Notcutt v Universal Equipment Co (London) Ltd

Notcutt v Universal Equipment Co (London) Ltd is a significant case in English contract law, specifically relating to the doctrine of frustration.

The case involved a contract for the sale of goods. The goods in question were substantially damaged before delivery, but after the risk in the goods had passed to the buyer. The key legal question was whether the damage was so fundamental as to frustrate the contract.

The court held that the contract was frustrated. The extent of the damage to the goods rendered them commercially useless for the purpose for which they were intended, essentially making it a fundamentally different contract than the one originally agreed upon.

The importance of Notcutt v Universal Equipment Co (London) Ltd lies in its contribution to the understanding of the threshold for frustration. It clarifies that merely because risk has passed to the buyer, it doesn't preclude the possibility of frustration occurring if the goods are subsequently destroyed or significantly damaged. The damage must be severe enough to change the fundamental nature of the contractual obligation. The case emphasizes the requirement of a radical alteration in the obligation, not merely an increase in difficulty or expense, for frustration to be successfully pleaded.