The Law Reform (Frustrated Contracts) Act 1943

    Cards (7)

    • Automatic discharge of contract - frustration results in the automatic discharge of the contract, The parties are released from their future obligations under the contract
    • Recovery of Money paid - Money paid before the frustrating event may be recoverable. The party who has paid money under the contract may be entitled to recover that sum
    • Recovery of benefits Conferred - if one party has already performed some part of the contract before frustration, and the other party has received a benefit, the party who performed may be entitled to recover the value of that benefit
    • Apportionment of Sums Due - if part of the contract has been performed before frustration, the parties may be entitled to apportion the sums due based on the work or services rendered up to the point of frustration
    • Exclusion or limitation of liability:
      • The contract may contain clauses that exclude or limit liability in the event of frustration
      • The enforceability of such clauses depends on their wording and the circumstances of the case
    • Losses incurred before frustration:
      • Losses incurred before the frustrating event are generally not recoverable
      • Each party usually bears its own losses up to the point of frustration
    • Insurance claims
      • If the parties have insurance that covers the type of frustrating events, they may be able to make claims under the insurance policies
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