Krell v Henry [1903]

Court: Court of Appeal

Facts: Henry rented a flat from Krell to view the coronation procession of King Edward VII, which was later canceled due to the King's illness. Henry refused to pay the remaining balance, arguing that the contract was frustrated.

Issue: Does the cancellation of a specific event essential to the contract's purpose constitute frustration of purpose?

Held: The court held that the contract was frustrated because the specific purpose for which it was made (to view the coronation) could no longer be achieved. The contract was thus rendered void.

Key Judicial Statement: Lord Justice Vaughan Williams established that the doctrine of frustration applies when a fundamental purpose of the contract ceases to exist. An implied condition related to the event's occurrence was essential to the contract.

💡Leveluplaw: The doctrine of frustration of purpose allows a contract to be discharged if a specific and fundamental purpose of the agreement becomes impossible to achieve. This principle is vital in cases where the underlying reason for the contract no longer exists.