Question 1

Parties can choose to displace the provisions of the Law Reforms (Frustrated Contracts) Act 1943?

Accepted Answer

Parties can agree to exclude or modify the provisions of the Law Reforms (Frustrated Contracts) Act 1943 in their contract.

Question 2

For what reason does Lord Loreburn (in Davis Contractors v Fareham UDC)reject the implied term as a basis for discharging frustrated contracts?

Accepted Answer

Lord Loreburn rejects the implied term as a basis for discharging frustrated contracts because it is illogical to imply a term in relation to events that are patently outside the contemplation of the parties. He believes that the parties cannot be held responsible for something that they did not contemplate or intend to happen.

Question 3

In Krell v Henry what event was postponed to cause the contract to be frustrated?

Accepted Answer

The contract in Krell v Henry was frustrated because the event that was the subject matter of the contract, which was the King's Coronation, was postponed.

Question 4

What criticisms are made of the Law Reform (Frustrated Contracts) Act 1943?

Accepted Answer

The answer of What criticisms are made of the Law...

Question 5

George, a UK citizen, contracts with the government of Iraq for the supply of oil-drilling equipement. After the UK goes to war with Iraq the contract cannot be performed. Would you say that:

Accepted Answer

Subsequent illegality, as in the case of a declaration of war that renders the contract unenforceable, will serve to frustrate the contract as in Fibrosa Spolka Akcyjna v Fairbairn Lawson Combe Barbour [1942] 2 All ER 122, Stone par 13.3.4

Question 6

Which of the following needs to be lacking for a contract to be frustrated?

Accepted Answer

The lack of agreement between the parties as to the consequences of an event is a defining element of the doctrine of frustration, as the parties are free to allocate risks for foreseeable events. Stone par 13.4.2

Question 7

Is a contract frustrated when:

Accepted Answer

All purposes of a contract need to lapse for it to be frustrated. Contrast the cases of Krell v Henry [1903] 2 KB 740 and Herne Bay Steam Boat Co v Hutton. [1903] 2 KB 683, Stone par 13.3.3

Question 8

In which of the following cases was the contract frustrated?

Accepted Answer

Taylor v Caldwell (1863) 3 B. & S. 826 establishes the notion that the destruction of the subject matter of a contract will frustrate the contract. Stone par 13.3.1

Question 9

Adam runs a removal company that owns two trucks. He contracts with Eve for the removal of her furniture from her flat. On the day of the move, one of Adam's trucks has broken down and the other is engaged in another job. Would the contract:

Accepted Answer

The contract would not be frustrated as self-induced unavailability to perform does not lead to frustration as in J. Ravriitzen A S v Wijsmuller B V, the Super Servant Two (1990) 1 Lloyds Rep 1, Stone par 13.4.1

Question 10

A <lang="fr"> force majeure clause is:

Accepted Answer

A <lang="fr"> force majeure clause allocates the burden arising from liability to perform contract obligations when performance is prevented by an event or circumstance beyond the parties' control, Stone par 13.4.2

Question 11

In Paradine v Jane the court found the contract to be:

Accepted Answer

Paradine v Jane (1647) Aleyn 26 was seen as a particularly harsh case that paved the way for the development of the doctrine of frustration. Stone par 13.2.1

Question 12

In a contract for personal services incapacity of the worker will:

Accepted Answer

Incapacity of someone contracted to perform a personal service will frustrate the contract as in Condor v Barron Knights [1966] 1 WLR 87, Stone par 13.3.2

Question 13

If a contract is frustrated, will a party get back money already paid?

Accepted Answer

According to the provisions of the Law Reform (Frustrated Contracts) Act 1943 (if there is no contrary intention of the parties in the contract) even if there has been no total failure of consideration the claimant will be able to retrieve funds paid in a frustrated contract minus deductions for expenses incurred by the other party. Stone par 13.6

Question 14

In which case was the Spanish government's closure of a stadium for safety reasons held to frustrate a contract to hold a pop concert there?

Accepted Answer

The case of Gamerco SA v ICM/Fair Warning Agency (1995)was the case where the Spanish government's closure of a stadium for safety reasons held to frustrate a contract to hold a pop concert Stone 13.6.1

Question 15

S 1(3) of the Law Reform (Frustrated Contracts) Act 1943 covers what area of frustration?

Accepted Answer

S 1(3) of the Law Reform (Frustrated Contracts) Act 1943 covers compensation for a valuable benefit where frustration of contract has occurred.

Quiz 13: Frustration