The Hotel offered a table for 10 for the food tasting and you have tasted the

The hotel offered a table for 10 for the food tasting

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outstanding is to be paid after the wedding dinner. The Hotel offered a table for 10 for the food tasting, and you have tasted the food. However, a week prior your wedding, the Hotel is burnt down and as such, the wedding is forced to cancel because impossible to perform the contract, the contract is frustrated and thus void. According to s.15(2) , you can get the whole refund for the 50% you have paid for the booking, and the outstanding needs not to pay. However, since you have taken a table for 10
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for the food tasting, you are required to pay a reasonable sum for the benefits you have received. ) The original statute: s.15(3) “Where any party to the contract has, by reason of anything done by any other party thereto in, or for the purpose of, the performance of the contract, obtained a valuable benefit (other than a payment of money to which subsection (2) applies) before the time of discharge, there shall be recoverable from him by the said other party such sum (if any), not exceeding the value of the said benefit to the party obtaining it, as the Court considers just, having regard to all the circumstances of the case and, in particular— (a) the amount of any expenses incurred before the time of discharge by the party benefited in, or for the purpose of, the performance of the contract, including any sums paid or payable by him to any other party in pursuance of the contract and retained or recoverable by that party under subsection (2); and (b) the effect, in relation to the said benefit, of the circumstances giving rise to the frustration of the contract.” In BP Exploration Co (Libya) Ltd v Hunt [1979], the court held that the benefit was not the value of the services themselves, but the ‘end product’ of the service. Hence, the value of the benefit is to be assessed after the frustrating event.
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In this case, the court explained the approach to be taken in assessing the value of the benefit under s.1(3) of the Law Reform (Frustrated Contracts) Act 1943: (a) identify the benefit (b) Value the benefit * the value at the time of the discharge of the contract (c) Take into account expenses incurred by B and sum retained/ recoverable by A under s.1(2) ( section 15(2) of the CLA 1956 )* these expenses will be set off against the benefit in step (b). (d) Consider the effect of frustrating event on the benefit. Where the subject matter of the contract is totally destroyed by the frustrating event, as like in the case of Appleby v Myers ( a case before the Law Reform (Frustrated Contracts) Act 1943 ), no benefit has been conferred on the party. It is the party who is conferring the benefit which is to take the risk of depreciation or destruction of the subject matter by the frustrating event. (e) Award a just sum to party conferring the benefit.
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(B) Discharge by performance 1. When both parties have fully performed the terms of the contract, the contract is discharged. In practice, most contracts are discharged by performance.
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  • Winter '17
  • Daniel
  • FC

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