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Frustrated contracts: the law is on your side over holiday refunds

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We have been deluged with emails about refunds in the coronavirus crisis. A barrister gives his view

Over the last few weeks Guardian Money has highlighted many excuses made by the travel industry, particularly airlines, when refusing refunds for Covid-19-related cancellations. One reader even wrote in about a battle for a refund from a hotel on a Scottish island to which non-residents cannot now take ferries.

There will doubtless be many cases taken on the consequences of the virus but the present law is quite simple. Once a contract becomes impossible to perform, due to the fault of neither party, it is treated as frustrated, meaning neither party is bound and any advance payments, including deposits, have to be refunded.

Frustration does not just depend on illegality

Related: Trust in airlines and holiday firms plummets, says Which?

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