Metropolitan Water Board v Dick, Kerr & Co Ltd

Metropolitan Water Board v Dick Kerr and Co Ltd [1918] AC 119 is an English contract law case, concerning the frustration of an agreement.

Facts
In July 1914, Dick, Kerr & Co agreed to build a reservoir in six years for the Metropolitan Water Board (London). The contract said that Dick, Kerr & Co should apply to the engineer for an extension of time in the event of delay ‘whatsoever and howsoever occasioned’.

Two years later on 21 February 1916, due to the war, the Ministry of Munitions ordered Dick, Kerr & Co to stop work and sell their plant. The MWB subsequently sued Dick Kerr to complete the reservoir.

Judgment
The House of Lords held that the contract was frustrated, because the delay clause was intended to cover temporary difficulties, and not such fundamental changes in the contract’s nature.