Leonard Messy, a talented English footballer entered into 3 separate contracts;
Contract 1:
The first contract was to sign a 3-year deal to play for ‘Manchester Athletic’ a top English Premiership club. To secure the deal Messy paid a deposit of £25,000 to cover the necessary medical checks he needed to have done, as the contract stated this was at his own cost but would be refunded by the Club on the first day of the new football season.
Unfortunately, 1 month after the contract was signed and the £25,000 was paid by Messy, the Club suffered devastating damage from a rare storm and as such, was not able to play any football for the entire season. Messy requested that the money he had paid be returned to him. The Club refused saying that the contract with Messy was void for frustration.
Contract 2:
The second contract was for Messy to appear in a TV documentary called ‘Messy Business’ which was to be produced by a state-owned TV production company in Spain. Messy was paid 20,000 Euros as a deposit up front to secure his services and a further E20,000 would be paid once the documentary was screened. However, 3 weeks after the contract was signed, and Messy had received his E20,000, the UK tragically left the EU with no trade deal in place, and the British Government banned any British national from entering into any contracts with EU member states, and declared all existing contracts illegal. The Spanish TV company requested that Messy repay the E20,000 immediately and stated that no further money would be paid as the contract was void for frustration.
Contract 3:
The third contract Messy entered into was with a new agent to represent his interests. He paid the agent £100,000 as a deposit with the agreement that a further £50,000 would be paid monthly. However, after the disaster at Manchester Athletic and the cancellation of his TV documentary Messy decided that it would not be profitable enough to pay an agent, and he would represent his own interests. He called the agent to cancel the contract and demanded the repayment of the £100,000.
Advise Messy as to whether any or all 3 of the contracts can be terminated for Frustration, and if so, what the effect of frustration might be in relation to the deposits paid and the moneys still owing.
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