Davie v new merton board mills

A blast from the past!

Davie v New Merton Board Mills [1959] AC 604 is a landmark English contract law case that deals with the issue of frustration of contract.

In this case, the plaintiff, Davie, was a shipbuilder who had entered into a contract with the defendant, New Merton Board Mills, to build a ship. The contract specified that the ship was to be delivered by a certain date, but before the ship was completed, the UK government announced that it was introducing a new law that would prohibit the use of ships of a certain size in certain waters.

As a result of this new law, the ship would be useless to Davie, and he would not be able to deliver it to the defendant. Davie argued that the contract was frustrated and that he was no longer bound by its terms.

The court held that the contract was indeed frustrated, and that Davie was not liable for any damages. The court's decision was based on the principle that a contract is frustrated when an event occurs that makes it impossible for one or both parties to perform their obligations under the contract.

The case has been influential in the development of contract law, particularly in the area of frustration of contract. It has been cited in numerous subsequent cases and has helped to shape the law in this area.

In summary, Davie v New Merton Board Mills is an important case that highlights the principle of frustration of contract and the circumstances in which a contract may be deemed frustrated.