What is the ratio in Taylor v Caldwell?

The ratio is that contracts are frustrated and both parties discharged when supervening events make performance impossible without fault, provided the continued existence of the subject matter was essential to performance.

What did the court decide in Taylor v Caldwell?

The court decided that Caldwell was not liable for breach when the music hall was destroyed by fire, as this made contract performance impossible through no fault of either party.

Why is Taylor v Caldwell important for contract law?

It established the doctrine of frustration, providing a fundamental principle for when parties can be excused from contractual obligations due to unforeseen supervening events.

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