Aircraft and Shipbuilding Industries Act 1977

32 Provisions supplementary to section 31

(1) Where a notice of disclaimer is given with respect to an agreement or lease and that notice is not revoked by the arbitration tribunal, the agreement shall be deemed to be frustrated or, as the case may be, the lease shall be deemed to be surrendered, on the date on which the notice of disclaimer becomes final, and for that reason the parties thereto shall be deemed to be discharged from the further performance of their obligations under the agreement or lease.

(2) Where an agreement is deemed to be frustrated by virtue of subsection (1) above, neither—

(a) the following enactments, namely—

(i) section 2(3) of the [1943 c. 40.] Law Reform (Frustrated Contracts) Act 1943, and

(ii) section 2(3) of the [1947 c. 2 (N.I.).] Frustrated Contracts Act (Northern Ireland) 1947,

(each of which requires the court to give effect to any provision of a contract intended to operate on or notwithstanding the frustration of the contract), nor

(b) any rule of the common law of Scotland corresponding to those enactments,

shall apply to that agreement.

(3) Where, on a reference to the arbitration tribunal under section 31(7) above, the notice of disclaimer is confirmed, the arbitration tribunal shall have exclusive jurisdiction to determine claims arising under the agreement or lease in question with respect to the period before the frustration or surrender and, in the case of an agreement, any claims arising as a result of its frustration, and the tribunal may, in the case of a lease, on the application of either party thereto, make such modifications (if any) of the provisions of the lease relating to repairing obligations or any other provisions taking effect on or within a limited time before the determination of the lease as the tribunal think just.

(4) For the purposes of this section, a notice of disclaimer which is not revoked shall be deemed to become final on the following date, that is to say,—

(a) if no reference to arbitration is made under section 31(7) above, the date on which the period for making such a reference expires; and

(b) in any other case, the date on which the notice is confirmed by the arbitration tribunal.