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Contracts Law (1996 Revision) CONTRACTS LAW (1996 Revision) ENACTED by the Legislature of the Cayman Islands. PART I - Introductory\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"Short title 1. This Law may be cited as the Contracts Law (1996 Revision).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"Definition 2. In this Law \u2014 \u201ccourt\u201d means, in relation to any matter, the court or arbitrator before whom the matter falls to be determined.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"Law of contracts to be subject to this Law 3. The rules of the common law which, subject to any existing laws of the Islands, govern the formation, interpretation and discharge of contracts shall continue to have application subject to this Law. Contracts Law PART II Frustrated Contracts\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"Contracts to which this Part applies 4. Where a contract governed by the law of the Islands has become impossible of performance or been otherwise frustrated, and the parties thereto have for that reason been discharged from the further performance thereof, this Part shall have effect in relation thereto.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"Recovery of sums paid in respect of a frustrated contract 5. All sums paid or payable to any party in pursuance of the contract before the time when the parties were so discharged (in this Part referred to as \u201cthe time of discharge\u201d) shall, in the case of sums so paid, be recoverable from him as money received by him for the use of the party by whom the sums were paid, and, in the case of sums so payable, cease to be so payable: Provided that, if the party to whom the sums were so paid or payable incurred expenses before the time of discharge in, or for the purpose of, the performance of the contract, the court may, if it considers it just so to do, having regard to all the circumstances of the case, allow him to retain or, as the case may be, recover the whole or any of the sums so paid or payable, not being an amount in excess of the expenses so incurred.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Accountability for benefits received in respect of a frustrated contract 6. Where any party to the contract has, by reason of anything done by any other party thereto in, or for the purpose of, the performance of the contract, obtained a valuable benefit (other than the payment of money to which section 5 applies) before the time of discharge, there shall be recoverable from him by the said other party such sum, if any, not exceeding the value of the said benefit to the party obtaining it, as the court considers just, having regard to all the circumstances of the case and, in particular \u2014 (a) the amount of any expenses incurred before the time of discharge by the benefited party in, or for the purpose of, the performance of the contract, including any sums paid or payable by him to any other party in pursuance of the contract, and retained or recoverable by that party under section 5; and (b) the effect, in relation to the said benefit, of the circumstances giving rise to the frustration of the contract. Contracts Law (1996 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_7\", \"num\": \"7.\", \"text\": \"Computation of expenses 7. In estimating, for the purposes of section 5 or 6, the amount of any expenses incurred by any party to the contract, the court may, without prejudice to the generality of those sections, include such sums as appear to be reasonable in respect of overhead expenses and in respect of any work or services performed personally by the said party.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_8\", \"num\": \"8.\", \"text\": \"Exception of insurance receipts in certain cases 8. In considering any sums which ought to be recovered or retained under section 5 or 6 by any party to the contract, the court shall not take into account any sums which have, by reason of the circumstances giving rise to the frustration of the contract, become payable to that party under any contract of insurance unless there was an obligation to insure imposed by an express term of the frustrated contract or by any other enactment.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_9\", \"num\": \"9.\", \"text\": \"Obligations incurred for the benefit of another party 9. Where any person has assumed obligations under the contract in consideration of the conferring of a benefit by the other party to the contract upon any other person, whether a party to the contract or not, the court may, if in all the circumstances of the case it considers it just so to do, treat for the purposes of section 5 any benefit so conferred as a benefit obtained by the person who has assumed the obligations as aforesaid.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_10\", \"num\": \"10.