his two ships. One of them sank. The contract had not been frustrated as D could still use the other ship
  • What is the effect of frustration?
    to discharge the contract automatically at the moment of the frustrating event. Each party is excused from future obligations under the contract