FRUSTRATION
(May 2023, ZA, Q.5)
Q. In January 2023 Karl booked a holiday at Adventure Camp in May 2023 for £3,000.
Adventure Camp is a venue which specialises in ‘extreme sports’ offering a variety of activities
including cliff diving. Karl paid a £1,000 deposit in January with the remaining £2,000 to be paid
in two instalments; £1,000 on 1 March and £1,000 upon arrival. On 5 March Karl discovered that
cliff diving is no longer an available activity and so he calls to cancel the holiday. Adventure
Camp tell Karl that all the other activities are still available and that they will keep his place open
and expect full payment. Karl is very upset but decides he will still go on the holiday.
Two days before Karl’s holiday is due to start, Adventure Camp is closed down by health
inspectors due to an outbreak of food poisoning. It is later discovered that the outbreak was
caused by contaminated milk used in the manufacturing process of the ice cream that is sold at
Adventure Camp.
Advise Karl.
How, if at all, would your answer differ if the food poisoning was caused by Adventure Camp’s
chef storing the butter uncovered on the same plate as raw meat?
(May 2023, ZB, Q.4)
Q. Alan, a law student, bought a ticket to watch Liverpool FC play as he is a great fan of their
star striker, Norman Conquest. A week before the match, Liverpool FC announce that Norman
will not be playing in the game as he has been ‘sold’ to a rival football club. Alan immediately
rings Liverpool FC and explains that he wants his money back as the contract to buy a ticket is
now frustrated. Liverpool FC refuse to refund any money and tell Alan that his seat will be
available for him.
The night before the game, the football ground suffers a fire caused by a lightning strike and the
game is cancelled. Alan is especially disappointed as he has spent £100 on a specially made
banner saying ‘Norman Conquest, Liverpool Legend’.
Advise Alan about any claim he may have against Liverpool FC.
How, if at all, would your answer differ if the fire was caused by the Liverpool FC caretaker
carelessly throwing a lit cigarette away, which set light to accumulated rubbish he had failed to
clear?
(October 2022, ZA, Q.3)
Q. Derek, a “media personality”, was recently divorced from Carlotta, a well- known musician.
Derek decides to hold a party to celebrate her divorce. Derek contracts with Tosh who specializes
in organizing events for wealthy clients. Under their agreement, Derek agrees to pay Tosh
£200,000 in exchange for Tosh securing the hire of Uppingham Palace on Saturday 8th May for
the party in the Great Hall and for organizing the food and entertainment. Derek pays Tosh
£50,000 immediately with the balance payable on Monday 10th June.
Tosh agrees to pay Lady Elizabeth, the owner of Uppingham Palace, £50,000 for the exclusive
use of Uppingham Palace on 7th, 8th and 9th May. Lady Elizabeth spends £500 employing a
cleaner to thoroughly clean the main rooms on Thursday 6th May.
On Wednesday 5th May Tosh spends £1,000 on floral decorations which are delivered to the
Great Hall. On Friday 7th May, Tosh celebrates his birthday with his family in the Old Library at
Uppingham Palace. However, that evening there is a huge storm that causes the castle moat to
flood all the main castle rooms and makes them unsafe and unusable for many months. Lady
Elizabeth telephones Tosh at 6AM on 8th May with the bad news and Tosh immediately informs
Derek who says she will “not pay a penny and expects the return of her £50,000” immediately.
Discuss.
(October 2022, ZB, Q.8)
Q. What factors may prevent an event making contractual performance impossible, more
burdensome or pointless from being a frustrating event?
(May 2022, ZA, Q.3)
Q. a) ‘A mere increase in costs will never constitute frustration.’ Discuss.
b) Fiona, a famous businesswoman, contracts with Grot plc, to give a speech at their annual
dinner for a fee of £10,000, half of it payable on contracting and the other half on the day of the
speech. Fiona also asks for a case of Krug champagne which Grot agree to send to her the week
before the event.
The venue for the dinner fails its safety inspection the day before the dinner is due to take place.
Grot plc made the first payment of £5,000 to Fiona but forgot to send the champagne. Later they
refuse to pay the second instalment or to send the champagne. Grot have ordered £1,000 worth of
flowers for the tables which they cannot avoid paying for.
Advise Grot as to their rights and liabilities.
(October 2021, ZA, Q.6)
Q. ‘The Law Reform (Frustrated Contracts) Act 1943 clarified the law of frustration and
balanced the rights of the parties in a fair way.’
Critically evaluate the statement above.
(October 2021, ZB, Q.7)
Q. (a) Explain the operation of S 1(3) of the Law Reform (Frustrated Contracts) Act 1943.
UL21/0979
(b) On 1st August 2020 Woodenboats agree to build a yacht for Naomi to be delivered on 1st
August 2021. The contract specifies that the hull must be made from Burma Teak. Woodenboats
explain that there is no stock of this timber in the UK and so they will need to order it from
Burma.
Advise Woodenboats if the contract is frustrated in the following alternative circumstances:
(i) in September 2020 there are extensive forest fires in Burma. As a result, the price of Burma
Teak increases by 300%;
(ii) in October 2020 the UK government bans the importation of any teak from Burma in order to
preserve endangered rainforest trees.
