Termination of Contract in UK Law

Leading Cases
  • Davis Contractors Ltd v Fareham Urban District Council
    • House of Lords
    • 19 Abr 1956

    So perhaps it would be simpler to say at the outset that frustration occurs whenever the law recognises that without default of either party a contractual obligation has become incapable of being performed because the circumstances in which performance is called for would render it a thing radically different from that which was undertaken by the contract.

  • Woodar Investment Development Ltd v Wimpey Construction U.K. Ltd
    • House of Lords
    • 14 Feb 1980

    Repudiation is a drastic conclusion which should only be held to arise in clear cases of a refusal, in a matter going to the root of the contract, to perform contractual obligations.

  • Heyman v Darwins Ltd
    • House of Lords
    • 20 Feb 1942

    If one party so acts or so expresses himself, as to show that he does not mean to accept and discharge the obligations of a contract any further, the other party has an option as to the attitude he may take up. But repudiation by one party standing alone does not terminate the contract: it takes two to end it, by repudiation, on the one side, and acceptance of the repudiation, on the other.

  • Wickman Machine Tool Sales Ltd v L. Schuler A.G.
    • House of Lords
    • 04 Abr 1973

    The fact that a particular construction leads to a very unreasonable result must be a relevant consideration. The more unreasonable the result the more unlikely it is that the parties can have intended it, and if they do intend it the more necessary it is that they shall make that intention abundantly clear.

  • Hong Kong Fir Shipping Company Ltd v Kawasaki Kisen Kaisha Ltd
    • Court of Appeal
    • 20 Dic 1961

    The test whether an event has this effect or not has been stated in a number of metaphors all of which I think amount to. the same thing; Does the occurrence of the event deprive the party who has further undertakings still to perform of substantially the whole benefit which it was the intention of the parties as expressed in the contract that he should obtain as the consideration for performing those undertakings?

  • National Carriers Ltd v Panalpina (Northern) Ltd
    • House of Lords
    • 11 Dic 1980

    I. Frustration of a contract takes place when there supervenes an event (without default of either party and for which the contract makes no sufficient provision) which so significantly changes the nature (not merely the expense or onerousness) of the outstanding contractual rights and /or obligations from what the parties could reasonably have contemplated at the time of its execution that it would be unjust to hold them to the literal sense of its stipulations in the new circumstances; in such case the law declares both parties to be discharged from further performance.

  • Hyundai Heavy Industries Company v Papadopoulos
    • House of Lords
    • 01 Abr 1980

    Much of the plausibility of the argument on behalf of the guarantors seemed to me to be derived from the assumption that the contract price was simply a purchase price.

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Books & Journal Articles
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Law Firm Commentaries
  • Liquidated Damages After Termination of Contract?
    • Mondaq United Kingdom
    • 7 de Mayo de 2010
  • Termination of Contract of Employment: Effect of Conditional Resignation
    • Mondaq United Kingdom
    • 20 de Julio de 2010
  • Termination & Liquidated Damages: Less Clear than Ever
    • JD Supra United Kingdom
    • White & Case LLP
    • 18 de Marzo de 2019
    The Court of Appeal of England & Wales considered, in respect of a delayed software project, whether a liquidated damages provision survived termination of the contract.
    ...... of England & Wales considered, in respect of a delayed software project, whether a liquidated damages provision survived termination of the contract. Liquidated damages clauses are common in a variety of commercial contracts, not least construction contracts. However, it is still not certain how ......
  • Good Faith and Contract Termination
    • JD Supra United Kingdom
    • Dentons
    • 8 de Agosto de 2016
    Deciding whether to terminate a contract, whether at common law for an alleged repudiatory breach or under a specific term in the agreement, is rarely easy. Get it wrong and you may be in breach yo...
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