\", \"text\": \"Exception of contracts making provision for frustration 10. Where any contract to which this Part applies contains any provision which, upon the true construction of the contract, is intended to have effect in the event of circumstances arising which operate, or would but for the said provision operate, to frustrate the contract, or is intended to have effect whether such circumstances arise or not, the court shall give effect to the said provision and shall only give effect to this Part to such extent, if any, as appears to the court to be consistent with the said provision.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_11\", \"num\": \"11.\", \"text\": \"Court may sever the performed from the unperformed parts of a contract for the purpose of this Part 11. Where it appears to the court that a part of any contract to which this Part applies can properly be severed from the remainder of the contract, being a part wholly performed before the time of discharge, or so performed except for the payment in respect of that part of the contract of sums which are or can be ascertained under the contract, the court shall treat that part of the contract as if it were a separate contract and had not been frustrated and shall treat this Part as only applicable to the remainder of that contract. Contracts Law\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_12\", \"num\": \"12.\", \"text\": \"Exception of certain classes of contract 12. This Part shall not apply to any \u2014 (a) charterparty, except a time charterparty or a charterparty by way of demise, or to any contract (other than a charterparty) for the carriage of goods by sea; (b) contract of insurance, save as is provided by section 8; or (c) contract to which section 8 of the Sale of Goods Law, 1979 [Law 12 of 1979] (which avoids contracts for the sale of specific goods which perish before the risk has passed to the buyer) applies, or to any other contract for the sale, or for the sale and delivery, of specific goods, where the contract is frustrated by reason of the fact that the goods have perished. PART III - Misrepresentation\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_13\", \"num\": \"13.\", \"text\": \"Removal of certain bars to rescission for innocent misrepresentation 13. Where a party has entered into a contract after a misrepresentation has been made to him, and \u2014 (a) the misrepresentation has become a term of the contract; or (b) the contract has been performed, or both, then, if otherwise he would be entitled to rescind the contract without alleging fraud, he shall be so entitled, subject to this Part, notwithstanding the matters mentioned in paragraphs (a) and (b).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_14\", \"num\": \"14.\", \"text\": \"Damages for misrepresentation 14. (1) Where a person has entered into a contract after a misrepresentation has been made to him by another party thereto and as a result thereof he has suffered loss, then, if the person making the misrepresentation would be liable to damages in respect thereof had the misrepresentation been made fraudulently, that person shall be so liable notwithstanding that the misrepresentation was not made fraudulently unless he proves that he had reasonable grounds to believe and did believe up to the time the contract was made that the facts represented were true. (2) Where a person has entered into a contract after a misrepresentation has been made to him otherwise than fraudulently, and he would be entitled, by reason of the misrepresentation, to rescind the contract, then, if it is claimed, in any proceedings arising out of the contract, that the contract ought to be or has been rescinded, the court may declare the contract subsisting and award damages in lieu of rescission, if of opinion that it would be equitable so to do, having regard to the nature of the misrepresentation and the loss that would be Contracts Law (1996 Revision) caused by it if the contract were upheld, as well as to the loss that rescission would cause to the other party. (3) Damages may be awarded against a person under subsection (2) whether or not he is liable to damages under subsection (1), but where he is so liable any award under subsection (2) shall be taken into account in assessing his liability under subsection (1).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_15\", \"num\": \"15.\", \"text\": \"Avoidance of certain provisions excluding liability for misrepresentation 15. If any agreement (whether made before or after the 7th May, 1979) contains a provision which would exclude or restrict any \u2014 (a) liability to which a party to a contract may be subject by reason of any misrepresentation made by him before the contract was made; or (b) remedy available to another party to the contract by reason of such misrepresentation, that provision shall be of no effect except to the extent, if any, that, in any proceedings arising out of the contract, the court may allow reliance on it as being fair and reasonable in the circumstances of the case. PART IV - Miscellaneous\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_16\", \"num\": \"16.