Frustration

Question 1

What is meant by a frustration?

Answer 1

Where completing the contract becomes impossible due to external events beyond the control and contemplation of the parties

Question 2

What are the three steps?

Answer 2

Identify the possible grounds for frustration
Identify the possible counter arguments for frustration
Apply the possible remedies

Question 3

Outline all stage 1 grounds for frustration

Answer 3

Impossibility of performance
Subsequent illegality
Radical change of circumstances

Question 4

Outline Impossibility of performance fully

Answer 4

The contract has become impossible to perform because the subject matter has been destroyed or made unavailable (Taylor v Caldwell)

or in personal services the person has become unavailable. (Robinson v Davidson)

Question 5

The contract has become impossible to perform because the subject matter has been destroyed or made unavailable

Answer 5

Taylor v Caldwell

Question 6

Robinson v Davidson

Answer 6

The contract has become impossible to perform because the person has become unavailable (in personal services)

Question 7

Taylor v Caldwell

Answer 7

The contract has become impossible to perform because the subject matter has been destroyed or made unavailable

Question 8

The contract has become impossible to perform because the person has become unavailable (in personal services)

Answer 8

Robinson v Davidson

Question 9

Outline subsequent illegality

Answer 9

If to perform the contract becomes an illegal act, the contract may become frustrated (Denny, Mott & Dickson Ltd)

Question 10

Denny, Mott & Dickson Ltd

Answer 10

If to perform the contract becomes an illegal act, the contract may become frustrated

Question 11

If to perform the contract becomes an illegal act, the contract may become frustrated

Answer 11

Denny, Mott & Dickson Ltd

Question 12

Outline a radical change of circumstances

Answer 12

The essential commercial purpose of the contract cannot be achieved (Krell v Henry)

Question 13

Krell v Henry

Answer 13

The essential commercial purpose of the contract cannot be achieved

Question 14

The essential commercial purpose of the contract cannot be achieved

Answer 14

Krell v Henry

Question 15

Outline stage 1 with all cases

Answer 15

Impossibility of performance - Taylor v Caldwell

Subsequent illegality - Denny, Mott & Dickson Ltd

Radical change of circumstances - Krell v Henry

Question 16

Outline all counter-arguments for staeg 2

Answer 16

Self-induced frustration
The contract becomes less profitable
The event being a foreseeable risk or the event was mentioned in the contract

Question 17

Outline self-induced frustration fully

Answer 17

Frustration will not apply if the frustrating event is within the control of one party (Maritime National Fish Ltd)

Question 18

Maritime National Fish Ltd

Answer 18

Frustration will not apply if the frustrating event is within the control of one party

Question 19

Davis Contractors Ltd

Answer 19

If a contract becomes less profitable or more difficult to complete, these are not grounds for frustration

Question 19

Frustration will not apply if the frustrating event is within the control of one party

Answer 19

Maritime National Fish Ltd

Question 20

Outline the contract becoming less profitable fully

Answer 20

If a contract becomes less profitable or more difficult to complete, these are not grounds for frustration (Davis Contractors Ltd)

Question 21

If a contract becomes less profitable or more difficult to complete, these are not grounds for frustration

Answer 21

Davis Contractors Ltd

Question 22

Outline the event being a foreseeable risk or the event was mentioned in the contract fully

Answer 22

If the event was a foreseeable risk or the event was mentioned in the contract fully (Amalgamated Investment)

Question 23

Amalgamated Investment

Answer 23

Outline the event being a foreseeable risk or the event was mentioned in the contract fully

Question 24

Outline the event being a foreseeable risk or the event was mentioned in the contract fully

Answer 24

Amalgamated Investment

Question 25

Outline stage 2 fully with all cases

Answer 25

Self-induced frustration - Maritime National Fish Ltd The contract becomes less profitable - Davis Contractors Ltd The event being a foreseeable risk or the event was mentioned in the contract - Amalgamated Investment

Question 26

Outline all of stage 3 (necessary)

Answer 26

Common law - the contract is automatically terminated and all future obligations are terminated Law Reform (Frustrated Contracts) Act 1943 s1: s1(1) - Money already paid is recoverable but money that is due under the contract is not payable

Question 27

State the act of parliament for the remedies

Answer 27

Law Reform (Frustrated Contracts) Act 1943 s1

Question 28

Law Reform (Frustrated Contracts) Act 1943 s1 in full

Answer 28

s1(1) - Money already paid is recoverable but money that is due under the contract is not payable s1(2) - The courts can use its discretion to order compensation to be paid for work done and expenses spent under the contract before the frustrating event s1(3) - The court may order compensation to be paid for any valuable benefit that one party may acquire under the frustrated contract

Question 29

s1(1) Law Reform (Frustrated Contracts) Act 1943

Answer 29

Money already paid is recoverable but money that is due under the contract is not payable

Question 30

Money already paid is recoverable but money that is due under the contract is not payable

Answer 30

s1(1) Law Reform (Frustrated Contracts) Act 1943

Question 31

s1(2) Law Reform (Frustrated Contracts) Act 1943

Answer 31

The courts can use its discretion to order compensation to be paid for work done and expenses spent under the contract before the frustrating event

Question 32

s1(3) Law Reform (Frustrated Contracts) Act 1943

Answer 32

The court may order compensation to be paid for any valuable benefit that one party may acquire under the frustrated contract

Question 32

The courts can use its discretion to order compensation to be paid for work done and expenses spent under the contract before the frustrating event

Answer 32

s1(2) Law Reform (Frustrated Contracts) Act 1943

Question 33

The court may order compensation to be paid for any valuable benefit that one party may acquire under the frustrated contract

Answer 33

s1(3) Law Reform (Frustrated Contracts) Act 1943