Chapter 24 End of Chapter Questions

. Which of the following statements could justify the law of frustration?

The law is based on implied terms reflecting a basic common assumption between the parties.

The law aims to achieve fairness between the parties when there is a radical change in circumstances.

The law reflects that the parties would not have consented to the radical change in nature of their obligations.

None of the answers given is correct.

. On 28 April, A purchases a one-month bus pass for the month of May. A clause in the contract states that A 'takes the risk of delays or strikes whatsoever and howsoever occasioned'. On 30 April, a strike began that was to last for two months. What is the likely effect of the strike on the contract?

The contract is frustrated.

The contract remains in place.

It depends how the clause is interpreted.

None of the answers given is correct.

. A is a famous singer and songwriter. A contracted with B to listen to a first recording of B's single once it was finished, and to provide feedback. Before B had finished recording the singe, A became deaf as a result of her speaker system blowing up. A cannot now fulfil her obligations under the contract. What is the best advice to give to B?

B can claim for A's breach of contract.

B has no claim as the contract has been frustrated.

. A wishes to rent a hotel room to go and see a football game with a client in London. B advertises a room next to the football stadium. On 15 January, A books the room for two nights. The football match is not mentioned in the contract. The day of the match, 18 January, the game is cancelled due an issue with the stadium. A claims that the contract is frustrated. Is this claim likely to succeed?

Yes

No

. A contracts for the purchase from B of 50kg of American candy as snacks for a large American-themed event she is hosting. A pays 50% of the price upfront. A week before the event, B tells A that the shipment of candy has been destroyed by an event in the Atlantic Ocean. What is the effect on the contract?

The contract is frustrated and A can claim back the 50% she paid.

The contract is frustrated and A cannot claim back the 50% she paid.

The contract is not frustrated and B is in breach of contract.

The contract is not frustrated and B could be in breach of contract if he does not supply the candy before the event.

. A contracted with a shipping company, B, for the transport of his new car from Calais to Dover. B had two ships: The Shipment One and The Shipment Two. B gave A a choice of ships to use, and A contracted for the car to be brought by The Shipment Two. A day before departing Calais, The Shipment Two was damaged by a storm and was unable to sail. B had already contracted out The Shipment One. Is the damaging of The Shipment Two likely to be found to be a frustrating event?

Yes

No

. A contracted with B for the building of a skyscraper for £30,000,000. After 10 of the 30 floors had been built by B and A had paid 50% of the contract price, a law was proclaimed that prevented any further building in the area for an infinite duration. The contract was found to be frustrated. Under the common law, how much could A recover from B?

£15,000,000

£10,000,000 (or the price of 10 floors)

£15,000,000, minus any expenses incurred by B

Nothing

. A contracted with B for the building of a skyscraper for £30,000,000. After 10 of the 30 floors had been built by B and A had paid 50% of the contract price, a law was proclaimed that prevented any further building in the area for an infinite duration. The contract was found to be frustrated. Under the Law Reform (Frustrated Contracts) Act 1943, how much might A recover from B?

£15,000,000, with no possibility of any deduction for expenses incurred by B

£10,000,000 (or the price of 10 floors)

£15,000,000, minus any expenses incurred by B as the court thinks just

Nothing

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