remedies to frustration

• remedies to frustration

  Obligations already existing must be completed but future obligations are terminated

  - This can potentially lead to some unfairness, where one party largely has performed their obligations but the other has not.  In order to seek to resolve any disparity in losses the Law Reform (Frustrated Contracts) Act 1943 was passed.
• Section 1(2) provides that:

  •       Money paid before the event is recoverable

  •       Money payable before the event ceases to be payable

  •       Expenses before discharge of the contract resulting from the frustrating event, the court may award them as damages.
• Section 1(3) provides that

  •       If one party has obtained a valuable benefit from the contract before the frustrating event, the court may order them to pay a sum in respect of it.

  •       That sum is what the court considered just, having regard to all the circumstances of the case.

  Total judicial discretion on interpretation