frustratino

• Taylor v Caldwell: Contract ended when a concert hall burnt down the day before the concert, making performance impossible, known as frustration
• 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
• What can frustrate a contract:

  • Performance becomes impossible
  • Performance becomes illegal
  • Performance becomes radically different from what both parties originally intended
• 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)
• Krell v Henry: Event (coronation cancellation) was the main purpose of the contract, rendering it pointless to carry out
• 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
• 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
• 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
• 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
• 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
• Frustration in contract law occurs when something unexpected happens that prevents performance, not due to anyone's fault
• Taylor v Caldwell example: a music hall burnt down, making it impossible to have a concert when the venue doesn't exist
• 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
• Not frustration if there's a "force majeure" clause for events like war or terrorism, which must be included in the contract
• Foreseeable events that should have been anticipated won't end a contract; insurance should be bought to cover such risks
• Self-induced frustration, where the frustration is within one's control, doesn't count as a valid reason for contract frustration
• 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
• Taylor v Caldwell example: music hall burnt down, can't have a concert when the venue doesn't exist (impossible situation)
• Frustration in contracts can occur when the situation becomes impossible, illegal, or radically different from what was agreed upon
• 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
• War is considered an unforeseeable event that can lead to contract frustration
• Not considered frustration if there is a "force majeure" clause for events like war or terrorism, which must be included in the contract
• Foreseeable events that should have been anticipated won't end a contract; insurance should be bought to cover such risks
• Self-induced frustration, where the frustration is within one's control, doesn't count as a valid reason for contract frustration
• 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