The plaintiff Spanish concert promoter, and the defendant rock group, Guns ‘n’ Roses, agreed to provide a concert at the stadium of Atetico Madrid, but shortly before it was due to take place, the stadium was deemed unfit, and its licence withdrawn. Another stadium was not available, and the plaintiff sought recovery of sums paid in advance. The court was asked whether the contract provided a term that the plaintiffs should obtain all bnecessary licences, whether the cointract had been frustrated, and whether the obligation on the defendant was limited to being ready willing and able to perform.
Held: The claim succeeded. The contract had been frustrated: ‘The contract was to appear and actually to give a performance at the Vincente Calderon starting at 22.30 lasting 90 minutes. This could not be done, not because a permit was revoked but because the stadium had been found to be unsafe. In any event it was impossible for the defendants to perform their side of the bargain; they could not appear in the stadium any more than the plaintiffs could perform their obligations to erect the stage, the roof and generally to prepare the venue.’ and nor had the plaintiffs undertaken to bear all commercial risks.
Judges:
Gsrlsnd J
Citations:
[1995] EWHC QB 1
Links:
Statutes:
Law Reform (Frustrated Contracts) Act 1943 1(2)
Jurisdiction:
England and Wales
Citing:
Cited – Taylor and Another v Caldwell and Another QBD 6-May-1863
The defendants had agreed to hire a hall to give four concerts, but it burned down before they were to start.
Held: Blackburn J said: ‘where, from the nature of the contract, it appears that the parties must from the beginning have known that . .
Cited – Davis Contractors Ltd v Fareham Urban District Council HL 19-Apr-1956
Effect of Contract Frustration
The defendant appellants contended that their construction contract was frustrated because adequate supplies of labour were not available to it because of the war.
Held: The court considered how the frustration of the performance of a contract . .
Cited – Lauritzen A/A v Wijsmuller BV;( ‘The Super Servant Two’) CA 12-Oct-1989
Bingham LJ discussed the nature of frustration of contract: ‘The essence of frustration is that it is caused by some unforeseen supervening event over which the parties to the contract have no control and for which they are therefore not . .
Cited – Herne Bay Steam Boat Company v Hutton CA 1902
A contract to hire a steam boat to view the royal review of the naval fleet at Spithead as part of the celebrations for the coronation of Edward VII was not frustrated by cancellation of the review on the King’s illness because the fleet was still . .
Cited – Krell v Henry CA 1903
Mr Henry contracted to rent a flat located on Pall Mall from the plaintiff, Paul Krell for the daytime and on the days of the forthcoming cornation procession.. He was told that he would have an excellent view of, but this was not written down. He . .
Cited – London and Northern Estates Company v Schlesinger 1915
By a war-time order in council, an Austrian subject, who was an ‘alien enemy’, was prohibited from residing within certain specified areas, including the area where the leased premises were situated. He claimed that the tenancy contract was . .
Cited – BP Exploration Co (Libya) Ltd v Hunt (No 2) 1979
The contract between the parties relating to an oil concession in Libya had been frustrated by the nationalisation of the field.
Held: The court considered the setting of damages where the plaintiff had delayed in notifying the defendant of . .
Cited – Maritime National Fish Ltd v Ocean Trawlers Ltd PC 12-Apr-1935
(Nova Scotia En Banco) The parties contracted for a charter of a fishing ship. It then became unlawful for a ship to use otter trawl, the only equipment available to the ship, without a licence, but the number of licences was restricted and did not . .
Lists of cited by and citing cases may be incomplete.
Contract
Updated: 30 May 2022; Ref: scu.381773