Level 1: Recognition · Question 1 of 2
✎ In review — This case summary has not yet been verified by a qualified lawyer and may contain errors. Use it as a study and practice aid only, it is not legal advice and is not a definitive statement of the law. Always check primary sources before relying on it.A buyer pays a £5,000 advance under a contract that is later frustrated. Leaving aside any express term dealing with the event, what is the correct starting position in English law as to recovery of that £5,000? A. It is recoverable under s.1(2) of the Law Reform (Frustrated Contracts) Act 1943, subject to the court's discretion to allow the payee to retain sums in respect of expenses incurred before discharge.B. It is irrecoverable because, on frustration, the loss lies where it falls at the moment of discharge.C. It is recoverable in full as of right, with no allowance permitted for the payee's expenses.D. It is recoverable only if there has been a total failure of consideration.