Contract Law
This question involves Contract Law, specifically Discharge of contracts regards Frustration.
There are four ways of discharging the contract, namely performance, agreement, frustration and breach.
Under the doctrine of frustration, the parties are excused further performance of their obligation if some event occurs during the currency of the contract, without the fault of either party, which makes further performance impossible or illegal or radically different from what was originally undertaken.
Frustration occurs when the whole basis of the contract is the continued existence of a specific thing which is destroyed. In Taylor v Caldwell (1863), the plaintiff rent a music hall for a series of concert. After the contract was made, the hall was destroyed by fire before the first performance. The court held that the contract was frustrated as impossible to perform.
Frustration also occurs when the party for personal service contract dies or becomes ill. In Condor v Barron Knights (1966), a drummer was contracted to perform on seven nights of the week but he fell ill and his doctor advised him to perform for a maximum of four nights per week. The contract was frustrated as the basis of personal service contract is the employee’s health will allow him to perform his obligations.
Subsequently, if the whole basis of the contract is an event which does not occur, the contract will be frustrated. In Krell v Henry (1903), the defendant rent a room overlooking the route of the coronation procession of King Edward VII for viewing the procession. However, the coronation was postponed due to illness of the king. The court held that the contract was frustrated as the contract was made for the only purpose of viewing the procession and the event did not occur.
Nonetheless, in Herne Bay Steamboat v Hutton (1903), the defendant hired a boat for the main purpose of taking paying...
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