due date the supplier informs the buyer that they are definitely unable to
supply, this would be anticipatory breach, and the buyer could sue
immediately to recover any costs and find another source for his goods.
Anticipatory breach arose in the following case.
Frustration
Frustration arises when some event occurs, during the lifetime of a
contract, at the fault of neither party, which makes the contract impossible,
illegal, or radically different from that originally undertaken. It typically
occurs where some natural disaster outside the control of the parties means
that one party is unable to fulfil obligations under the contract, and is then
claimed as an alternative to a claim of breach.
At one time obligations within a contract were viewed as absolute, so a
party was responsible for total performance or was held in breach, whatever
the circumstances. This strict approach is seen in the following
seventeenth-century case.
Courts later began to take a less harsh view of contractual obligations,
bearing in mind the reality commercial transactions, and in the leading
classic case of Taylor v Caldwell frustration was held as a fairer solution
than a finding of breach.
216 Contract law
Hochster v De La Tour (1853)
A contract of employment was formed for a courier for a summer
holiday season. The courier was informed that he would not be needed
before the date on which he was due to begin work. He sued before the
starting date, and recovered damages, which were needed to support
him during the time when he would have been employed.Paradine v Jane (1647)
Enemies of the king prevented a tenant from entering property, but rent
was nevertheless payable on the property despite not being able to use it.Taylor v Caldwell (1863)
A music hall and gardens were hired for a concert, but the hall caught
fire and burnt down before the performance. The contract was held to
be frustrated, as it was now impossible to carry it out, but this was
through the fault of neither party.