\", \"text\": \"Saving of certain past transactions 16. 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Sections\n\nc\nRevised as at 13th day of August, 1996\nPage 3\n\nCAYMAN ISLANDS\n\nCONTRACTS LAW\n(1996 Revision)\nArrangement of Sections\nSection\nPage\nPART I - Introductory\n1.\nShort title ...................................................................................................................................5\n2.\nDefinition ...................................................................................................................................5\n3.\nLaw of contracts to be subject to this Law ..................................................................................5\nPART II Frustrated Contracts\n4.\nContracts to which this Part applies ...........................................................................................6\n5.\nRecovery of sums paid in respect of a frustrated contract ..........................................................6\n6.\nAccountability for benefits received in respect of a frustrated contract .......................................6\n7.\nComputation of expenses ..........................................................................................................7\n8.\nException of insurance receipts in certain cases ........................................................................7\n9.\nObligations incurred for the benefit of another party ...................................................................7\n10.\nException of contracts making provision for frustration...............................................................7\n11.\nCourt may sever the performed from the unperformed parts of a contract for the purpose\nof this Part .................................................................................................................................7\n12.\nException of certain classes of contract .....................................................................................8\nPART III - Misrepresentation\n13.\nRemoval of certain bars to rescission for innocent misrepresentation ........................................8\n14.\nDamages for misrepresentation .................................................................................................8\n15.\nAvoidance of certain provisions excluding liability for misrepresentation ....................................9\n\nArrangement of Sections\nContracts Law\n\nPage 4\nRevised as at 13th day of August, 1996\nc\n\nPART IV - Miscellaneous\n16.\nSaving of certain past transactions ............................................................................................ 9\n17.\nApplication to the Crown ............................................................................................................ 9\n\nContracts Law (1996 Revision)\nSection 1\n\nc\nRevised as at 13th day of August, 1996\nPage 5\n\nCAYMAN ISLANDS\n\nCONTRACTS LAW\n(1996 Revision)\nENACTED by the Legislature of the Cayman Islands.\nPART I - Introductory\n1.\nShort title\n1.\nThis Law may be cited as the Contracts Law (1996 Revision).\n2.\nDefinition\n2.\nIn this Law \u2014\n\u201ccourt\u201d means, in relation to any matter, the court or arbitrator before whom\nthe matter falls to be determined.\n3.\nLaw of contracts to be subject to this Law\n3.\nThe rules of the common law which, subject to any existing laws of the Islands,\ngovern the formation, interpretation and discharge of contracts shall continue to\nhave application subject to this Law.\n\nSection 4\nContracts Law\n\nPage 6\nRevised as at 13th day of August, 1996\nc\n\nPART II Frustrated Contracts\n4.\nContracts to which this Part applies\n4.\nWhere a contract governed by the law of the Islands has become impossible of\nperformance or been otherwise frustrated, and the parties thereto have for that\nreason been discharged from the further performance thereof, this Part shall have\neffect in relation thereto.\n5.\nRecovery of sums paid in respect of a frustrated contract\n5.\nAll sums paid or payable to any party in pursuance of the contract before the time\nwhen the parties were so discharged (in this Part referred to as \u201cthe time of\ndischarge\u201d) shall, in the case of sums so paid, be recoverable from him as money\nreceived by him for the use of the party by whom the sums were paid, and, in the\ncase of sums so payable, cease to be so payable:\nProvided that, if the party to whom the sums were so paid or payable incurred\nexpenses before the time of discharge in, or for the purpose of, the performance of\nthe contract, the court may, if it considers it just so to do, having regard to all the\ncircumstances of the case, allow him to retain or, as the case may be, recover the\nwhole or any of the sums so paid or payable, not being an amount in excess of the\nexpenses so incurred.