Law Reform (Frustrated Contracts) Act

Link to law: http://www.moj.gov.jm/laws/law-reform-frustrated-contracts-act
Published: 1968-02-23

LAW REFORM (FRUSTRATED CONTRACTS) r

3.-(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
been discharged from the further performance of the con-

Act
9 of 1968.

THE LAW REFORM (FRUSTRATED
CONTRACTS) ACT

Adjuatmmt
of lights
md

frustratd
M U h C l k

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(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 sub-
section (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 over-
head expenses and in respect of any work or services per-
formed personally by the said party.

(5) In considering whether any sum ought to be
recovered or retained under the foregoing provisions of this
section by any party to the contract, the murt shall not
take into account any sums which have, by reason of the
circumstances giving rise to the frustration of the contract,
become payable to that party under my contract of

idusion of h i m page is authorized by LN. 480119731

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LAW REFORM (FRUSTRATED CONTRACTS) 3

insurance unless there was an obligation to insure imposed
by an express term of the frustrated contract or by or under
any enactment.

(6) Where any person has assumed obligations under
the contract in consideration of the conferring of a benefit
by any other party to the contract upon any other person,
whether a party to the contract or not, the court may, if
in all the circumstances of the case it considers it just to do
so, treat for the purposes of subsection (3) any benefit so
conferred as a benefit obtained by the person who has
assumed the obligations as aforesaid.

before or after the 23rd February, 1968, as respects which pp~cp-
the time of discharge is on or after the said date, but not to K&
contracts as respects which the time of discharge is before
the said date.

(2) This Act shall apply to contracts to which the
Crown is a part in like manner as to contracts between
subjects.

(3) Where any contract to which thii Act applies con-
tains 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 section 3 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 Act 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 con-

4 .41 ) T h i s Act shall apply to contracts whether made poviaioar

Dae idusion of thia pnge is authorized by LN. 480/19731

4 LAW REFORM (FRUSTRATED CONTRACTS)

tract 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 section 3 as only applicable to the remainder
of that contract.

(5) This Act shall not apply-
(a) to any charterparty, except a time charterparty or

a charterparty by way of demise, or to any con-
tract (other than a charterparty) for the carriage
of goods by sea; or

(b) to any contract of insurance, save as is provided
by subsection (5) of section 3; or

(c) to any contract to which section 8 of the Sale of
Goods Act 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.

P l c inclusion of thii page is suthwized by LN. 480/1973]
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