Frustration

  • Created by: huth0
  • Created on: 10-05-17 15:31
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  • Frustration
    • A change in circumstances which arises after the contract has been formed which means that performance of that contract cannot be completed because it would be impossible or illegal. Must not be self-induced
      • Davis Contractors v Fareham UDC - Build houses for local authority but a skill shortage as no workers - not frustration as it was inconvenient not impossible
    • Modern frustration suggests that a contract can be frustrated if parties did not agree that one of them will bear the risk of destruction to subject matter.
      • Taylor v Caldwell - Rent of surrey gardens for 4 days but surrey building burnt down - frustrated event
    • If the contract involves personal services and the party supplying the services dies or becomes ill/disabled then it can be frustration
      • Condor v The Barron Knights - 16 year old drummer medically advised to only play 3 nights/week and got fired. Sued for breach and lost but was frustration
    • Must not self-induce frustration
      • Maritime v Ocean Trawlers - rented a boat and did not nominate it for licence and claimed frustration
    • State of things essential to the contract fails to be in existence or non-occurrence of a central event
      • Krell v Henry - Ctt to hire apartment to watch King Edward coronation - main purpose destroyed and frustrated
        • Contrast Herne Bay Steamboat - still some purpose in performing
    • Contracts may be frustrated because they cannot be performed in the specific way provided for
      • Tsakiroglou - ship had to travel twice distance due to canal crisis = not frustrated just more difficult to perform
    • Force Majeure Clauses are terms which make a provision for the intervening event and says what will happen if such an event occurs
    • Parties are automatically discharged from their contractual obligations from the moment of the frustrating event, anything before must be fulfilled
      • Chandler v Webster - owed money before frustrating event

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