Question

If there is a contract to build a stadium, and an earthquake destroys it 1/2 way, which is most correct:

A Contract is terminated by doctrine of frustration and there is no requirement to rebuild the stadium

B None of the above

C The builder must rebuild the stadium, otherwise will be in breach of contract

D There is a breach of contract

In the case of Cehave NV v Bremer Handelsgesellschaft mbH, the court said the quality of the food was an intermediate term.

A This decision would apply to animal food even if quality of food is described as "of the essence"

BThis decision applies to all types of food

C This decision may not apply for contract for restaurant food

D none of the above

Answer 1

1. In this case, contract is terminated by doctrine of frustration and there is no requirement to rebuild the stadium. This is because due to unforeseen circumstances and without any fault of either of the parties, it is not possible to fulfill the contract and hence the contract shall be treated as null and void. Since earthquake destroyed half of the stadium which is not in control of either of the parties, hence the contract is terminated by doctrine of frustration.

2. This decision applies to all types of food because the court said the quality of the food was an intermediate term which means that the quality of all types of good was an intermediate term without any mention of specific type of food.