Common Law Rule
Categories of a frustrating event:
Comes from Davis Contractors v
- Government intervention
- Unavailability of specific person
Fareham (Radically different, without 1. Frustration + Force Maje
fault, and is unforeseen). Eg - Taylor v
- Illegality
Caldwell (Contract discharged),
- Impossibility
Paradine v Jane
- Non-Occurrence of a fundamental event (Morgan v Manser)
Consequences
Delay - relevant factors Discharge of contract
* Contractual provisions for the consequence of the delay? - Contract comes to an end
* Likely length of the delay - Both parties released from all future
* Any time set in the contract for obligations to be performed obligations
* Performance resumed radically different from the contract - Neither party in breach of contract
(Metropolitan Water Board v Dick Kerr and Company) Money paid, due, expenses, and benefits
* More expensive and difficult to perform (Tsakiroglou v Noblee - Common law (Fibrosa Spolka Akcjna v
Fairbairn)
2. Preliminary Statemen
Thorl)
- LR (FC) Act 1943
Remedies Pre-Contractual Statements
● Recission - the effect of any misrep is to make the ● Terms - if false will be actionable
contract voidable. Misrepresentee can affirm or rescind it as a breach of contract
● Ways to lose right to rescind: Affirm, Delay, Innocent third ● Representations - if false may be
party interest, Impossibility actionable as misrepresentation 3. Duress + Undue Influen
● Damages for misrepresentation ● Sales Puff - If false not actionable
Types of Duress - “Pressure, espec
Fraudulent misrepresentation Effect of duress actual or threatened physi
* Assessed on tort principles Fraudulent Voidable force, put on a person to a
* Extends to all losses - Knowledge it is - rescission a particular way”
* East v Maurer false; or - Neither party need perform future
* Contrasts damages for breach - Without belief in obligations
Non-Fraudulent CIBC Mortgages plc v Pitt
its truth; or - Notice required
* s2(1) MA 1967 - Notice of reason for surety
- Recklessly, not NB - bars to rescission
* Reasonably foreseeable losses? Barclays bank v O’Brien
caring if its true a) affirmation
* All consequential losses? - Actual or constructive notice
or false b) undue delay
* Royscot v Rogerson RBS Etridge (No 2)
- Derry v Peek c) an innocent purchaser has already
Onus of proof - Constructive notice
Non Fraudulent acquired interest in the property
* Misrepresented must prove that they - Put on inquiry
- Giving a right to d) impossible to restore goods or
Categories of a frustrating event:
Comes from Davis Contractors v
- Government intervention
- Unavailability of specific person
Fareham (Radically different, without 1. Frustration + Force Maje
fault, and is unforeseen). Eg - Taylor v
- Illegality
Caldwell (Contract discharged),
- Impossibility
Paradine v Jane
- Non-Occurrence of a fundamental event (Morgan v Manser)
Consequences
Delay - relevant factors Discharge of contract
* Contractual provisions for the consequence of the delay? - Contract comes to an end
* Likely length of the delay - Both parties released from all future
* Any time set in the contract for obligations to be performed obligations
* Performance resumed radically different from the contract - Neither party in breach of contract
(Metropolitan Water Board v Dick Kerr and Company) Money paid, due, expenses, and benefits
* More expensive and difficult to perform (Tsakiroglou v Noblee - Common law (Fibrosa Spolka Akcjna v
Fairbairn)
2. Preliminary Statemen
Thorl)
- LR (FC) Act 1943
Remedies Pre-Contractual Statements
● Recission - the effect of any misrep is to make the ● Terms - if false will be actionable
contract voidable. Misrepresentee can affirm or rescind it as a breach of contract
● Ways to lose right to rescind: Affirm, Delay, Innocent third ● Representations - if false may be
party interest, Impossibility actionable as misrepresentation 3. Duress + Undue Influen
● Damages for misrepresentation ● Sales Puff - If false not actionable
Types of Duress - “Pressure, espec
Fraudulent misrepresentation Effect of duress actual or threatened physi
* Assessed on tort principles Fraudulent Voidable force, put on a person to a
* Extends to all losses - Knowledge it is - rescission a particular way”
* East v Maurer false; or - Neither party need perform future
* Contrasts damages for breach - Without belief in obligations
Non-Fraudulent CIBC Mortgages plc v Pitt
its truth; or - Notice required
* s2(1) MA 1967 - Notice of reason for surety
- Recklessly, not NB - bars to rescission
* Reasonably foreseeable losses? Barclays bank v O’Brien
caring if its true a) affirmation
* All consequential losses? - Actual or constructive notice
or false b) undue delay
* Royscot v Rogerson RBS Etridge (No 2)
- Derry v Peek c) an innocent purchaser has already
Onus of proof - Constructive notice
Non Fraudulent acquired interest in the property
* Misrepresented must prove that they - Put on inquiry
- Giving a right to d) impossible to restore goods or
