The Eugenia
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''The Eugenia'' (or ''Ocean Tramp Tankers Corp v V/O Sovfracht'') 9642 QB 226 is an
English contract law English contract law is the body of law that regulates legally binding agreements 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 ...
case, concerning the
frustration In psychology, frustration is a common emotional response to opposition, related to anger, annoyance and disappointment. Frustration arises from the perceived resistance to the fulfillment of an individual's Will (philosophy), will or goal and ...
of an agreement.


Facts

The
Suez Canal The Suez Canal (; , ') is an artificial sea-level waterway in Egypt, Indo-Mediterranean, connecting the Mediterranean Sea to the Red Sea through the Isthmus of Suez and dividing Africa and Asia (and by extension, the Sinai Peninsula from the rest ...
became a "dangerous zone" as ''The Eugenia'', carrying iron and steel, sailed towards it on the way to
India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...
from
Odessa ODESSA is an American codename (from the German language, German: ''Organisation der ehemaligen SS-Angehörigen'', meaning: Organization of Former SS Members) coined in 1946 to cover Ratlines (World War II aftermath), Nazi underground escape-pl ...
(but starting in
Genoa Genoa ( ; ; ) is a city in and the capital of the Italian region of Liguria, and the sixth-largest city in Italy. As of 2025, 563,947 people live within the city's administrative limits. While its metropolitan city has 818,651 inhabitan ...
). The charterers, in breach of a "general war clause" in the contract saying dangerous zones should be avoided, sailed into
Port Said Port Said ( , , ) is a port city that lies in the northeast Egypt extending about along the coast of the Mediterranean Sea, straddling the west bank of the northern mouth of the Suez Canal. The city is the capital city, capital of the Port S ...
, thinking they could make it through the canal in time. The alternative was to sail around the
Cape of Good Hope The Cape of Good Hope ( ) is a rocky headland on the Atlantic Ocean, Atlantic coast of the Cape Peninsula in South Africa. A List of common misconceptions#Geography, common misconception is that the Cape of Good Hope is the southern tip of Afri ...
, which would have taken a long time. The ship was impounded as the canal was closed. The charterers then abandoned the contract and claimed it was frustrated. The claimant owners of the iron and steel claimed it was breach of contract.


Judgment

Lord Denning MR held that there was no frustration of the contract. First, that the charterers could not rely on any self-induced frustration (sailing into the canal) as a ground for arguing the contract was frustrated. If they had not tried the Suez canal, they would have had to sail around the Cape, but this would not have rendered the contract radically different. He said if the contract says something, "the contract must govern. There is no frustration." But if the contract says nothing, onerous or more expensive is not enough; "It must be positively unjust to hold the parties bound. It is often difficult to draw the line. But it must be done, and it is the courts to do it as a matter of law: see ''Tsakiroglou''." He said that the material factors were that the difference in time was 108 days from Genoa via the Suez and 138 days via the Cape. The goods would not be adversely affected. The only trouble was it took longer. He firmly rejected, however, that frustration can only apply where the event is unforeseen or unexpected.


See also

*
English contract law English contract law is the body of law that regulates legally binding agreements 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 ...
*
Frustration in English law Frustration is an English contract law doctrine that 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 con ...


Notes


References

* {{DEFAULTSORT:Eugenia, The Lord Denning cases Court of Appeal (England and Wales) cases 1964 in case law 1964 in British law English frustration case law