All Legislation
Contract Law
c. 40
Law Reform (Frustrated Contracts) Act 1943
View on legislation.gov.ukSummary
The Law Reform (Frustrated Contracts) Act 1943 reformed the consequences of frustration of contracts. At common law (Chandler v Webster), money paid before frustration was irrecoverable. The Act allows recovery of money paid and a just sum for expenses incurred.
Key Points
- Money paid before frustrating event is recoverable (s.1(2))
- Court may allow the payee to retain expenses incurred before frustration
- Where a party has obtained a valuable benefit before frustration, the other may recover a just sum (s.1(3))
- Does not apply to certain contracts: insurance, carriage of goods by sea, sale of specific goods that perish