Frustration

Question 1

What is frustration in contract law?

Answer 1

. Frustration is when an unforeseen event, not the fault of either party, makes performance of the contract impossible, illegal, or radically different.

Question 2

Case where subject matter was destroyed (impossible)?

What other way impossible 4

Answer 2

Taylor v Caldwell – Music hall burned down before event. Contract was frustrated.

.. one party dies

Subject matters unavailable

There’s a risk of the contract not being able to be performed completely 

Question 3

Case where performance became illegal?

Answer 3

Fibrosa v Fairbairn – War made trading with Poland illegal. Contract was frustrated.

Question 4

Case where performance became fundamentally different?

Answer 4

Krell v Henry – Flat hired to watch coronation, which was cancelled. Frustrated due to loss of purpose

Question 5

Case where contract wasn’t frustrated despite cancellation?

Answer 5

Herne Bay v Hutton – Boat trip still had some purpose (naval review), so not frustrated.

Question 6

Limits on frustration? Cases

Answer 6

1. Self-induced frustration (Maritime v Ocean)
   
   2. Foreseeable events (Amalgamated v John Walker)
   3. Contract provides for the event

Question 7

What Act deals with financial consequences of frustration?

Answer 7

Law Reform (Frustrated Contracts) Act 1943.

Question 8

What does the Law Reform Act 1943 allow?3 consequences

Answer 8

• Recover money already paid
• Cancel future payments
• Courts may award expenses or compensation for benefits received