Part IAdjustment of Rights

1 Effect of Frustration

(1)Where a contract has become impossible of performance or otherwise frustrated, and the parties thereto have for that reason been discharged from the further performance of the contract, this section shall apply.

(2)All sums paid or payable to any party in pursuance of the contract before the time when the parties were so discharged shall, in the case of sums so paid, be recoverable from him as money received for the use of the party by whom the sums were paid.

2 Retention for Expenses

If the party to whom sums were paid or payable incurred expenses before the time of discharge in performance of the contract, the court may allow him to retain or recover the whole or any part of the sums, not being an amount in excess of the expenses so incurred.

Part IIGeneral

3 Citation

This Act may be cited as the Law Reform (Frustrated Contracts) Act.