Frustration =
A party bound by contractual promise, in circumstances where they are prevented from keeping a promise because of an unforeseeable intervening event would be relived of strict obligation
Taylor V Cadwell
Commercial purpose ceased to exist, parties excused from performance
CTI group v Transclear SA
Event must not be the fault of either party
Davis Contractors v Faseham UDC
Performance as envisioned became impossible
Types of Frustarting events (3)
1 makes performance impossible
2 makes peformance illegal
3 makes contract commercially sterilised
Jackson v union marine insurance co LTD
Subject matter becomes unavailable during performance
Robinson V Davidson
Frustrating event may be unavailablity due to illness
Ceder v The Baron Knights
Even if only a risk of unavailability
Morgan V manser
Any good reason for not being able to perform
Pioneer shipping Ltd v BTP tioxide LTD
Unavoidable delay
Metropolitan waterboard v Dick Kerr co LTD
Outbreak of war = frustration
Denny Mott and Dickson LTD v James B Fraser Co LTD
Law change made performance illegal
Reshipton Anderson co and Harrison Bros
Outbreak of war meant a change of law which led to frustration
Krell v Henry
Commercial purpose has changed = frustration
Harne Bay Steamboat co V Hutton
All commercial purpose must be destroyed
Limitation - Martime national Fish LTD v Oceon Trawlers LTD
Self induced frustration (within control)
Limitation - Davis Contractors Ltd v Faseham
Just makes contract more onerous to perform
Limitation - Amalgumental Investmant + property v John Walker and sons
Foreseeable risk could’ve been contemplated at the time
Limitation - Fibrosa Spolka Akeyjna v Fairbairn Lawson Combe Barbour
Provisions made in the contracts for frustrating events
Limitation - Paradine v Jane
Absolute undertaking to perform
Remedies - Law reform act 1947
1) Recovery of money paid in advance
2) recovery for work already completed
3) Reward for part peformance