LW202 - CONTRACT LAW 2

Topic 6 Discharge by Frustration;

Question 1.

Facts

In Palikir, the capital of the Federated States of Micronesia (FSM), Beautean Narrhun is a teacher

at St Nenas Primary School. She decides to arrange a school trip for her class of school children

to visit the beach and the turtle sanctuary on an island called Isla de Malo Fortuna. She approaches

the Wave Rider Ferry Company which is owned by Ansito Thoulag. Beautean and Ansito enter

into a contract where it is agreed that:

Wave Rider will transport the class to and from Isla de Malo Fortuna using one of

the Wave Rider Ferry Company boats in exchange for Wave Riders fee;

The school trip will give the children 6 hours on the island on the same day;

The boat will leave Palikir Wharf at 9am on the day of the school trip getting to

the Island by 10am, and will leave the island the same day at 4pm so that the

children can be returned to their parents waiting for them at the Palikir wharf at

5pm. Advise the parties under common law only under the following scenarios if

the contract is discharged for frustration or not?

Questions

(a) On the day before the school trip, half of the class develop the flu virus. So Beautean

decides to cancel the school trip. Ansito believes that Beautean is still bound under the contract to

pay the fee.

(b) On the morning of the school trip but before picking up her class, Ansito learns that as a

result of rough sea weather all the direct routes to the island are unsafe for shipping. In order to

reach the island the boat would need to take a detour which will add two hours to the journey in

each direction and which will cost more money.

(c) The day before the school trip, the boat in which Wave Rider intended to use for the trip is

stolen, and Wave Rider only have one other boat which is otherwise engaged. Ansito informs

Beautean that Wave Rider is unable to provide the transport for the trip.

(d) The turtle sanctuary on the island is closed by legislation. It is now illegal under FSM

statute for humans to come into contact with turtles because humans may spread contagious

diseases to turtles.

(e) The island is now closed to visitors by legislation. It is now illegal for anyone under FSM

statute to either visit the island or for anyone to transport anyone to the island.