Davis Contractors Ltd v Fareham Urban District Council [1956] UKHL 3 is an English contract law case, concerning the frustration of an agreement.
Facts
Davis Contractors agreed with Fareham UDC to build 78 houses over eight months for £92,425. It ended up taking 22 months because Davis was short of labour and materials and cost £115,223. Davis submitted the contract was frustrated and void and therefore they were entitled to quantum meruit for the value of work done.
Judgment
The House of Lords held that although the performance of the contract had become more onerous, it was not frustrated. Lord Reid argued that saying frustration was an implied term was fanciful because people do not write about unforeseeable events. Instead, he wrote the following:
Lord Radcliffe concurred with the result:
Another argument that failed was that an express term was incorporated that the agreed price was binding only if there were in fact adequate supplies of labour and materials.
Australian law
Lord Radcliffe's test was approved by the High Court of Australia in Codelfa Construction Pty Ltd v State Rail Authority of NSW.