Law Reform (Frustrated Contracts).
(2) This Ordinance shall apply to contracts to which the Crown is a party in like manner as to contracts between subjects.
(3) Where any contract to which this Ordinance applies contains any provision which, upon the true construction of the contract, is intended to have effect in the event of circumstances arising which operate, or would but for the said provision operate, to frustrate the contract, or is intended to have effect whether such circumstances arise or not, the court shall give effect to the said provision and shall only give effect to the foregoing section of this Ordinance to such extent, if any, as appears to the court to be consistent with the said provision.
(4) Where it appears to the court that a part of any contract to which this Ordinance applies can properly be severed from the remainder of the contract, being a part wholly performed before the time of discharge, or so performed except for the payment in respect of that part of the contract of sums which are or can be ascertained under the contract, the court shall treat that part of the contract as if it were a separate contract and had not been frustrated and shall treat the foregoing section of this Ordinance as only applicable to the remainder of that contract.
(5) This Ordinance shall not apply-
(a) to any charterparty, except a time charterparty or a charterparty by way of demise, or to any contract (other than a charterparty) for the carriage of goods by sea; or
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(b) to any contract of insurance, save as is provided by subsection (5) of the foregoing section; or
(c) to any contract to which section 9 of the Sale of Goods Ordinance, (which avoids contracts for the sale of specific goods which perish before the risk has passed to the buyer) applies, or to any other contract for the sale, or for the sale and delivery, of specific goods, where the contract is frustrated by reason of the fact that the goods have perished.
5. Nothing in this Ordinance shall affect any settlement or agreement between the parties subsequent to the date of discharge whereby the rights and liabilities of the contracting parties fell to be determined otherwise than in accordance with the provisions of this Ordinance.
Saving for settlement or contrary agreement.
431
Law Reform (Frustrated Contracts).
(2) This Ordinance shall apply to contracts to which the Crown is a party in like manner as to contracts between subjects.
(3) Where any contract to which this Ordinance applies. contains any provision which, upon the true construction of the contract, is intended to have effect in the event of circum- stances arising which operate, or would but for the said provision operate, to frustrate the contract, or is intended to have effect whether such circumstances arise or not, the court shall give effect to the said provision and shall only give effect to the foregoing section of this Ordinance to such extent, if any, as appears to the court to be consistent with the said provision.
(4) Where it appears to the court that a part of any contract to which this Ordinance applies can properly be severed from the remainder of the contract, being a part wholly performed before the time of discharge, or so per- formed except for the payment in respect of that part of the contract of sums which are or can be ascertained under the contract, the court shall treat that part of the contract as if it were a separate contract and had not been frustrated and shall treat the foregoing section of this Ordinance as only applicable to the remainder of that contract.
(5) This Ordinance shall not apply-
(a) to any charterparty, except a time charterparty or a charterparty by way of demise, or to any contract (other than a charterparty) for the carriage of goods by sea; or
[CAP. 25
(b) to any contract of insurance, save as is provided by subsection (5) of the foregoing section; or (c) to any contract to which section 9 of the Sale of
Goods Ordinance, (which avoids contracts for the (Cap. 26). sale of specific goods which perish before the risk has passed to the buyer) applies, or to any other contract for the sale, or for the sale and delivery, of specific goods, where the contract is frustrated by reason of the fact that the goods have perished.
5. Nothing in this Ordinance shall affect any settle- ment or agreement between the parties subsequent to the date of discharge whereby the rights and liabilities of the contracting parties fell to be determined otherwise than in accordance with the provisions of this Ordinance.
Saving for or contrary
settlement
agreement.
431
M
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