Taylor v Caldwell [1869] 3 B & S 826 and the Sanctity of a Contract

Taylor wanted to rent the Music Hall but it burnt down.

They agreed on contractual terms but the contract did not contain any agreement on how to proceed if the music hall were to burn down.

Caldwell couldn’t fulfill his contractual obligation to rent it to Taylor.

Taylor sued for breach of contract. But it failed. Due to the doctrine of frustration.

As opposed to the outcome of Paradine v Jane, The principle of sanctity of a contract lost some of its harshness and made way for the doctrine of frustration.

Since the Music Hall burnt down, Caldwell is released from the contractual obligation by way of frustration as it is impossible to perform the obligation.

Writer: s.psycho