Accrued rights CASES

In English contract law, accrued rights are legal entitlements or obligations that have arisen before a contract ends—whether through termination or frustration—and which remain enforceable despite the contract’s conclusion.

Definition and Principles

Accrued rights ensure that parties are protected for commitments fulfilled or losses suffered before contractual discharge. These may include payments already due, benefits earned, or liabilities incurred prior to termination or frustrating events.

Case Example: Chandler v Webster (1904)

In this coronation-related case, a room was let for viewing the procession, and the hirer paid part of the fee in advance. When the event was frustrated by the King’s illness, the court held that obligations arising before frustration remained enforceable. The hirer was not entitled to recover the payment, and the remaining balance was still due—demonstrating that accrued rights survive even if future performance becomes impossible.

Purpose and Importance

Accrued rights uphold fairness by ensuring that obligations or entitlements incurred before a contract’s end are honoured. This stability discourages unjust enrichment or loss resulting merely from the contract’s interruption.

Practical Considerations

• Contract drafting: It is standard to include clauses confirming that accrued rights survive termination.
• Frustration scenarios: Even absent explicit clauses, courts generally uphold accrued rights arising before frustration.
• Termination contexts: Whether the contract ends by breach, frustration, or mutual agreement, accrued rights—like payment for services already rendered—remain enforceable unless expressly excluded.