Frustration

Question 1

5 ways frustration can occur

Answer 1

• Destruction of subject matter
• Act becomes illegal
• Government or local authority intervention
• Commercial purpose destroyed
• Death or unavailability

Question 2

Destruction of subject matter

Answer 2

Taylor v Caldwell- a booked music hall burned down frustrating the contract

Question 3

Act becomes illegal to perform

Answer 3

Avery v Bowden- An affirmed contract became illegal t perform due to a war breaking out and it becoming illegal to trade with russia

Question 4

Government or local authority intervention

Answer 4

Metropolitan water board v Dick Kerr- government ordered all work to stop for materials to go to the war effort

Question 5

Commercial purpose destroyed

Answer 5

Krell v Henry- hotel room booked for its view of the coronation, but coronation didnt happen thus the commercial purpose was destroyed

Question 6

Commercial purpose not destroyed

Answer 6

Herne bay v hutton- although the ship was booked for its view of the naval fleet, it was still held there was commercial purpose in the boatride itself

Question 7

Death or unavailability

Answer 7

Whincup v Hughes- 6 year apprenticeship was cut early after watchmaker died

Question 8

Contractual provision

Answer 8

This is whether the clause anticipated the frustrating event, unless it was meant to be all inclusive, it will not prevent the frustrating event

Question 9

Inconvenience/difficulty

Answer 9

Frustration cannot occur because the event was difficult or inconvenient
Davies contractors v Fareham urban district council- strikes, weather and material shortages couldnt equal frustration

Question 10

Foreseeability

Answer 10

Reasonably foreseeable events cannot frustrate a contract

Question 11

Self induced breach

Answer 11

A party cannot rely on frustration to discharge a contract if they caused the frustrating event

Question 12

Traditional effect of frustration

Answer 12

The contract was discharged immediately from the frustrating event and losses where they fall
- Any money paid before the frustrating event is non recoverable
- any money due prior to the event is to be paid
- money due after the frustrating event isnt payable

Question 13

Law reform (frustrated contracts) act 1943

Answer 13

Reformed the effects of frustration under s1(2)
- Any money paid before the event is recoverable
- Any money due prior to the event isnt payable
- Discretionary power to retain or recover expenses incurred before the frustration

Question 14

s1(3) Law reform (frustrated contracts) act 1943

Answer 14

Discretionary power to award a sum in respect of a valuable benefit recieved before the event
Gamerco v ICM/Fair warning- event organisers could only recover money used as an advance to promote theif frustrated concert