\n6.\nAccountability for benefits received in respect of a frustrated contract\n6.\nWhere any party to the contract has, by reason of anything done by any other party\nthereto in, or for the purpose of, the performance of the contract, obtained a\nvaluable benefit (other than the payment of money to which section 5 applies)\nbefore the time of discharge, there shall be recoverable from him by the said other\nparty such sum, if any, not exceeding the value of the said benefit to the party\nobtaining it, as the court considers just, having regard to all the circumstances of the\ncase and, in particular \u2014\n(a)\nthe amount of any expenses incurred before the time of discharge by the\nbenefited party in, or for the purpose of, the performance of the contract,\nincluding any sums paid or payable by him to any other party in\npursuance of the contract, and retained or recoverable by that party under\nsection 5; and\n(b) the effect, in relation to the said benefit, of the circumstances giving rise\nto the frustration of the contract.\n\nContracts Law (1996 Revision)\nSection 7\n\nc\nRevised as at 13th day of August, 1996\nPage 7\n\n7.\nComputation of expenses\n7.\nIn estimating, for the purposes of section 5 or 6, the amount of any expenses\nincurred by any party to the contract, the court may, without prejudice to the\ngenerality of those sections, include such sums as appear to be reasonable in respect\nof overhead expenses and in respect of any work or services performed personally\nby the said party.\n8.\nException of insurance receipts in certain cases\n8.\nIn considering any sums which ought to be recovered or retained under section 5 or\n6 by any party to the contract, the court shall not take into account any sums which\nhave, by reason of the circumstances giving rise to the frustration of the contract,\nbecome payable to that party under any contract of insurance unless there was an\nobligation to insure imposed by an express term of the frustrated contract or by any\nother enactment.\n9.\nObligations incurred for the benefit of another party\n9.\nWhere any person has assumed obligations under the contract in consideration of\nthe conferring of a benefit by the other party to the contract upon any other person,\nwhether a party to the contract or not, the court may, if in all the circumstances of\nthe case it considers it just so to do, treat for the purposes of section 5 any benefit so\nconferred as a benefit obtained by the person who has assumed the obligations as\naforesaid.\n10.\nException of contracts making provision for frustration\n10. Where any contract to which this Part applies contains any provision which, upon\nthe true construction of the contract, is intended to have effect in the event of\ncircumstances arising which operate, or would but for the said provision operate, to\nfrustrate the contract, or is intended to have effect whether such circumstances arise\nor not, the court shall give effect to the said provision and shall only give effect to\nthis Part to such extent, if any, as appears to the court to be consistent with the said\nprovision.\n11.\nCourt may sever the performed from the unperformed parts of a contract\nfor the purpose of this Part\n11. Where it appears to the court that a part of any contract to which this Part applies\ncan properly be severed from the remainder of the contract, being a part wholly\nperformed before the time of discharge, or so performed except for the payment in\nrespect of that part of the contract of sums which are or can be ascertained under the\ncontract, the court shall treat that part of the contract as if it were a separate contract\nand had not been frustrated and shall treat this Part as only applicable to the\nremainder of that contract.\n\nSection 12\nContracts Law\n\nPage 8\nRevised as at 13th day of August, 1996\nc\n\n12.\nException of certain classes of contract\n12. This Part shall not apply to any \u2014\n(a)\ncharterparty, except a time charterparty or a charterparty by way of\ndemise, or to any contract (other than a charterparty) for the carriage of\ngoods by sea;\n(b) contract of insurance, save as is provided by section 8; or\n(c)\ncontract to which section 8 of the Sale of Goods Law, 1979 [Law 12 of\n1979] (which avoids contracts for the sale of specific goods which perish\nbefore the risk has passed to the buyer) applies, or to any other contract\nfor the sale, or for the sale and delivery, of specific goods, where the\ncontract is frustrated by reason of the fact that the goods have perished.\nPART III - Misrepresentation\n13.\nRemoval of certain bars to rescission for innocent misrepresentation\n13. Where a party has entered into a contract after a misrepresentation has been made to\nhim, and \u2014\n(a)\nthe misrepresentation has become a term of the contract; or\n(b) the contract has been performed,\nor both, then, if otherwise he would be entitled to rescind the contract without\nalleging fraud, he shall be so entitled, subject to this Part, notwithstanding the\nmatters mentioned in paragraphs (a) and (b).