Notesale: Turn your study into money

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CONTRACT – Discharge (lecture 17) - FRUSTRATION
Frustration is used as a defence for a claim for breach
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Contract
ended by operation of the law, all future obligations discharged
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IMPOSSIBILITY

CAN LEASES BE FRUSTRATED?

Unavailability of a thing or person necessary
to perform the contract
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In National
Carriers v Panalpina, it was again decidedit
was not frustrated but in principle it could be,
in rare circumstances
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1
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Unavailability of thing – A matter of degree
- Jackson v Union Marine Insurance Co; FA
Tamplin v Anglo-Mexican; Bank Line v
Arthur Capel; Edwinton Commercial
Cooperation Tsavrilis Russ, The Sea Angel
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As the purpose
of the contract had been achieved, the court
held that no frustration occurred, although it
was stated that had there been much of the
purpose still to achieve this could have
potentially frustrated the contract
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Unavailablity of person – incapacity
(Morgan v Manser); death (Stubbs v Holywell
Railway Co)
SUPERVENING ILLEGALITY - Fibrosa
v Fairbairn
*A contract to do what has become illegal to
do cannot be legally enforceable – Denny,
Mott, Dickson v Fraser
FRUSTRATION OF PURPOSE/NONOCCURRENCE OF EVENT
*Must be common purpose of both parties
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*S1(2) – Money paid before frustrating event is
recoverable AND money payable before frustrating
event ceases to be payable
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Must be tangible
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Burden of proof
on other party – Joseph Constantine
Steamship line v Imperial Smelting
Corporation
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The less that an
event is foreseeable, the more likely it is to
lead on to frustration – The Sea Angel
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The doctrine is “not lightly to be
invoked” as per Lord Roskill in The Nema
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Partial failure of consideration –
Chandler v Webster
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Only applies now where Act
excluded
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*S2(4) – Multiple obligations eg leases
*S2(5) – Contracts excluded from act eg carriage
of goods by sea insurance contracts

 



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