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#contract #frustration #law
In Dick Kerr and Co v Metropolitan Water Board [1918] AC 119, contractors agreed to construct a reservoir in six years. The contract provided that, in the event of delay, 'whatsoever and howsoever occasioned', the contractors were to apply to the engineer for an extension of time. When the contractors were required by a government order to stop the work and sell their plant, it was held that the contract was frustrated because the delay clause was not intended to apply to such a fundamental change of circumstances. It was held that the clause was intended to cover only temporary difficulties and did not cover fundamental changes in the nature of the contract.
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