Frustration Q&A
These are the Contract Law Frustration Q&A Questions and Answers. You will find a lot of examples available for the kinds of questions you could get on your coursework or examination. The answers are given discuss a problem question that looks at Frustration through Q&A. There is a mix of essay questions and problem questions with answers to guide you. These notes will demonstrate to students how to approach legal essays and how to provide straightforward advice.
Problem Question
In January Derek decided to take his family to the Lake District for their summer holiday. He agreed to hire Rose Cottage from Lakeland Cottages for the month of August. One of the attractions of the cottage was that the garden ran down to a river and Lakeland Cottages agreed to organise a fishing licence for Derek, a keen angler, for the duration of the holiday.
Derek had two very young children and Lakeland Cottages agreed to put a fence at the bottom of the garden to prevent the children accessing the river.
The total cost of the hire (including fishing licence) was £2,500. Derek paid £200 immediately and agreed to pay a further £200 on 1 August and the balance by 15 August.
Advise Derek as to his rights and remedies in EACH of the following ALTERNATIVE situations.
(a) On 7 August the cottage was struck by lightning and rendered uninhabitable. Fortunately, no one was injured, but many of the family’s personal items were destroyed. Derek had not yet paid the £200 due on 1 August. Lakeland Cottages had spent £400 installing the fence and a further £100 organising the fishing licence. Lakeland Cottages are claiming the full amount of the hire charge from Derek. Derek feels that he should not have to pay and also wants to know if he can recover the £200 he paid in January.
(b) When Derek arrived at the cottage he found that Lakeland Cottages had not organised the fishing licence as agreed. Their representative informed him that Lakeland Cottages had only been issued with five licences for their properties on that stretch of the river and that these had been allocated to other customers. Derek was disappointed not to be able to fish during his holiday. Derek and his family stayed at the cottage for the whole of August and paid Lakeland Cottages the full amount due. He wants to know whether he can recover any compensation from Lakeland Cottages.
Short Questions
Do you agree that the doctrine of frustration is to do with justice as between the parties? Support your views with reference to cases/judicial views.
Is it ever possible to define what is just or unjust in the context of frustration? Are there any examples or judicial dicta?
To what extent “juridical theories” shape the outcomes of court cases concerning frustration? Are there any discerning patterns at all?
Discuss the House of Lords decision in National Carriers v Panalpina (Northern) Limited 1981.
Do you think the Law Reform (Frustrated Contracts) Act 1934 which concerns remedies is relevant to the discussion above?
What are the Five theories of the basis of the doctrine of frustration have were put forward in Panalpina?