(October 2020, ZA, Q.7)
Q. (a)Explain the concept of “self-induced” frustration by reference to decided cases.
(b) In January Miranda books a cruise on the Halcyon, a new cruise ship, for £5,000 for August
the same year. Miranda pays a deposit of £2,000 on booking. Advise Miranda in each of the
following alternative situations:
(i) On 30th July the Halcyon is destroyed by fire. The owners had spent £50 per passenger
valeting the cabins ready for the following week’s cruise.
(ii) Following unexpected hostilities in the Middle East in February the cost of ship’s fuel
increases by 300%. The Halycyon’s owners tell Miranda that the contract for the cruise ‘has been
frustrated’.
(October 2020, ZB, Q.6)
Q. Discuss the rights and liabilities of Chasers, a road transport company in each of the
following, alternative situations:
(a) Chasers contract with Fasteze to deliver 100 bags of potatoes to Fasteze’s warehouse. The
contract provides that Chasers must ensure that the boxes are correctly stored in the loading bays
at the back of the warehouse. Dirk, Chasers’ delivery driver, is in a hurry and deposits all of the
boxes at the entrance of the warehouse. Fasteze reject the goods and refuse to pay Chasers the
contract price of £1,500.
(b) Chasers contract with Fasteze to deliver 100 boxes of pharmaceutical products which need to
be stored in the loading bays at the back of the warehouse since this area is refrigerated. Dirk,
Chasers’ delivery driver, is in a hurry and deposits all of the boxes at the entrance of the
warehouse. It is a hot day and the pharmaceutical products deteriorate in the sun. Fasteze reject
the goods and refuse to pay Chasers the contract price of £1,500.
(c) Chasers contract with Fasteze to deliver 100 bags of potatoes to their warehouse. Fasteze
clearly stipulate that delivery must take place by 8pm on 3rd March. Dirk takes emergency sick
leave and Chasers have to find another driver. This means that the delivery is made two hours
late. Fasteze reject the goods and refuse to pay Chasers the contract price of £1,500.
(May 2020, ZA, Q.4)
Q. Increasingly warm temperatures in the UK mean that a rare breed of bird, the purple-tailed
cuckoo, has recently landed in London and chosen Hyde Park as a nesting site. Arthur has seized
on the opportunity to make some money and starts to sell tickets for his “Purple-Tailed Tour”.
This tour comprises an initial stop-off at a reception centre, where ticket holders are taught about
the breeding and nesting habits of the purple- tailed cuckoo. Ticket holders are then taken by bus
to Hyde Park where they are given exclusive access to a viewing point from where they are able
to observe the bird. A final element of the “Purple-Tailed Tour” is a bus journey past some of the
key tourist sights of central London.
In order to provide his “Purple-Tailed Tour”, Arthur contracts with Regatta Receptions for a
three-month hire of one of their reception areas for the first stop-off. The rate is £5,000, £2,500
of which is paid immediately, and the remaining £2,500 is due at the end of the hire period. In
preparation, Regatta Receptions spend £500 on getting the air conditioning fixed in their
reception centre.
Arthur also contracts with Bobby Buses to hire a bus and driver each day of the week, to
transport ticket holders from the reception centre to Hyde Park, and then past the sights of
London. The cost for this is £500 per week.
Unfortunately, just before the first tour commences, unprecedented geological movements
beneath Hyde Park render the surrounding area unsafe. London authorities prohibit all visitors
within a three-mile radius of the Park, thereby preventing access to the viewing point.
Arthur tells Regatta Receptions that he wants his £2,500 returned. He also informs Bobby Buses
that he will not be going ahead with the bus hire. Bobby Buses instruct the driver to go ahead
with the contract and to arrive at the “Purple-Tailed Tour’s” departure point each day. Bobby
Buses demand the full hire fee.
Advise Arthur.
(May 2020, ZB, Q.7)
Q. ‘The law on frustration is said to be concerned with promoting commercial certainty.
However, the courts have so much discretion to decide what constitutes a frustrating event that
commercial certainty would be better secured if loss was allowed to lie where it falls.’
Discuss.
(October 2019, ZAB, Q.5)
Q. (a) With reference to relevant cases, critically examine the concept of ‘self-induced’
frustration.
(b) On 1 January Gill Bates, a computer tycoon, contracts with Classic Boats to build a motor
yacht for her for delivery on 1 July at a cost of £6million. The specification states that the interior
must be made from ‘Miramar Teak’ and that the price is payable in equal instalments on 1
January and 1 May.
Gill pays the first instalment as required by the contract. On 1 March, a month before Classic
Boats were due to begin construction of the interior, the UK government bans the importation of
teak from Miramar and none is available at timber merchants in the UK. Classic Boats have
spent £250,000 on varnish which was specially made to cover Miramar Teak.
Discuss.
(May 2019, ZA, Q.5)
Q. ‘English contract law defines the type of event which amounts to a frustrating event far too
narrowly. The courts should be more ready to relieve a party from their contractual obligations
following events which make the contract more onerous to perform.’
Discuss.
