ABSTRACT
Under the common law rule, where a contract became frustrated, losses would lie where they fell. Accordingly, if one of the parties had gone some way towards the completion of his performance obligations on the date when the contract was held to be frustrated, he would be entitled to no payment in respect of his performance, even if this meant that the other party stood to gain as a result of that performance. Parliament enacted s 1(3) of the Law Reform (Frustrated Contracts) Act 1943 to deal with this situation.
