Defendant contracted with Water Board to construct
reservoir.
reservoir.
During construction Minister, acting under statutory powers,
required them to cease work on contract and remove and sell their equipment.
required them to cease work on contract and remove and sell their equipment.
Board brought action claiming contract still
continued.
continued.
House of Lords held interruption created by
prohibition was of such character and duration as to make contract, if resumed,
in effect a different contract.
prohibition was of such character and duration as to make contract, if resumed,
in effect a different contract.
Original contract therefore discharged.
Was provision in contract in this case that builders
were to be allowed time extension in event of ‘delays’.
were to be allowed time extension in event of ‘delays’.
However this was construed as inapplicable to
situation where delay which occurred was such as to bring about radical change
in the obligation.
situation where delay which occurred was such as to bring about radical change
in the obligation.
