Sunday 26 April 2015

Frustration of Contract

What is Frustration of Contract? 


  • An unexpected event out of contracting parties’ control
  • Neither parties fault Neither contemplated the supervening event 
  • New circumstances would make it unjust for both parties from their original contract


Example - Taylor v Caldwell (1862)



  • Taylor hired music hall for a concert but burned down before concert day (unexpected event out of contracting parties' control)
  • Taylor claimed damages against owner (Caldwell)
  • Court’s decision: destruction hall means contract was frustrated and therefore Taylor was able to claim for his compensation





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