Krell v Henry

A contract is frustrated if an event destroys the foundation of the contract that both parties had in mind.

Citation
[1903] 2 KB 740
Court
Court of Appeal
Year
1903
Subject
Contract Law
Topic
Frustration

Facts

The coronation of King Edward VII was planned for 26 and 27 June 1902, with processions through central London. Mr Henry saw a notice in the window of Mr Krell's flat at 56A Pall Mall, advertising rooms to let for viewing the coronation processions. He agreed to hire the flat for the days of the processions for £75 and paid a deposit of £25. The written contract did not mention the coronation. Two days before the processions, the King was taken ill with appendicitis, and the processions were cancelled. Mr Henry refused to pay the balance of £50, and Mr Krell sued for it.

Legal principle

The Court of Appeal held that the contract was frustrated, so Mr Henry did not have to pay the balance. Vaughan Williams LJ said that the court must ascertain, from the surrounding circumstances, the substance of the contract and whether it was based on the assumption that a particular state of things would continue. Both parties regarded the viewing of the processions as the foundation of the contract, as shown by the advertisement and the price charged, and the cancellation destroyed that foundation. Mr Henry did not counterclaim for the return of his deposit.

Related cases on frustration

Studying contract law? Our tutors help you understand and apply cases like this in essays, problem questions and exams. Request a quote or browse our law notes.

Back to all law cases

This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.

Contact Us

Enquire about our bespoke academic solutions