This edition has updated cases for analysis in terms of the validity of contracts, the court's role in determining whether a valid offer has been made, the concepts of consideration and mutual mistake, the enforceability of restrictive covenants, the assertion of rights pursuant to third party contracts and novations, and the elements of frustration of purpose
needed to discharge a contractual obligation, as well as revisions to the Uniform Commercial Code and new material on proving contractual terms.
However, LIBOR plaintiffs have not alleged mutual mistake and frustration of purpose claims.
As such, plaintiffs should look to fraud, frustration of purpose, breach of the implied covenant of good faith and fair dealing, and mutual mistake for improved chances of recovery.
Chapters address the scope of application of general contract principles, the concept of non-performance, the force majeure excuse, and hardship, along the way examining such elements as contractual risk allocations, unforseeability of an impediment, impediments beyond the typical sphere of risk and control of the obligor, responsibility for third parties, legal impediments, involvement of states or state enterprises, the hardship threshold test, frustration of purpose
, irreconcilable differences, and comparison with exemptions under domestic legal systems.
It may be that this restates a form of frustration of purpose
, although it is probably wider than the doctrine as currently understood.
This Note suggests that the Delaware Chancery Court has applied a standard that analytically resembles the "basic assumption" test used to determine the existence of an excusing contingency under the doctrines of impracticability and frustration of purpose.
This Note explores the parallels between MAE clauses and default rules for excuse under the familiar contract doctrines of impracticability and frustration of purpose.
For example, Michigan courts have accepted the frustration of purpose
defense in a suit for payment of child support payments when the child had died.
Two doctrines fit these criteria--impracticability and frustration of purpose
40) Furthermore, in order to enjoy the legal excuse of frustration of purpose
as laid down in Florida's common law of contracts, one must establish that the essential purpose and value of the contract have been frustrated by some unforeseen event.