Contract Law - Frustration Question

Law revision, exam and homework help.

Announcements Posted on
TSR launches Learn Together! - Our new subscription to help improve your learning 16-05-2013
IMPORTANT: You must wait until midnight (morning exams)/4.30AM (afternoon exams) to discuss Edexcel exams and until 1pm/6pm the following day for STEP and IB exams. Please read before posting, including for rules for practical and oral exams. 28-04-2013
Sign in to Reply
  1. Influenced's Avatar
    • Junior Member
    • Posts: 30
    Contract Law - Frustration Question
    Hello there everyone.. basically I'm just a bit confused whether 'Krell v Henry" or "Herne bay" case applies to the following scenario

    Ryman Ltd is having an exhibition at "Long Row Exhibition" on the 21st June 2009

    In order to promote its business it gets into contract with Pencils ltd, for it to supply 500 pencils with the store colours, the store name and "Long Row Exhibition 21st June 2009" printed on each pencil. Then pencils will be given out on the day.

    Pencils Ltd agree to give Ryman Ltd a reduced price if they can print the Pencil ltd logo on the pencils as to give them increased publicity

    the total contract price is £4000, payable at the need of June

    Ryman Ltd receive a deliver of 500 pencils on 25th May the remainder of the pencils are due to be delivered on the 30th May?

    There is a bus and tube strike announced to take place on 21st June, and the EXhibition is called off on the 29th May


    Rymans Ltd refuse to pay £4000

    advise Pencils ltd..

    please help?? thanking you in advance
    advise Pen
  2. MBT Bot's Avatar
    • TSR's sister site :)
    • Location: The interweb
    Contract Law - Frustration Question
    It's been a while since you posted and nobody's replied yet...maybe you should check out MarkedbyTeachers.com, TSR's sister site. It has the largest library of essays in the UK with over 173,000+ coursework, essays, homeworks etc.. all written by GCSE, A Level, University and IB students across all topics.

    Handpicked examples show formative feedback comments from some brilliant teachers. Plus, reviews from A* students and hints, tips & common mistakes from their teacher team. You get access either by publishing some of your own work, or paying £4.99 for a month's access. Both ways give you unlimited access to all of the essays.

    All their documents are submitted to Turnitin anti-plagiarism software, so it can't be misused, and the site's used by hundreds of thousands of UK teachers and students.

    What's more, you can take a look around the site and preview the work, read reviews and teacher summaries AND view the hints and tips absolutely free. Click here to find out more...
  3. RobertWhite's Avatar
    • PS Helper
    • Overlord in Training
    • Location: Cheam
    • Posts: 2,862
    Re: Contract Law - Frustration Question
    (Original post by Influenced)
    Hello there everyone.. basically I'm just a bit confused whether 'Krell v Henry" or "Herne bay" case applies to the following scenario

    Ryman Ltd is having an exhibition at "Long Row Exhibition" on the 21st June 2009

    In order to promote its business it gets into contract with Pencils ltd, for it to supply 500 pencils with the store colours, the store name and "Long Row Exhibition 21st June 2009" printed on each pencil. Then pencils will be given out on the day.

    Pencils Ltd agree to give Ryman Ltd a reduced price if they can print the Pencil ltd logo on the pencils as to give them increased publicity

    the total contract price is £4000, payable at the need of June

    Ryman Ltd receive a deliver of 500 pencils on 25th May the remainder of the pencils are due to be delivered on the 30th May?

    There is a bus and tube strike announced to take place on 21st June, and the EXhibition is called off on the 29th May


    Rymans Ltd refuse to pay £4000

    advise Pencils ltd..

    please help?? thanking you in advance
    advise Pen

    This case isn't making a whole lot of sense to me. Pencils agree to give Ryman Ltd 500 pencils for £4,000. Rymans receive 500 pencils on the 25th May. Why is there any remainder of pencils to be delivered on the 30th May when the contract states 500? It does not matter the exhibition has been called off this was not mentioned in the contract between Pencils and Ryman. Pencils should be able to sue or whatever for the money Rymans owe them. You must have written this case down wrong or I'm missing something. I'm not a Law student but this does not make much sense.
  4. ~*Kate*~'s Avatar
    • Junior Member
    • Posts: 44
    Consider whether SuperServant II and the Canadian trawler case prevent frustration in this case - is it self induced? Was the supervening event foreseen? If foreseen, the contract cannot be frustrated - Lord Denning said obiter in the Eugenia that if an event is foreseen it would normally be provided for in the contract.

    In my opinion, from what you've said, Knell v Henry appears to apply but you need to cover the other bases first. So in my view, Pencil Ltd wouldn't have to pay though section 1 of the Law Reform (Frustrated Contracts) Act 1943 may apply.


    This was posted from The Student Room's iPhone/iPad App
Sign in to Reply
Share this discussion:  
Article updates
Moderators

We have a brilliant team of more than 60 volunteers looking after discussions on The Student Room, helping to make it a fun, safe and useful place to hang out.

Reputation gems:
The Reputation gems seen here indicate how well reputed the user is, red gem indicate negative reputation and green indicates a good rep.
Post rating score:
These scores show if a post has been positively or negatively rated by our members.