The Frustrated Contracts Act 1944 is one of a number of examples of Parliament shaping contract law. In the United Kingdom in 1904 common law had established that if a contract was stopped from being fulfilled, for whatever reason, 'the loss must be where it falls'. This principle was reconsidered in the late 1930s and the UK Parliament passed a law in 1943 which gave some protection to the party that had spent money in fulfillment of the contract. The New Zealand law, passed in 1944, reproduced the UK law almost word for word.
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Te Ara - The Encyclopedia of New Zealand
Reference: New Zealand Statutes, 1944, pp. 187-190
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