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Contract: Discharge of Contract

Frustration: impossibility, death and incapacity

  • 3 things to know
  • Components 2 and 3

Overview

Doctrine of frustration, rule before frustration was recognised and automatic effect of frustration.

What you need to know

Answer each one before you reveal it.

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Key term

What is the doctrine of frustration?

Numbers

What was the rule before frustration was recognised?

Numbers

Which case first recognised frustration?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is the doctrine of frustration?

    Model answer

    Frustration discharges a contract where an unforeseen event makes performance impossible or radically different. Neither party is at fault when frustration occurs.

  2. 2

    What was the rule before frustration was recognised?

    Model answer

    Paradine v Jane (1647) treated contractual obligations as absolute. A party remained bound even where events made performance impossible.

  3. 3

    Which case first recognised frustration?

    Model answer

    Taylor v Caldwell (1863) held that the destruction of a music hall by fire discharged the hire agreement. The contract rested on an implied condition that the hall would continue to exist.

  4. 4

    How does the destruction of the subject matter frustrate a contract?

    Model answer

    Destruction of the thing central to the contract makes performance impossible. The parties are then released from further obligations.

  5. 5

    How can unavailability of the subject matter frustrate a contract?

    Model answer

    Jackson v Union Marine Insurance (1874) held a charterparty frustrated when the ship ran aground. The delay for repairs was so long that the intended voyage could no longer take place.

  6. 6

    How does death frustrate a contract?

    Model answer

    Death discharges a contract for personal services. Personal performance becomes impossible when the person who was to perform dies.

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