Frustration

• Frustration is an event which prevents performance of the contract but is beyond the control of either party.

  Taylor v Caldwell
• Three elements of frustration:

  1. Event occurred after formation of contract
  2. Event makes performance impossible or radically different
  3. Event was beyond control
• Frustrating events include:

  1. Destruction of subject matter
  2. Unavailability of other party
  3. Outbreak of war
  4. Subsequent illegality
  5. Commercial sterilisation
• Taylor v Caldwell: Destruction of subject matter
• Robinson v Davidson: Unavailability of the other party.
• Metro Water Board v Dick Kerr: Outbreak of war
• Re Shipton Anderson: Performance would be illegal.
• Krell v Henry: Commercial sterilisation
• The courts will not recognised self-induced frustration.

  Maritime National Fish v Ocean Trawlers
• The courts will not recognise frustration if the contract is merely more burdensome to perform.

  Davis Ltd Contractors v Fareham
• The courts won’t recognise frustration if there is a foreseeable risk.

  Amalgamated Investment v John Walker