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#contract #frustration #law
However, there must be an absolute non-occurrence of the event which is the common purpose or foundation of the contract. If some part of the contract remains possible to perform, then the contract will not be frustrated. In Herne Bay Steamboat Co Ltd v Hutton [1903] 2 KB 683, the plaintiff steamboat company contracted to place their steamboat The Cynthia at the disposal of the defendant on 28 June 1902, 'for the purpose of viewing the Naval Review and for a day's cruise round the fleet; also on Sunday 29 June 1902, for a similar purpose'. The Cynthia was fitted out for the trip but, on 25 June, the postponement of the Review was announced. The plaintiff telegraphed the defendant: 'What about Cynthia? She is ready to start at six tomorrow. Waiting cash.' There was no reply from the defendant. The plaintiff brought an action for damages for breach of contract. The Court of Appeal held that the defendant was not discharged from his obligations under the contract by the postponement of the Naval Review because: (a) the object in hiring the vessel was the defendant's alone and of no concern to the plaintiff; and (b) the viewing of the Naval Review was not the foundation of the contract as they could still have cruised around the fleet.
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