Metropolitan Water Board v Dick, Kerr and Co Ltd

Facts

Dick, Kerr & Co agreed to build a reservoir in six years for the Metropolitan Water Board (London). The contract said that Dick, Kerr & Co should apply to the engineer for an extension of time in the event of delay ‘whatsoever and howsoever occasioned’. Dick, Kerr & Co were then required to stop work and sell their plant because of a Government Order.

Judgment

The House of Lords held that the contract was frustrated, because the delay clause was intended to cover temporary difficulties, and not such fundamental changes in the contract’s nature.