Law Reform (Frustrated Contracts) Act 1943 s 1(2) extends the decision in Fibrosa by providing that money paid before the frustrating event (the time of discharge) can be recovered, even though the failure of consideration may only be partial. It further provides that money payable (i.e. which became due on a date prior to the frustrating event but was not in fact paid) ceases to be payable.

However, s 1(2) also gives the court a discretionary power to order such retention or recovery of money as it thinks just in all the circumstances to account for expenses incurred by the payee. The expenses incurred by the payee must be directly related to an attempt to perform the contract. The amount retained or recovered cannot exceed 1. the actual expenses incurred; and 2. the amount paid or payable prior to the frustrating event. It is for the payee to establish that the expenses were incurred and that it is just for the court to deduct them from the sums paid or payable to him before the frustrating event.