Deck 13: Frustration

Question 1

The modern approach to frustration can be traced back to Davis Contractors v Fareham UDC.

Answer 1

False

Question 2

Which of the following are terms often used to describe the impact an event must have on a contract before it can be regarded as frustrated?

A) An event which makes performance 'commercially undesirable'
B) An event which makes performance 'impossible'
C) An event which makes the nature of the contract 'radically different'
D) An event which makes performance 'disadvantageous'

Answer 2

B,C

Question 3

To which of the following types of contract does the Law Reform (Frustrated Contracts) Act 1943 not apply?

A) Contracts for insurance
B) Contracts for the sale of an interest in land
C) Contracts for the carriage of goods by sea
D) Contracts for the sale of perishable goods

Answer 3

A,C

Question 4

What is the purpose of the doctrine of frustration?

Question 5

Why did the court in Paradine v Jane refuse to discharge the contract despite performance being impossible?

Question 6

Why did early cases of frustration think it correct to adopt an 'implied term' approach to the problems it posed? Why is this approach capable of criticism?

Question 7

To what extent can it be said that rather than implying terms and the like, in cases of frustration the real rule is simply to do what is fair to the parties in light of the circumstances?

Question 8

Has the law dealt fairly with cases of 'self-induced' frustration?

Question 9

What is a force majeure clause and what is its effect?

Question 10

To what extent can the frustrating event complained of in National Carriers Ltd v Panalpina (Northern) Ltd truly be said to rob the contract of any purpose?

Question 11

How does the Law Reform (Frustrated Contracts) Act 1943 modify the common law position as regards 'remedies' for frustration?

Question 12

In National Carriers Ltd v Panalpina (Northern) Ltd why was a contract for the ten year lease of a warehouse found to be frustrated?

A) Because the warehouse had been built without the correct planning permission
B) Because the warehouse no longer complied with regulations for the storage of flammable goods - the purpose for which it had been rented.
C) Because the warehouse was subject to an arson attack and repairs would take 18 months to complete
D) Because road works undertaken by the local council made access and so use of it impossible for a period of 18 months

Question 13

The judgment in Fibrosa Spolka Ackyjna v Fairbairn Lawson Combe Barbour Ltd is authority for what?

A) A contract that is frustrated as a result of the requisition of the goods as a result of war will be held to be frustrated
B) A contract which becomes one with an enemy alien will be considered to be frustrated
C) Contracts made with un-recognised nation states are automatically held frustrated
D) A contract made in peacetime with the armed forces can be discharged in the event of a declaration of war

Question 14

The contract in Herne Bay Steamboat Co. v Hutton concerns the hire of a boat to watch the arrival of an ocean liner.

Question 15

A contract will be frustrated where the thing that is to be done becomes illegal after the contract is made?

Question 16

The categories of events that can be regarded as 'frustrating' are closed.

Question 17

The Super Servant II demonstrates that a contract cannot be frustrated where one party seeks acts to make it unperformable?

Question 18

Like any other contract, a contract for land can also be frustrated?

Question 19

The effect of frustration is to render a contract void ab initio.

Question 20

The common law remedy for frustration has meant that obligations to pay for work done have been discharged because the work was not completed and so the promise to pay for it was a future one.

Question 21

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

Question 22

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

A) Because the law prohibits the implication of terms of this nature
B) Because it is illogical to imply a term in relation to events that are patently outside the contemplation of the parties
C) Because such a term would be contrary to public policy and would be destructive to parties' contract
D) Because there are statutory provisions which provide for all frustrated contracts and such an approach is contrary to that statute

Question 23

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

A) The Queen's funeral
B) The Queen's Coronation
C) The King's funeral
D) The King's Coronation

Question 24

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

Question 25

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:

A) George will be in breach of contract for not supplying the equipment
B) Iraq will still be liable to pay George
C) The contract will resume after the war ends
D) The contract has been frustrated

Question 26

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

A) A contractual provision that deals with the frustrating event
B) The ability to perform the contract
C) The availability of the product or service
D) The ability to pay for the product or service

Question 27

Is a contract frustrated when:

A) All purposes of the contract have failed?
B) The main purpose of the contract has failed?
C) Prices have changed drastically?
D) Performance has become inconvenient?

Question 28

In which of the following cases was the contract frustrated?

A) Taylor v Caldwell
B) Williams v Roffey
C) The Atlantic Baron
D) Herne Bay Steam Boat v Hutton

Question 29

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:

A) Be frustrated?
B) Continue as normal?
C) Be modified so that the move can take place another day?
D) Become void?

Question 30

A force majeure clause is:

A) Contractual provision on how to allocate risks in case of impossibility of performance
B) A list of events that will frustrate a contract
C) French for frustration
D) An automatic termination clause

Question 31

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

A) Frustrated
B) Subsisting
C) Breached
D) Rescinded

Question 32

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

A) Frustrate the contract
B) Delay the contract
C) Impose on the worker an obligation pay damages
D) Impose an obligation to hire another worker

Question 33

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

A) Yes
B) Yes, minus reductions for reasonable expenses
C) Only for total failure of consideration
D) No

Question 34

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?

A) Condor v Barron Knights (1966)
B) Gamerco SA v ICM/Fair Warning Agency (1995)
C) Bormarin AB v IMB Investments Ltd

Question 35

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

A) Compensation for expenses incurred
B) Self-induced frustration
C) The return of deposits paid prior to frustration
D) Compensation for a valuable benefit