“Frustration PYQ pg 17 Vic Vic, the manager of a group of theatrical performers (the Vickettes), arranged with Wally, for a fee of 50,000, that the group would provide the entertainment at a series of festivals organized by Wally. Xerxes, the principal actor of the Vickettes, drank heavily the night before the first performance was to take place. As a result of his drinking, he was unable to perform properly at the performance. His words were slurred and he frequently stumbled as he moved about the stage. As a result, Wally who had paid $15,000 for the hire of the venue had to return 20,000 to the dissatisfied members of the audience. In addition, Wally was unable to sell any souvenir mugs, tea towels or aprons. The remaining four theatrical performances for that year had to be cancelled due to poor ticker sales. Advise Wally. (Contract Law)”

In advising Wally, we are required to consider whether there is frustration arises in the contract and what remedies can Wally get if there is.

The origin of the doctrine of frustration can be seen in the case of Taylor v Caldwell. In this case, Caldwell had agreed to rent a music hall to Taylor for a series of concerts. Before the concerts, the music hall was burnt down and it was impossible for the contract to be carried out. The court held that when a frustration event takes place and the contract is impossible to perform, both the parties would be automatically discharged for further performance.

In Davis Contractors Ltd v Fareham UDC, the contractor agreed to build houses for local council within 8 months and with an agreed price of 85,000. Due to a shortage of skilled labour, the work took 22 months to complete and it incurred more cost. The contractor claimed that the co…(short extract)