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Tsakiroglou & Co Ltd v Noblee Thorl GmbH [1962] AC 93

The defendant agreed to ship some Sudanese peanuts during November or December 1956 to Hamburg for a certain price. On 2nd of Nov the Suez canal was closed to shipping. The defendant could still have transported the peanuts within the contractually agreed time but this would mean going via the Cape of Good Hope which would have taken four times as long and increased the cost of transport considerably. The defendant did not carry the goods and argued that the contract had been frustrated.

Held:

The contract was not frustrated. It was still possible to perform the contract without any damage to the peanuts. The fact that it was more difficult or costly to perform is not sufficient to amount to frustration.

Back to lecture outline on Frustrated contracts