Notcutt v Universal Equipment Co (London) Ltd
Encyclopedia
Notcutt v Universal Equipment Co (London) Ltd [1986] ICR 414 is an English contract law
English contract law
English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...

 and UK labour law case, concerning the frustration
Frustration in English law
Frustration in English law is an English contract law doctrine, which acts as a device to set aside contracts where an unforeseen event either renders contractual obligations impossible, or radically changes the party's principal purpose for entering into the contract...

 of an agreement.

Facts

Mr Notcutt had a heart attack. The doctor said it was unlikely he would ever work again. His employers gave the statutory 12 week notice to terminate his contract, but made no payment of wages on the ground that the employee was not entitled to sick pay. Mr Notcutt sued under Employment Rights Act 1996
Employment Rights Act 1996
The Employment Rights Act 1996 is a United Kingdom Act of Parliament passed by the Conservative government to codify the existing law on individual rights in UK labour law. Previous statutes, dating from the Contracts of Employment Act 1963, included the Redundancy Payments Act 1965, the...

 section 88(1)(b) or s 89(3) which say that normal wages must be paid in the period of notice if an employee is incapable of work due to sickness. Then the employer argued the contract was frustrated.

Judgment

Dillon LJ held the contract was frustrated. He referred to Hare v Murphy Brothers Ltd where Lord Denning MR held a contract was frustrated when a man was sentenced to 12 months prison, on a supposed analogy with someone that was grievously injured an incapacitated in a road accident.

See also

  • English contract law
    English contract law
    English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...

  • Frustration in English law
    Frustration in English law
    Frustration in English law is an English contract law doctrine, which acts as a device to set aside contracts where an unforeseen event either renders contractual obligations impossible, or radically changes the party's principal purpose for entering into the contract...

  • Igbo v Johnson, Matthey Chemicals Ltd
    Igbo v Johnson, Matthey Chemicals Ltd
    Igbo v Johnson, Matthey Chemicals Ltd [1986] ICR 505 is a UK labour law case, concerning unfair dismissal, now governed by the Employment Rights Act 1996.-Facts:...

    [1986] ICR 505
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