Krell v. Henry
Encyclopedia
Krell v Henry [1903] 2 KB 740 is an English
case which sets forth the doctrine of frustration of purpose
in contract law. It is one of a group of cases known as the coronation cases
which arose from events surrounding the coronation of King Edward VII of the United Kingdom
in 1902.
located at 56A Pall Mall
from the plaintiff, Paul Krell, for the purpose of watching the coronation procession
of Edward VII
scheduled for June 26 and 27. The housekeeper
of the premises informed Henry that he would have an excellent view of the procession from the room.
Desiring to secure the rental of Krell's flat for the purpose of observing the coronation procession, Henry wrote the following letter to Krell's solicitor:
For the purpose of accepting Henry's offer to rent the flat, on the same day the defendant received the following reply from the plaintiff's solicitor:
The parties agreed on a price of £75
, but nowhere in their written correspondence did either of them explicitly mention the coronation ceremony. Henry paid a deposit of £25 to Krell for the use of the flat, but when the procession did not take place on the days originally set (on the grounds of the King’s illness), Henry refused to pay the remaining £50. Krell brought suit
against Henry to recover the remaining balance of £50, and Henry countersued
to recover his deposit in the amount of £25.
. This principle was extended in later cases to situations in which an underlying condition that was essential to the performance of the contract (rather than simply being a necessary condition) ceases to exist.
Williams held that such a condition (in this case, the timely occurrence of the coronation proceeding) need not be explicitly mentioned in the contract itself, but rather may be inferred from the extrinsic circumstances surrounding the contract. Thus, the parol evidence rule
was inapplicable here. First, he examined the substance of the contract, and then determined whether the contract was founded on the assumption of the existence of a particular state of affairs.
Williams then determined that given the affidavits of the parties, Krell had only granted Henry a license to use the rooms for a particular purpose (watching the coronation). He analogized the situation to one in which a man hired a taxicab
to take him to a race. If the race did not occur on the particular day the passenger had thought, he would not be discharged from paying the driver; but unlike the situation in this case, the cab did not have any special qualification, as the room here did (its view of the street). Furthermore, the cancellation of the coronation could not reasonably have been anticipated by the parties at the time the contract was made.
Romer LJ
said,
Stirling LJ concurred.
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
case which sets forth the doctrine of frustration of purpose
Frustration of purpose
In the law of contracts, frustration of purpose is a defense to enforcement of the contract. Frustration of purpose occurs when an unforeseen event undermines a party's principal purpose for entering into a contract, and both parties knew of this principal purpose at the time the contract was made...
in contract law. It is one of a group of cases known as the coronation cases
Coronation cases
The Coronation cases were a group of appellate opinions in English law cases, all arising out of contracts that had been made for accommodation for viewing the celebrations surrounding the coronation of King Edward VII, originally scheduled for June 26, 1902...
which arose from events surrounding the coronation of King Edward VII of the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
in 1902.
Facts
The defendant, CS Henry, agreed by contract on June 20, 1902, to rent a flatApartment
An apartment or flat is a self-contained housing unit that occupies only part of a building...
located at 56A Pall Mall
Pall Mall, London
Pall Mall is a street in the City of Westminster, London, and parallel to The Mall, from St. James's Street across Waterloo Place to the Haymarket; while Pall Mall East continues into Trafalgar Square. The street is a major thoroughfare in the St James's area of London, and a section of the...
from the plaintiff, Paul Krell, for the purpose of watching the coronation procession
Coronation of the British monarch
The coronation of the British monarch is a ceremony in which the monarch of the United Kingdom is formally crowned and invested with regalia...
of Edward VII
Edward VII of the United Kingdom
Edward VII was King of the United Kingdom and the British Dominions and Emperor of India from 22 January 1901 until his death in 1910...
scheduled for June 26 and 27. The housekeeper
Housekeeper (servant)
A housekeeper is an individual responsible for the cleaning and maintenance of the interior of a residence, including direction of subordinate maids...
of the premises informed Henry that he would have an excellent view of the procession from the room.
Desiring to secure the rental of Krell's flat for the purpose of observing the coronation procession, Henry wrote the following letter to Krell's solicitor:
I am in receipt of yours of the 18th instant, inclosing form of agreement for the suite of chambers on the third floor at 56A, Pall MallPall Mall-Places:* Pall Mall, urban downtown ares of Bendigo, Australia* Pall Mall, London, a street in the City of Westminster, London* Pall Mall, Tennessee, a small unincorporated community in Fentress County, Tennessee...
