Mobil Sales & Supply Corp. v Transoil (Jersey) Ltd. [1981] JLR 143 (17 December 1981)

Mobil Sales & Supply Corp. v Transoil (Jersey) Ltd. [1981] JLR 143 (17 December 1981)

A contract is not frustrated merely because performance becomes more onerous; it is only frustrated if performance is impossible. If the contracted quality of goods is unavailable, the seller must supply available goods of suitable or higher quality if no alternative exists.

Citation
[1981] JLR 143
Parties
Claimant: Mobil Sales & Supply Corp.; Defendant: Transoil (Jersey) Ltd.
Jurisdiction
Jersey
Judgment Date
17 December 1981
Procedural Posture
Contract Dispute / Judgment
Outcome
contract not frustrated
Legal Topics
Frustration of Contract, Alternative Performance, Quality of Goods
Contract Law Frustration of Contract Alternative Performance Quality of Goods

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Party arguments 2
Sign in to unlock

Parties

Mobil Sales & Supply Corp.

Claimant

Transoil (Jersey) Ltd.

Defendant

Procedural Posture

Contract Dispute / Judgment

Legal Issues

  1. 1 Whether a contract is frustrated if the contracted performance becomes more onerous but not impossible
  2. 2 Whether a seller must supply available goods of suitable or higher quality if the contracted quality is unavailable

Ratio Decidendi

A contract is not frustrated merely because performance becomes more onerous; it is only frustrated if performance is impossible. If the contracted quality of goods is unavailable, the seller must supply available goods of suitable or higher quality if no alternative exists.

Court Disposition

contract not frustrated