Taylor v Caldwell [1863] EWHC QB J1

Taylor & Lewis intended to rent out the Surrey Music Hall, which was owned by Caldwell, for a cost of 100 pounds per day.
They planned to host four extravagant concerts with all kinds of entertainment, such as the most famous opera singer of the time and gun shooting.
Unfortunately, the Music Hall burned down before the concerts could happen.
There was nothing in the contract which said what should happen in such an event.
Taylor & Lewis sued Caldwell for failing to provide the concert hall as promised.

In this case, Blackburn J laid the earliest foundations for what would come to be known as the doctrine of impossibility.
He held that there must be some implied term in the contract that a “particular specified thing” (in this case, the Music Hall) would continue to exist for the contract to be carried out.
Blackburn J stated that the parties must have contracted on this basis, and therefore – in the absence of any express term to the contrary – performance of the contract must be excused.
This approach was consistent with the civil codes which Blackburn J considered to be influential.
It was also consistent with the English approach to bailments – for example, where a horse that was loaned to another person died, the parties would be released from the contract (unless the contract specified otherwise).
Therefore, neither party was expected to carry out their obligations under the contract.

“The principle seems to us to be that, in contracts in which the performance depends on the continued existence of a given person or thing, a condition is implied that the impossibility of performance arising from the perishing of the person or thing shall excuse the performance.” (Blackburn J)

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