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contract law🌻 (*terms info may not be correct)*
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Cards (25)
Taylor v Caldwell
:
Contract
ended when a
concert hall
burnt down the day before the concert, making performance
impossible
, known as
frustration
View source
Robinson
v
Davison
:
Contract
for
services
where one party could become
unavailable
(e.g.,
piano
player falling ill on the day of a
concert
), leading to
frustration
as no one is at
fault
and the
contract
cannot be
performed
View source
What can frustrate a
contract
:
Performance becomes
impossible
Performance becomes
illegal
Performance becomes
radically different
from what both parties originally
intended
View source
Fibrosa
v
Fairbairn
:
Law changes suddenly
, making it
illegal
to
fulfill
the
contract
(e.g.,
outbreak
of
war
making it
illegal
to
trade
with the
enemy
)
View source
Krell
v
Henry
: Event (
coronation cancellation
) was the main purpose of the contract, rendering it
pointless
to carry out
View source
Limits on frustration:
Contract becoming
less
profitable or more
difficult
to complete is
NOT
a reason for frustration
"
Force majeure
/ act of
God
" clauses
do not
lead to frustration as parties have
agreed
on what happens in such events
View source
Consequences of frustration:
No more
payment
,
work
, or
obligations
; the
contract
is
discharged
by
frustration
Recovery
of
money
under
S.1
(
2
) of the
Law Reform
(
Frustrated Contracts
) Act
1943
if
money
was
paid
in
advance
View source
Gamerco SA
v
ICM
/
Fair Warning
:
Money
is returned but the
stadium
keeps some to
cover expenses
and
tickets
as it was not their
fault
either
View source
S.1(3)
of the Act allows for
benefits
other than
money
to be
recovered
, such as
work done
or something of
value
that
isn't money
View source
BP v
Hunt
(No.2):
Hunt
was
overpaid
, so
BP
can recover from
Hunt
, receiving a "
just sum
" due to the
overpayment
, and
legal costs
are also covered
View source
Frustration in
contract
law occurs when something
unexpected
happens that prevents
performance
, not due to anyone's
fault
View source
Taylor
v
Caldwell
example: a music hall burnt down, making it impossible to have a concert when the venue doesn't exist
View source
Conditions for frustration:
Impossible
: e.g.,
Taylor
/
Robinson
v
Davison
- can't perform if
sick
(entitles to a
refund
)
Illegal
: e.g.,
Fibrosa
v
Fairbairn
- refusing to supply
Nazis
due to
legality
Radical difference
: when the
contract
can be carried out but is so
different
from what was
agreed
upon
View source
Not
frustration
if there's a "
force majeure
" clause for events like
war
or
terrorism
, which must be included in the
contract
View source
Foreseeable
events that should have been
anticipated
won't end a contract;
insurance
should be bought to cover such
risks
View source
Self-induced frustration
, where the
frustration
is within one's
control
, doesn't count as a
valid reason
for
contract frustration
View source
Frustrated Contracts Act
1943
:
S.1 (
2
): Allows recovery of
money
paid in
advance
if the
contract
is
frustrated
S.1 (
3
):
Deals
with valuable
benefits
received but not
paid
for,
entitling
a "
just sum
" to be
decided
by the
court
View source
Taylor
v
Caldwell
example: music hall burnt down, can't have a
concert
when the
venue
doesn't exist (
impossible
situation)
View source
Frustration
in
contracts
can occur when the situation becomes
impossible
,
illegal
, or
radically different
from what was
agreed
upon
View source
Examples of frustration:
Impossible
:
Taylor
/
Robinson
v
Davison
- can't perform if
sick
(entitles to a
refund
)
Illegal
:
Fibrosa
v
Fairbairn
- refused to supply the Nazis as it was against the
law
Radical difference
:
Krell
v
Henry
- unable to use the
rented space
for the
intended purpose
due to
unforeseen circumstances
View source
War is considered an
unforeseeable
event that can lead to
contract frustration
View source
Not considered
frustration
if there is a "
force majeure
" clause for events like
war
or
terrorism
, which must be included in the contract
View source
Foreseeable
events that should have been
anticipated
won't end a contract;
insurance
should be bought to cover such
risks
View source
Self-induced frustration
, where the
frustration
is within one's
control
, doesn't count as a
valid reason
for
contract frustration
View source
Frustrated Contracts Act
1943
:
S.1
(
2
): Allows
recovery
of
money
paid in
advance
if the
contract
is
frustrated
S.1
(
3
):
Deals
with
situations
where a valuable benefit has been
received
but not
paid
for, requiring a "
just sum
" to be
paid
View source
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