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Outbreak of war? Destruction of the subject matter? Non-occurrence of some event central to the contract?
I’ve just found one of the questions I got wrong on your Mock test. In this question there is the following statement:
once the impeding event ceases to prevent performance, the contract should go ahead as planned
What if the contract was to supply strawberries to Wimbledon, after delay there would be no point in supplying them as the tournament is over.
Surely it depends on whether the other party agrees? Especially if the contract agreed a specific delivery date.
This is covered by the Law Reform (Frustrated Contracts) Act 1943 (?)
Essentially it says:
any money paid is repayable
any money to be paid ceases to be payable
no right of action lies with either party to enforce the contractIt’s the same position as with the destruction of the subject matter. If it no longer exists, how can you proceed? If I have a horse to sell and, on the day before the sale goes ahead, the horse dies, how can I possibly insist that the proposed purchaser goes ahead with the deal (unless he was buying the horse in order to kill it to make horse steaks from it)
If the buyer has already paid money, I have to repay it. If he hasn’t yet paid money, I can’t insist that he should. Neither can he insist that I provide an equivalent horse nor can I insist on delivering the original horse to him
Ok?
I don’t remember covering the Law Reform (Frustrated Contracts) Act 1943 or destruction of the subject matter. I understand your explanation however can you please let me know why the following statement is incorrect:
to be able successfully to claim impediment, the impeded party must show that the impediment is such that they are physically unable to complete their obligations
Thanks
Act of war! Can’t complete because to do so would involve trading with the enemy. Or even having to pass through enemy territory? For example, say your country was in a contract with Lesotho and suddenly South Africa declares war on your country. To get to Lesotho you’d have to pass through South Africa
Ok?
Are you saying that they cannot show it because it would mean having to do this?
No! I’m saying that BECAUSE of the impeding event they cannot perform their obligations. The other party (in Lesotho) would most likely know about S Africa being at war with your country. They don’t physically have to show anything.
It would be enough to contact the other party and say “Sorry pal, we can’t complete because of …………… (whatever the reason)”
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