CHAPTER 73
LAW REFORM (FRUSTRATED CONTRACTS) ACT

Arrangement of Sections

   Section

   1.   Short title

   2.   Interpretation

   3.   Adjustments of rights and liabilities of parties to frustrated contracts

   4.   Provisions as to application of this Act

AN ACT

to amend the law relating to the frustration of contracts; and to provide for matters incidental thereto.

[19th July, 1963]

Act 27 of 1963,

GN 497 of 1964,

SI 72 of 1964.

1. Short title

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

2. Interpretation

In this Act, unless the context otherwise requires—

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

3. Adjustments of rights and liabilities of parties to frustrated contracts

   (1) Where a contract which is governed as to its essential validity by the law of Zambia 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.

   (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.