Law Reform (Frustrated Contracts).
[CAP. 25
CHAPTER 25.
LAW REFORM (FRUSTRATED CONTRACTS).
To amend the law relating to frustration of contracts.
[18th June, 1948.]
Originally 26 of 1948.
1. This Ordinance may be cited as the Law Reform (Frustrated Contracts) Ordinance.
2. In this Ordinance—
"court" includes any arbitrator by or before whom the matter falls to be determined.
3. (1) Where a contract governed by law applicable to the Colony has become impossible of performance or been otherwise frustrated, and the parties thereto have for that reason been discharged from the further performance of the contract, the following provisions of this section shall, subject to the provisions of section 4, have effect in relation thereto.
(2) All sums paid or payable to any party in pursuance of the contract before the time when the parties were so discharged (in this Ordinance referred to as the time of discharge) shall, in the case of sums so paid, be recoverable from him as money received by him for the use of the party by whom the sums were paid, and, in the case of sums so payable, cease to be so payable: Provided that, if the party to whom the sums were so paid or payable incurred expenses before the time of discharge in, or for the purpose of, the performance of the contract, the court may, if it considers it just to do so having regard to all the circumstances of the case, allow him to retain or, as the case may be, recover the whole or any part of the sums so paid or payable, not being an amount in excess of the expenses so incurred.
(3) Where any party to the contract has, by reason of anything done by any other party thereto in, or for the purpose of, the performance of the contract, obtained a valuable benefit (other than a payment of money to which the last foregoing subsection applies) before the time of discharge, there shall be recoverable from him by the said other party such sum (if any), not exceeding the value of the said benefit to the party obtaining it, as the court considers just, having regard to...
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Interpretation.
Adjustment of rights and liabilities of frustrated parties to contracts.