Monday, 1 April 2013

Law Reform (Frustrated Contracts) Act 1943

Statutory intvention

  • Law Reform (Frustrated Contracts) Act 1943

  • Created to deal with hardships of Paradine, but itself created some hardships

Act deals with 3 very specific areas:

  1. Recovery of money paid in advance of the contract 
    1. section 1(2)  confirms that money paid can be recoverable - Fibrosa
    2. Money due ceases to be payable - Taylor v Caldwell - Appleby v Myer 1967, where any benefit was destroyed by fire, would not give rise to recovery under this subsection. 

  1. Under 1(2) the court also has discretion to reward a party who has carried out work under contract 
  2. recovery for partial performance

    1. under s1(3) the court can allow recovery for paritial performance where other party has conferred a valuable benefit on the other party 

    1. this is the discretion of the court to decide what is reasonable 

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