E-SEMINAR MASTER DOCUMENT Seminar Topic: Frustration Group Names: Bronwyn Sellick, Sam Moncur, Hannah Moore, Harriet Kennedy Date: 04/03/2019 (IDENTIFICATION OF ISSUES) The Legal issues in the scenario are: Frustration of contracts Frustration - used in the context of a contract that already exists and something happens once contract is formed that makes contract impossible, illegal or radically different to what was agreed. (EXAMINATION OF PRINCIPLES) The relevant and important principles and cases are: Davis Contractors Ltd v Fareham Urban District Council [1956] AC 696 - theory of construction Lord Radcliffe - 'frustration occurs whenever the law recognises that without default of either party a contractual obligation has become incapable of being performed because the circumstance in which performance is called for would render it a thing radically different from that which was undertaken by the contract' . The fact that the two parties expected that the work could be finished within eight months did not result in the contract being frustrated when it turned out that it could not be performed within the specified time. . It was still possible to perform the contract. Notcutt v Universal Equipment Co ltd [1986] 1 WLR 641 - causes of frustration - Illness/Death/Incapacity . Held that the contract was frustrated. . The heart attack suffered by the claimant meant that the contract could not be performed. Herne Bay Steamboat Co. v Hutton [1903] 2 KB 683 - causes of frustration - Non-occurrence of event/frustration of purpose · Hiring of a steamship. . The contract was not frustrated because the contract had not been deprived of its main commercial purpose as it was still possible to perform the days cruise. . The Naval Review was not the only commercial purpose of the contract. Krell v Henry [1903] 2 KB 740 - causes of frustration - Non-occurrence of event/frustration of purpose . Hiring of flat for purpose of viewing of coronation but the coronation was cancelled. . The contract was frustrated as cancellation of the procession deprived it of its commercial purpose. . The claimant's action for breach of contract was thus unsuccessful. Maritime National Fish Ltd v Ocean Trawlers Ltd [1935] AC 524 - Limits: Self- Induced Frustration
· Regarding hiring of fishing vessels. . The contract was not frustrated as the claimant had chosen to keep the three licences granted for himself rather than using one to fulfil his contractual obligation. . Therefore, he had induced the frustrating event and was therefore in breach of contract. Taylor & Caldwell [1863] 3 B & S 826 - origins of frustration - implied term · Hiring of music hall. . A week before the first concert was due to take place the music hall was destroyed by an accidental fire. . Claimant sued because the defendant had failed to provide the hall. . The contract had been frustrated as the fire meant the contract was impossible to perform. . Therefore, the claimant's claim failed. · Blackburn J stated: "The principle seems to us to be