Fibrosa v Fairburn [1943]

Respondents agreed to manufacture machines and deliver
them to Poland.
However before manufacture complete that part of
Poland occupied by German Army.
Against law to trade with enemy.
Hence contract frustrated.
Held that party who has paid money, but has received
no part of bargained-for performance (as was position of Polish company in this
case), is entitled to recover it, for consideration has totally failed.
[Problems:
1.  Cannot recover
for partial failure.
2.  Party who
has to return money might have incurred expenses for purpose of performance,
but these cannot be set off against money to be repaid]