New South Wales Consolidated Acts

FRUSTRATED CONTRACTS ACT 1978 - SECT 15

15 Adjustment by court

(1) Where the court is satisfied that the terms of a frustrated contract or the events which have occurred are such that, in respect of the contract:

(a) Divisions 1 and 2 are manifestly inadequate or inappropriate,

(b) application of Divisions 1 and 2 would cause manifest injustice, or

(c) application of Divisions 1 and 2 would be excessively difficult or expensive,

the court may, by order, exclude the contract from the operation of Divisions 1 and 2 and, subject to subsection (8), may, by order, substitute such adjustments in money or otherwise as it considers proper.

(2) Orders which the court may make under subsection (1) include:

(a) orders for the payment of interest, and

(b) orders as to the time when money shall be paid.

(3) In addition to its jurisdiction under subsections (1) and (2), the Supreme Court or the District Court may, for the purposes of this section, make orders for:

(a) the making of any disposition of property,

(b) the sale or other realisation of property,

(c) the disposal of the proceeds of sale or other realisation of property,

(d) the creation of a charge on property in favour of any person,

(e) the enforcement of a charge so created,

(f) the appointment and regulation of the proceedings of a receiver of property, and

(g) the vesting of property in any person.

(4) Sections 78 and 79 of the Trustee Act 1925 apply to a vesting order, and to the power to make a vesting order, under subsection (3).

(5) Section 78 (2) of the Trustee Act 1925 applies to a vesting order under subsection (3) as if subsection (3) were included in the provisions of Part 3 of that Act.

(6) In relation to a vesting order of the District Court, sections 78 and 79 of the Trustee Act 1925 shall be read as if "Court" in those sections meant the District Court.

(7) Subsections (2) to (6) do not limit the generality of subsection (1).

(8) This section does not authorise the Local Court to give a judgment otherwise than for the payment of money.