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6. A contract can be frustrated if it turns out to be more expensive

  • False
  • True

7. Self-induced frustration is no frustration

  • True
  • False

8. A common law rule of the effect of frustration is that the loss "lays where it fell"

  • True
  • False

9. What does the case of Appleby -v- Myers illustrate?

  • Any expenditure cannot be recouped or recovered in the event of frustration
  • That monies paid are not recoverable

10. Which case illustrates the point that monies paid are not recoverable?

  • Gamerco SA -v- ICM
  • Fibrosa Spolka Akcyjina -v- Fairburn Lawson Combe Barbour Ltd
  • Chandler -v- Webster
  • Appleby -v- Myers

11. By which case has this decision subsequently been overruled?

  • Gamerco SA -v- ICM
  • BP Exploration Co (Libya) -v- Hunt (No. 2)
  • Fibrosa Spolka Akcyjina -v- Fairburn Lawson Combe Barbour Ltd
  • Chandler -v- Webster

12. What statute regulates the effect of frustration?

  • The Frustrated Contracts Act 1956
  • The Law Reform (Frustrated Contracts) Act 1943
  • The Frustration Act 1962

13. s1 (2) states that money paid before frustration is recoverable, money due but not paid before frustration ceases to be payable and reasonable expenses are recoverable

  • True
  • False

14. Which case illustrates the application of s1 (2)?

  • Chandler -v- Webster
  • Gamerco SA -v- ICM
  • BP Exploration Co (Libya) -v- Hunt (No 2)
  • Fibrosa Spolka Akcyjina -v- Fairburn Lawson Combe Barbour Ltd

15. s1 (3) states that when one party has received a "valuable benefit" under the contract and it is then frustrated, he must pay a just sum for that

  • True
  • False