What is the ratio in Fibrosa v Fairbairn Lawson?

Where a contract is frustrated and the payee has provided no part of the contracted benefit, there is a total failure of consideration allowing recovery of advance payments.

What did the court decide in Fibrosa v Fairbairn Lawson?

The House of Lords allowed Fibrosa to recover their £1,000 advance payment due to total failure of consideration when the contract was frustrated by war.

Why is Fibrosa v Fairbairn Lawson important for contract law?

It established the modern law on recovery of payments under frustrated contracts and directly led to the Law Reform (Frustrated Contracts) Act 1943.

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