Svetlana paid an advance under a contract of sale for a unique antique in Ontario, but the performance of the contract was rendered impossible because of a terrible accident that happened during delivery. Because the seller incurred expenses while trying to deliver the antique, the court is permitted to allow the seller to keep some of the advance.

Question

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In Ontario, under the Frustrated Contracts Act, if a contract is frustrated, the court may allow the seller to retain some of the advance payment to cover expenses incurred before the frustrating event.

Svetlana Paid an Advance Under a Contract of Sale for a Unique