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United Kingdom Leading Case frustrationchallenges to awards

Pioneer Shipping Ltd v BTP Tioxide Ltd (The Nema)

[1982] AC 724
JurisdictionUnited Kingdom
CourtUK House of Lords
Year1982
StatusBinding authority

Summary

A contract is frustrated only where a supervening event renders performance radically different from what was originally contemplated by the parties.

Key Principle

frustration; event must render performance radically different from what was contemplated

Area of Law

Contract — Frustration and Illegality

Related Cases

Patel v Mirza [2016] UKSC 42

The illegality defence is governed by a trio of policy considerations rather than the reliance test, requiring courts to weigh the purpose of the relevant rule, public policy, and proportionality.

Les Laboratoires Servier v Apotex Inc [2014] UKSC 55

Illegality defence requires sufficient connection between the turpitude and the claim; mere incidental illegality will not bar recovery.

Taylor v Caldwell (1863) 3 B&S 826

A contract is discharged by frustration where supervening impossibility, not caused by either party, renders performance fundamentally different from that undertaken.

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