Which of the following is true regarding the consequences of frustration under the Law Reform (Frustrated Contracts) Act 1943?
A) Parties can recover money paid before the frustrating event (even where there has been performance of a part of the consideration), as well as non-monetary benefits conferred.
B) The contract is invalidated from the start.
C) It is necessary to show that the consideration has totally failed before parties can recover money paid before the frustrating event.
D) The parties can only recover monetary benefits conferred to the other party prior to the frustrating event.

Question

Quizplus · Accepted Answer

Under the Law Reform (Frustrated Contracts) Act 1943, parties can recover money paid before the frustrating event, as well as non-monetary benefits conferred, even if there has been some performance. This act does not invalidate the contract from the start (void ab initio) but rather allows for the recovery of prepayments and benefits conferred in anticipation of the contract's completion.

Which of the Following Is True Regarding the Consequences of Frustration