\n14.\nDamages for misrepresentation\n14. (1) Where a person has entered into a contract after a misrepresentation has been\nmade to him by another party thereto and as a result thereof he has suffered\nloss, then, if the person making the misrepresentation would be liable to\ndamages in respect thereof had the misrepresentation been made fraudulently,\nthat person shall be so liable notwithstanding that the misrepresentation was\nnot made fraudulently unless he proves that he had reasonable grounds to\nbelieve and did believe up to the time the contract was made that the facts\nrepresented were true.\n(2) Where a person has entered into a contract after a misrepresentation has been\nmade to him otherwise than fraudulently, and he would be entitled, by reason\nof the misrepresentation, to rescind the contract, then, if it is claimed, in any\nproceedings arising out of the contract, that the contract ought to be or has\nbeen rescinded, the court may declare the contract subsisting and award\ndamages in lieu of rescission, if of opinion that it would be equitable so to do,\nhaving regard to the nature of the misrepresentation and the loss that would be\n\nContracts Law (1996 Revision)\nSection 15\n\nc\nRevised as at 13th day of August, 1996\nPage 9\n\ncaused by it if the contract were upheld, as well as to the loss that rescission\nwould cause to the other party.\n(3) Damages may be awarded against a person under subsection (2) whether or\nnot he is liable to damages under subsection (1), but where he is so liable any\naward under subsection (2) shall be taken into account in assessing his liability\nunder subsection (1).\n15.\nAvoidance of certain provisions excluding liability for misrepresentation\n15. If any agreement (whether made before or after the 7th May, 1979) contains a\nprovision which would exclude or restrict any \u2014\n(a)\nliability to which a party to a contract may be subject by reason of any\nmisrepresentation made by him before the contract was made; or\n(b) remedy available to another party to the contract by reason of such\nmisrepresentation,\nthat provision shall be of no effect except to the extent, if any, that, in any\nproceedings arising out of the contract, the court may allow reliance on it as\nbeing fair and reasonable in the circumstances of the case.\nPART IV - Miscellaneous\n16.\nSaving of certain past transactions\n16. Nothing in this Law shall affect any contract which has been discharged or any\nmatter which has been made a subject of proceedings in court before the coming\ninto operation of this Law.\n17.\nApplication to the Crown\n17. This Law is binding upon the Crown.\nPublication in revised form authorised by the Governor in Council this 13th day of\nAugust, 1996.\nMeredith Hew\nActing Clerk of Executive Council","akn_extracted_at":"2026-06-22 15:32:01.675819+00","cms_id":"1979-0011","law_type":"principal","year":"1979","number":"11","title":"Contracts Act","status":"in_force"},"provenance":{"files":[{"file_id":"4857","expr_id":"55","kind":"akn_xml","filename":"1979-0011_1996 Revision.akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/PRINCIPAL\/1979\/1979-0011\/1979-0011_1996 Revision.akn.xml","content_md5":"c37eb4260901e16bdd8cff5cf9e94f63","byte_size":"13967","http_last_modified":null,"fetched_at":"2026-06-22 15:32:02.116301+00"},{"file_id":"109","expr_id":"55","kind":"pristine_pdf","filename":"1979-0011_1996 Revision.pdf","source_url":"\/cms\/images\/LEGISLATION\/PRINCIPAL\/1979\/1979-0011\/1979-0011_1996 Revision.pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/PRINCIPAL\/1979\/1979-0011\/1979-0011_1996 Revision.pdf","content_md5":"7c65328c117c69e60127aca0f004b51f","byte_size":"367039","http_last_modified":null,"fetched_at":"2026-06-21 23:09:34.678369+00"},{"file_id":"110","expr_id":"55","kind":"working_pdf","filename":"1979-0011_1996 Revision.pdf","source_url":"\/cms\/images\/LEGISLATION\/PRINCIPAL\/1979\/1979-0011\/1979-0011_1996 Revision.pdf","storage_path":"\/Users\/q\/kyleg-data\/working\/PRINCIPAL\/1979\/1979-0011\/1979-0011_1996 Revision.pdf","content_md5":"7c65328c117c69e60127aca0f004b51f","byte_size":"367039","http_last_modified":null,"fetched_at":"2026-06-21 23:09:34.678369+00"}],"paragraph_count":9,"latest_history":null},"quality":{"expr_id":"55","doc_id":"55","quality_state":"needs_review","quality_score":"84","needs_human_review":"t","deterministic_categories":"{duplicate_text,page_header_footer_noise}","llm_categories":"{truncated_text,other}","repair_actions":"{collapse_duplicate_text,manual_review,reextract_full_text,strip_page_furniture}","finding_severity_counts":"{\"low\": 1, \"medium\": 1}","finding_summary":"Sample ends with an omission marker; likely truncation at Section 9. 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