In Walton Harvey Ltd v Walker & Homfrays Ltd [1931] 1 Ch 274, the defendants agreed to allow an advertising sign to be displayed on their hotel for a period of seven years. Before the seven years had expired, the local authority demolished the hotel. The defendants maintained that this event frustrated the contract. It was held that the defendants were liable in damages. They knew of the risk of the local authority demolishing the hotel and could have made provision for that in the contract.