Absolute Contractual Liability CASES
In English law, absolute contractual liability refers to a situation where a party is obligated to perform contractual duties regardless of fault, unforeseen circumstances, or difficulties in fulfilling the obligation.
Definition and Principles
Absolute liability imposes strict compliance with contractual obligations. Parties remain liable for performance even if external events make fulfilment difficult, expensive, or commercially impractical, unless explicitly excused by contract terms.
Common Examples
- Contracts specifying guaranteed delivery dates.
- Contracts with absolute performance obligations, such as insurance or indemnities.
- Supply agreements explicitly excluding force majeure clauses.
Legal Implications
- Limited scope for claiming frustration or impossibility as a defence.
- Encourages clear contractual drafting to mitigate significant risks.
Practical Importance
Understanding absolute contractual liability ensures careful negotiation and drafting of contracts, highlighting risks of strict obligations and aiding in effective risk management.
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A tenant, dispossessed of land by an invading army, was sued for unpaid rent. The court ruled he was still liable, as he was bound by his express contractual promise. This established the historic principle of absolute contractual liability, predating modern frustration. Facts The plaintiff, Paradine, brought an action of debt against the defendant, Jane, for arrears of rent due on land that Paradine had leased to Jane for a term of years. In his defence, Jane pleaded that he had been forced off the land and prevented from taking its profits for the duration for which rent was claimed.
