§ Sir J. Mellorasked the Attorney-General whether, in view of the present special importance of the subject, he will state what action has been taken as a result of the recommendations of the Law Revision Committee, contained in Command Paper 6009, with regard to revision of the law relating to frustration of contracts?
§ The Attorney-GeneralThe recommendations of the Law Revision Committee, to which the Question relates, have not as yet been given effect to by legislation. The hon. Member will appreciate that these recommendations deal with the legal consequences which follow when a contract has been frustrated, not with the conditions which involve frustration. The Government are at present considering whether the Court should have power to modify or terminate certain contracts where special hardship, attributable to war conditions, would ensue from completion in accordance with their strict terms. Such war conditions would not, in most cases, amount to frustration. The real question, therefore, is whether relief ought now to be given on a wider basis than that of the Committee's recommendations. Any legislation for the purpose of giving such relief might include pro-1236W visions on the lines of those recommendations which, as already pointed out, are directed solely to altering the Rules which at present govern the position after a contract has been frustrated.