| McRae v Commonwealth Disposals Commission | |
|---|---|
| Court | High Court of Australia |
| Citation(s) | [1951] HCA 79, (1951) 84 CLR 377 |
| Keywords | |
| Frustration | |
McRae v Commonwealth Disposals Commission [1951] HCA 79 is an Australian contract law case, relevant for English contract law, concerning the common mistake about the possibility of performing an agreement.
Contents |
The Commonwealth Disposals Commission sold McRae a shipwreck of a tanker on the Jourmaund Reef, supposedly containing oil. No tanker ever existed. CDC argued there was no liability for breach of contract because it was void given the subject matter did not exist.
High Court of Australia held that McRae succeeded in damages for breach of contract. They rejected the contract was void because CDC had promised the tanker did exist. Courturier v Hastie was distinguished because there the parties had both shared the assumption the corn existed, but here CDC had actually promised the tanker existed and therefore had assumed the risk that it did not.