Law 5110 Study Guide - Quiz Guide: Pacta Sunt Servanda, Strict Liability
Document Summary
Amalgamated investment & property co. ltd v. john walker & sons. Contract to make development from old building. After the contract had been entered into the property was listed by the local council meaning that it could no longer be developed as a commercial property and the value of the property fell significantly. In an action claiming that the contract was frustrated the courts held that the doctrine did not apply as in this instance the supervening event was one which the parties could have reasonably foreseen. A building, which was supposed to take 8 months to complete, took 22 because of unexpected shortages of building supplies. The contractors claimed that their contract was frustrated because the extra time meant that they would lose the profit that they had expected to make. The court disagreed and held that mere hardship or inconvenience was not sufficient grounds to declare the contract frustrated.