, which I have agreed to take for the two days, the 26th and 27th instant, for the sum of 75l. For reasons given you I cannot enter into the agreement, but as arranged over the telephone I inclose herewith cheque for 25l. as deposit, and will thank you to confirm to me that I shall have the entire use of these rooms during the days (not the nights) of the 26th and 27th instant. You may rely that every care will be taken of the premises and their contents. On the 24th inst. I will pay the balance, viz., 50l., to complete the 75l. agreed upon.
For the purpose of accepting Henry's offer to rent the flat, on the same day the defendant received the following reply from the plaintiff's solicitor:
I am in receipt of your letter of to-day's date inclosing cheque for 25l. deposit on your agreeing to take Mr. Krell's chambers on the third floor at 56A, Pall Mall for the two days,
the 26th and 27th June, and I confirm the agreement that you are to have the entire use of these rooms during the days (but not the nights), the balance, 50l., to be paid to me on Tuesday next the 24th instant.
The parties agreed on a price of £75
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
, but nowhere in their written correspondence did either of them explicitly mention the coronation ceremony. Henry paid a deposit of £25 to Krell for the use of the flat, but when the procession did not take place on the days originally set (on the grounds of the King’s illness), Henry refused to pay the remaining £50. Krell brought suit
Lawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
against Henry to recover the remaining balance of £50, and Henry countersued
Counterclaim
In civil procedure, a party's claim is a counterclaim if the defending party has previously made a claim against the claiming party.Examples of counterclaims include:...
to recover his deposit in the amount of £25.
Judgment
Judge Williams framed the legal question in this case as whether there was an implied condition to the contract; i.e., whether or not, at the time the contract was made, the two parties knew that the reason behind the contract was for Henry to watch the coronation procession. The principle that an implied condition which ceases to exist voids the contract stems from the case of Taylor v Caldwell, which in turn was borrowed from Roman lawRoman law
Roman law is the legal system of ancient Rome, and the legal developments which occurred before the 7th century AD — when the Roman–Byzantine state adopted Greek as the language of government. The development of Roman law comprises more than a thousand years of jurisprudence — from the Twelve...
. This principle was extended in later cases to situations in which an underlying condition that was essential to the performance of the contract (rather than simply being a necessary condition) ceases to exist.
Williams held that such a condition (in this case, the timely occurrence of the coronation proceeding) need not be explicitly mentioned in the contract itself, but rather may be inferred from the extrinsic circumstances surrounding the contract. Thus, the parol evidence rule
Parol evidence rule
The parol evidence rule is a substantive common law rule in contract cases that prevents a party to a written contract from presenting extrinsic evidence that contradicts or adds to the written terms of the contract that appears to be whole...
was inapplicable here. First, he examined the substance of the contract, and then determined whether the contract was founded on the assumption of the existence of a particular state of affairs.
Williams then determined that given the affidavits of the parties, Krell had only granted Henry a license to use the rooms for a particular purpose (watching the coronation). He analogized the situation to one in which a man hired a taxicab
Taxicab
A taxicab, also taxi or cab, is a type of vehicle for hire with a driver, used by a single passenger or small group of passengers, often for a non-shared ride. A taxicab conveys passengers between locations of their choice...
to take him to a race. If the race did not occur on the particular day the passenger had thought, he would not be discharged from paying the driver; but unlike the situation in this case, the cab did not have any special qualification, as the room here did (its view of the street). Furthermore, the cancellation of the coronation could not reasonably have been anticipated by the parties at the time the contract was made.
Romer LJ
Mark Romer, Baron Romer
Mark Lemon Romer, Baron Romer PC was a British judge.Invested to the Privy Council in 1929, he was Lord Justice of Appeal from 1929 to 1938...
said,
Stirling LJ concurred.
See also
- The MoorcockThe MoorcockThe Moorcock 14 PD 64 is a leading English contract law case, which introduced the concept of implied terms. It has been superseded by more modern approach to implied terms in recent cases such as Equitable Life Assurance Society v Hyman and Attorney General of Belize v Belize Telecom...
- Herne Bay Steamboat Co v HuttonHerne Bay Steamboat Co v HuttonHerne Bay Steamboat Co v Hutton [1903] 2 KB 683 is a case on the subject of frustration of purpose. It is one of a group of cases arising out of the same event, known as the coronation cases.-Facts:...
- Chandler v WebsterChandler v WebsterChandler v Webster [1904] 1 KB 493 is an English contract law case, concerning frustration. It is one of the many coronation cases, which appeared in the courts after King Edward VII fell ill and his coronation was postponed.-Facts:...
- Frustration in English lawFrustration in English lawFrustration in English law is an English contract law doctrine, which acts as a device to set aside contracts where an unforeseen event either renders contractual obligations impossible, or radically changes the party's principal purpose for entering into the contract...
- King Edward VII of the United Kingdom
External links
- Link to full text of case In PDF format
- Link to a summary of the case