Illustrate Frustrated Contracts Act

Question

Illustrate Frustrated Contracts Act?

Answer 1

The Frustrated Contracts Act applies in provinces like Ontario that have enacted such a statute to apportion the loss when a payment has been made or remains owing by one party. The performing party who has incurred expenses can retain or recover an amount not exceeding the payment made or due. The performing party can recover a just proportion of any valuable benefit already received by the other party regardless of whether a deposit has been paid.