What is the common law position

Question

What is the common law position, in provinces without a Frustrated Contracts Act?

Answer 1

In provinces without a Frustrated Contracts Act, the common law position is that:

• The contract is discharged, and both parties are freed from further performance under its terms; any performance already due under the contract is still enforceable.

• If the buyer has paid a deposit for goods/services, he can recover the deposit as long as he has received no benefits from the other party when the frustrating event occurs. If he has received even the slightest benefit, the deposit is forfeited.