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Contract and Commercial Law Act 2017

Contracts legislation - Frustrated contracts - Money paid or payable

61: Money paid may be recovered and money payable ceases to be payable

You could also call this:

“You can get back money you already paid and don't have to pay money you owed when a contract ends”

If you pay money to someone under a contract before it’s cancelled, you can get that money back. The person who received the money has to give it back to you because it’s now seen as money they got for your use.

If you were supposed to pay money to someone under the contract before it was cancelled, you don’t have to pay it anymore. The money that was due is no longer owed.

This rule applies to money that was paid or supposed to be paid before the contract ended. It helps make sure things are fair when a contract is cancelled.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844139.

Topics:
Money and consumer rights > Consumer protection Business > Fair trading
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60: Application, or

"This part explains when you don't have to follow a contract anymore because it's too hard or impossible"

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62: Court may allow party who has incurred expenses to retain or recover money, or

"Court can let you keep or get back money you spent on an unfinished job"

Part 2 Contracts legislation
Frustrated contracts: Money paid or payable

61Money paid may be recovered and money payable ceases to be payable

  1. All money paid to a party (A) under the contract before the time of discharge is recoverable from A as money received by A for the use of the party who paid it.

  2. All money payable to a party under the contract before the time of discharge ceases to be payable.

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