Doctrine of Frustration

In one sentence

A contract is excused when unforeseen events make its purpose impossible to achieve.

Plain English

The doctrine of frustration says that if something happens after a contract is signed—something neither party caused or foresaw—that makes the whole point of the contract impossible, then performance may be excused. This is broader than just making performance physically impossible; it covers situations where the contract's basic purpose is destroyed. For example, if you rent a hall for a parade that gets canceled, the purpose is frustrated even though you could technically use the hall for something else.

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Example

A couple books a wedding venue for June 15th. Two weeks before, the venue burns down completely. The doctrine of frustration may excuse both parties from the contract, since the specific purpose—holding a wedding in that venue on that date—is now impossible.

Used in a sentence

“The doctrine of frustration allowed the theater to cancel the lease when the building was condemned as unsafe.”

Related terms

Doctrine of Impossibility

A party is excused from contract performance when it becomes physically or legally impossible.

Doctrine of Impracticability

Performance is excused when it becomes extremely difficult or expensive due to unforeseen events.

Force Majeure Event

An unforeseeable, uncontrollable event that prevents contract performance.

Discharge of Contract

The release of both parties from their contractual obligations.

Performance

The act of doing what a contract requires, such as delivering goods or paying money.

Contract

A legally binding agreement between two or more parties to do or not do something.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.