Defendants agreed to transport plaintiff’s oil rig
using, at their option, either SS1 or SS2.
using, at their option, either SS1 or SS2.
Prior to performance defendants chose to allocate SS2.
SS2 then sank.
Plaintiffs brought action for damages, but defendants
claimed contract frustrated.
claimed contract frustrated.
Court of Appeal held even if sinking of SS2 was not
due to fault of defendants, sinking was not the frustrating event.
due to fault of defendants, sinking was not the frustrating event.
Frustrating event was defendant’s election not to use
SS1.
SS1.
And to allow defendant to rely on unavailability of
SS1 as frustrating event would allow it to rely on it own act of election, ie
self-induced frustration.
SS1 as frustrating event would allow it to rely on it own act of election, ie
self-induced frustration.
[Whereas Maritime
National Fish was clearly case of self-induced frustration, court here
seemed to be inducing economic breach.]
National Fish was clearly case of self-induced frustration, court here
seemed to be inducing economic breach.]
