LAW REFORM (FRUSTRATED CONTRACTS) ACT

ARRANGEMENT OF SECTIONS

   1   Short title

   2   Interpretation

   3   Adjustment of rights and liabilities of parties to frustrated contracts

   4   Provisions as to application of this Act

 

THE LAW REFORM (FRUSTRATED CONTRACTS) ACT

[Date of Commencement: 23rd February, 1968]

Act 9 of 1968.

1   Short title

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

2   Interpretation

   In this Act-

   "court" means, in relation to any matter, the Court or arbitrator by or before whom the matter falls to be determined.

3   Adjustment of rights and liabilities of parties to frustrated contracts

   (1) Where a contract governed by the law of Jamaica 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.

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   (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 Act 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 subsection (2) 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 all the circumstances of the case and, in particular-

   (a)   the amount of any expenses incurred before the time of discharge by the benefited party in, or for the purpose of, the performance of the contract, including any sums paid or payable by him to any other party in pursuance of the contract and retained or recoverable by that party under subsection (2); and

   (b)    the effect, in relation to the said benefit, of the circumstances giving rise to the frustration of the contract.

   (4) In estimating, for the purposes of the foregoing provisions of this section, the amount of any expenses incurred by any party to the contract, the Court may, without prejudice to the generality of the said provisions, include such sum as appears to be reasonable in respect of overhead expenses and in respect of any work or services performed personally by the said party

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