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Subject: �gӭը��: nancychow@hkpro.com.hk

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�gӭը��: nancychow@hkpro.com.hk

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Date Posted: 08:35:16 10/19/01 Fri

�gӭը��: nancychow@hkpro.com.hk
obligation that the thing undertaken would,if performed, be a different thing from that contracted for.'Lord Radcliffe.
-Supervening illegality-if a change in the law makes the contract illegal ,it will be frustrated. This most often happens when war is declared.
-Performance made pointless-Krell v Henry60, Herne Steam Boat Co v Hutton61.
11.4.2 Limits to frustrations
-If the frustrating event happens before the contract is entered into, the action will lie in mistake rather than frustration.
-If the contract itself provides for what will happen for a potentially frustrating event, the contract will prevail.E.g. the usual provision in contracts for the sale of a house that the buyer will insure it between contract and conveyance.
-If the frustrating event is one which the parties foresaw, or could have foreseen, the courts will be less likely to apply the doctrine of frustration. This does not apply to the outbreak of war.
-If the frustrating event was the fault of one of the parties, the court will not apply the doctrine: Maritime National Fish Ltd. V Ocean Trawlers Ltd62.
11.4.3Effects of Frustration
The contract is automatically terminated from the moment the frustrating event occured,i.e.the contract is discharged. However, it is not void ab initio,so acts under the contract which happened before the frustrating event can continue to have significance. The common law position was basically to let the loss lie where it fell, but because this led to injustice, the law Reform (Frustrated contracts) Act 1943 was passes to modify the position.

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