Frustration of purpose, in law, is a defense to enforcement of a contract. Frustration of purpose occurs when an unforeseen event undermines a party's principal purpose for entering into a contract such that the performance of the contract is radically different from performance of the contract that was originally contemplated by both parties, and both parties knew of the principal purpose at the time the contract was made. Despite frequently arising as a result of government action, any third party or even nature can frustrate a contracting party's primary purpose for entering into the contract. The concept is also called commercial frustration.
Krell v Henry [1903] 2 KB 740 is an English case which sets forth the doctrine of frustration of purpose in contract law. It is one of a group of cases, known as the "coronation cases", which arose from events surrounding the coronation of King Edward VII and Queen Alexandra in 1902.
Paradine v Jane [1647] EWHC KB J5 is an English contract law case which established absolute liability for contractual debts.
Fibrosa Spolka Akcyjna v Fairbairn Lawson Combe Barbour Ltd[1942] UKHL 4 is a leading House of Lords decision on the doctrine of frustration in English contract law.
The Life Assurance Act 1774 was an Act of Parliament of the Parliament of Great Britain, which received the Royal Assent on 20 April 1774. The Act prevented the abuse of the life insurance system to evade gambling laws. It was extended to Ireland by the Life Insurance (Ireland) Act 1866, and is still in force. Prior to the Act, it was legally possible for any person to take out life insurance on any other person, regardless of whether or not the beneficiary of the policy had any legitimate interest in the person whose life was insured. As such, the system of life insurance provided a legal loophole for a form of gambling: an insurance policy could be taken out on an unrelated third party, stipulating whether or not they would die before a set date, and relying on chance to determine if the "insurer" or "policy-holder" would profit by this event.
D & C Builders Ltd v Rees [1965] EWCA Civ 3 is a leading English contract law case on the issue of part payment of debt, estoppel, duress and just accord and satisfaction.
The Gaming Act 1845 was an Act of the Parliament of the United Kingdom. The Act's principal provision was to deem a wager unenforceable as a legal contract. The Act received royal assent on 8 August 1845. Sections 17 and 18, though amended, remained in force until 1 September 2007.
English contract law is the body of law that regulates legally binding agreements in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth, from membership in the European Union, continuing membership in Unidroit, and to a lesser extent the United States. Any agreement that is enforceable in court is a contract. A contract is a voluntary obligation, contrasting to the duty to not violate others rights in tort or unjust enrichment. English law places a high value on ensuring people have truly consented to the deals that bind them in court, so long as they comply with statutory and human rights.
The law of mistake comprises a group of separate rules in English contract law. If the law deems a mistake to be sufficiently grave, then a contract entered into on the grounds of the mistake may be void. A mistake is an incorrect understanding by one or more parties to a contract. There are essentially three types of mistakes in contract,
In English law, implied terms are default rules for contracts on points where the terms which contracting parties expressly choose are silent, or mandatory rules which operate to override terms that the parties may have themselves chosen. The purpose of implied terms is often to supplement a contractual agreement in the interest of making the deal effective for the purpose of business, to achieve fairness between the parties or to relieve hardship.
City and Westminster Properties (1934) Ltd v Mudd [1959] Ch 129 is an English contract law case, regarding the parol evidence rule. It illustrates one of the large exceptions, that a written document is not deemed to be exhaustive of the parties intentions when there is clear evidence of a collateral contract. It shows that even evidence from outside a written agreement may contradict evidence inside it.
Chandler v Webster [1904], 1 KB 493 is an English contract law case concerning frustration. It is one of several coronation cases which appeared in the courts after King Edward VII fell ill and his coronation was postponed.
Frustration is an English contract law doctrine that acts as a device to set aside contracts where an unforeseen event either renders contractual obligations impossible, or radically changes the party's principal purpose for entering into the contract. Historically, there had been no way of setting aside an impossible contract after formation; it was not until 1863, and the case of Taylor v Caldwell, that the beginnings of the doctrine of frustration were established. Whilst the doctrine has seen expansion from its inception, it is still narrow in application; Lord Roskill stated that "the doctrine is not lightly to be invoked to relieve contracting parties of the normal consequences of imprudent commercial bargains."
Herne Bay Steamboat Co v Hutton [1903] 2 KB 683 is a case on the subject of frustration of purpose. It is one of a group of cases arising out of the same event, known as the coronation cases.
The Law Reform Act 1943 is an act of the Parliament of the United Kingdom which establishes the rights and liabilities of parties involved in frustrated contracts. It amends previous common law rules on the complete or partial return of pre-payments, where a contract is deemed to be frustrated. It additionally introduces the concept that valuable benefits, other than financial benefits, may be returned upon frustration. It applies only to contracts governed by English law.
Capacity in English law refers to the ability of a contracting party to enter into legally binding relations. If a party does not have the capacity to do so, then subsequent contracts may be invalid; however, in the interests of certainty, there is a prima facie presumption that both parties hold the capacity to contract. Those who contract without a full knowledge of the relevant subject matter, or those who are illiterate or unfamiliar with the English language, will not often be released from their bargains.
Davis Contractors Ltd v Fareham Urban District Council [1956] UKHL 3 is an English contract law case, concerning the frustration of an agreement.
Great Peace Shipping Ltd v Tsavliris (International) Ltd [2002] EWCA Civ 1407 is a case in English contract law which investigates when a common mistake within a contractual agreement will render it void.
Errington v Wood[1951] EWCA Civ 2 is an English contract law and English land law judicial decision of the Court of Appeal concerning agreement and the right to specific performance of an assurance that is relied on.
Solle v Butcher [1950] 1 KB 671 is an English contract law case, concerning the right to have a contract declared voidable in equity. Denning LJ reaffirmed a class of "equitable mistakes" in his judgment, which enabled a claimant to avoid a contract. Denning LJ said,
... a contract will be set aside if the mistake of the one party has been induced by a material misrepresentation of the other, even though it was not fraudulent or fundamental; or if one party, knowing that the other is mistaken about the terms of an offer, or the identity of the person by whom it is made, lets him remain under his delusion and concludes a contract on the mistaken terms instead of pointing out the mistake.... A contract is also liable in equity to be set aside if the parties were under a common misapprehension either as to facts or as to their relative and respective rights, provided that the misapprehension was fundamental and that the party seeking to set it aside was not himself at fault.
