CHAR_A01.PDF, page 1-18 @ Normalize ( CHAR_A01.QXD )

Question 6

This question concerns the reason for the doctrine of frustration, and

focuses on the legal effects of it.

• Define frustration, explain why it is needed as a doctrine, and briefly
  examine the circumstances when it has arise in cases.


• Examine the effects in detail, using the provisions of the Law Reform
  (Frustrated Contracts Act) 1943 as a focus.


• Compare this with the alternative of breach of contract.

Question 7

This question covers all of the material in Questions 5 and 6 (above), but

you will need to arrange it in two parts.

(a) Define the doctrine of frustration and use cases to illustrate its

operation. Explain when it can arise and how it is limited (Question 5

material) – remember to refer to the quotation used in the question.

(b)Explain what happens when a contract is frustrated, with the focus on

the provisions of the Law Reform (Frustrated Contracts Act) 1943

(Question 6 material).

Question 8

• Explain briefly the ways in which a contract may be discharged:
  performance, agreement, breach and frustration.


• You are asked to discuss the liability of the English company, so
  payment of a lesser amount on signing is not of immediate importance,
  although it may be discussed in applying statute later.


• The English company sends the first instalment of machine parts but
  then the rest of the work becomes illegal. This is at the fault of neither
  party, so they may wish to claim frustration.


• Outline the factors that may lead to a claim of frustration: impossibility,
  illegality, radical difference in circumstances – illegality is particularly
  relevant.


• Apply the provisions of the Law Reform (Frustrated Contracts) Act
  1943 regarding money already paid, money due, expenses and valuable
  benefits.


• Compare this with the alternative for the English company of
  compensation for breach.

320 Contract law

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