Question

CONTRACT LAW:

Please Answer these questions as detailed as possible

5.   Which of the following involve frustrating events and which do not?

a.       A famous comedian dies just before he is due to appear on stage.

b.      A plumber is contracted to fit central heating in a house. He underestimates the days needed to complete the work and as a result, he will lose profit on the price agreed.

c.       A car I had contracted to buy is destroyed when an explosion sets fire to it.

d.      As a lecturer, I have contracted personally to take 15 students on a trip to court. An Act is passed requiring teaching and lecturing staff to take no more than 10 students per one member of staff on educational visits.

e.      In a contract to supply a Far Eastern state with machinery, one clause stipulates what happens in the event of war. In fact, war is declared after the making of the contract.

Answer 1

A contract may become frustrated where, post-contract creation, a change in circumstances occurs that makes the contract impossible to perform or become radically different.

a.       A famous comedian dies just before he is due to appear on stage

where the nature or terms of a contract require personal performance by the promisor, his death or incapacity puts an end to contract. A party to a contract is excused from performance if that person dies.

b.      A plumber is contracted to fit central heating in a house. He underestimates the days needed to complete the work and as a result, he will lose profit on the price

It is possible that the performance of a contract remains entirely possible, but owing to the non-occurrence of an event contemplated by both parties as the reason for the contract, the value of the performance is destroyed.The doctrine of frustration also applies concerning the cancellation of an expected event.

c.       A car I had contracted to buy is destroyed when an explosion sets fire to it.

The doctrine of impossibility applies with full force “where the actual and specific subject-matter of the contract has ceased to exist”

d.      As a lecturer, I have contracted personally to take 15 students on a trip to court. An Act is passed requiring teaching and lecturing staff to take no more than 10

A contract will frustrate “where circumstances arise which make the performance of the contract impossible in the manner and at the time contemplated

e.      In a contract to supply a Far Eastern state with machinery, one clause stipulates what happens in the event of war. In fact, war is declared after the making of the contract.

If the performance of a contract becomes impracticable or useless having regard to the object and purpose of the parties, then it must be held that the performance of the contract became impossible.