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LIMITATIONS ON THE
DOCTRINE
FRUSTRATION
Law of Contract
What is the frustration?
•The legal termination of a
contract due to unforeseen
circumstances.
Examples for frustration:
• Robinson v Davidson
The contract was for the artist to perform on the stage but she fell
ill before the performance. Then the court held that her personal
incapacity frustrated the contract.
• Avery v Bowden
A parties made a charter party contract before the
commencement of the performance of the contract the
government prohibited shipping due to the war condition court
held that this government action made it is possible to perform
charter party contract and therefore the contract was frustrated.
Situation where frustration cannot be
pleaded.
• Where the contract is more different or expensive to
perform.
• Where some purpose of the contract can still be
achieved.
• Where the parties have foreseen the frustrative event
• Self induce frustration.
Where the contract is more difficult or expensive to
perform
• If the contract become more difficult or expensive to perform
that does not make the contract frustrated.
• Tsakiroglou v Noblee.
The contract was to ship good from the court of Sudan to
Hamburg. Contract did not specify any shipping root. When the
Suez Canal was closed for shipping due to the war condition
frustration was pleaded. Claiming that it was no longer possible
to ship the goods. It was also claim that the alternative shipping
root prove the cape of goods hope was too expensive. The court
held the contract not discharged by frustrated. It had become
more expensive to perform but it could still be performed.
Where some purpose of the contract can still
be achieved.
• Herne Bay Steam Boat Co v Hutton
The contract was to hire a boat to a day to watch the kings
review of his navel fleet anchored down river Thames and also
for a days excursion down river Thames. When the King fell ill
and the coronation celebrations were cancelled including the
review. Frustration was pleaded. Court held that the contract was
not frustrated on account of the cancellation of the king’s review
part of the purpose can still be achieved. The party can still go
down the river Thames to view the navel fleet and for an
excursion as planned.
Where the parties have foreseen the frustrative
event
• Jackson v Union Marine
It was a charted party contract which had a clause which said that
“the ship will sale with all possible dispatch damages and
accidents of navigations actions.” in effect a possibility of
navigations accident has been foreseen by the parties and the ship
owner has taken upon himself and obligation to perform his side
of the party despite such an event. The ship ran a ground and was
several damage requiring 7 months of repair. The court allow
frustration to be pleaded. Despite the parties providing was such
an event in the contract. the consequences was much more
serious than what the parties anticipated.
Self induce frustration
• Maritime National Fish v Ocean Trawlers (1935)
The claimant have four vessels of their own that they used for
shipping then hired another vessel from the defendant and apply
for 5 permits to operate the 5 vessels. They were issued per
permits which they used to operate 3 of their vessels. They return
the hired vessel claiming. That the contract was frustrated due to
non available of a permit to operate that vessel. Court held the
contract was discharged by frustration it was a case of self induce
frustration.
Thank you

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Contract law presentation 2

  • 2. What is the frustration? •The legal termination of a contract due to unforeseen circumstances.
  • 3. Examples for frustration: • Robinson v Davidson The contract was for the artist to perform on the stage but she fell ill before the performance. Then the court held that her personal incapacity frustrated the contract. • Avery v Bowden A parties made a charter party contract before the commencement of the performance of the contract the government prohibited shipping due to the war condition court held that this government action made it is possible to perform charter party contract and therefore the contract was frustrated.
  • 4. Situation where frustration cannot be pleaded. • Where the contract is more different or expensive to perform. • Where some purpose of the contract can still be achieved. • Where the parties have foreseen the frustrative event • Self induce frustration.
  • 5. Where the contract is more difficult or expensive to perform • If the contract become more difficult or expensive to perform that does not make the contract frustrated. • Tsakiroglou v Noblee. The contract was to ship good from the court of Sudan to Hamburg. Contract did not specify any shipping root. When the Suez Canal was closed for shipping due to the war condition frustration was pleaded. Claiming that it was no longer possible to ship the goods. It was also claim that the alternative shipping root prove the cape of goods hope was too expensive. The court held the contract not discharged by frustrated. It had become more expensive to perform but it could still be performed.
  • 6. Where some purpose of the contract can still be achieved. • Herne Bay Steam Boat Co v Hutton The contract was to hire a boat to a day to watch the kings review of his navel fleet anchored down river Thames and also for a days excursion down river Thames. When the King fell ill and the coronation celebrations were cancelled including the review. Frustration was pleaded. Court held that the contract was not frustrated on account of the cancellation of the king’s review part of the purpose can still be achieved. The party can still go down the river Thames to view the navel fleet and for an excursion as planned.
  • 7. Where the parties have foreseen the frustrative event • Jackson v Union Marine It was a charted party contract which had a clause which said that “the ship will sale with all possible dispatch damages and accidents of navigations actions.” in effect a possibility of navigations accident has been foreseen by the parties and the ship owner has taken upon himself and obligation to perform his side of the party despite such an event. The ship ran a ground and was several damage requiring 7 months of repair. The court allow frustration to be pleaded. Despite the parties providing was such an event in the contract. the consequences was much more serious than what the parties anticipated.
  • 8. Self induce frustration • Maritime National Fish v Ocean Trawlers (1935) The claimant have four vessels of their own that they used for shipping then hired another vessel from the defendant and apply for 5 permits to operate the 5 vessels. They were issued per permits which they used to operate 3 of their vessels. They return the hired vessel claiming. That the contract was frustrated due to non available of a permit to operate that vessel. Court held the contract was discharged by frustration it was a case of self induce frustration.