Frustration of Purpose

From the Latin frustration (Latin: "to thwart").

In one sentence

An unforeseen event destroys the main reason for making the contract, even though performance is still possible.

Plain English

Frustration of purpose happens when something unexpected occurs that completely wipes out why you made the contract in the first place. Unlike impossibility, the actual performance is still doable—but the whole point of the deal is gone. For instance, you rent a room to watch a parade, but the parade is cancelled. You could still use the room, but the reason you rented it no longer exists. Courts may excuse performance when the purpose has been so thoroughly frustrated.

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Example

A couple books a venue for their wedding reception, but the groom is called to active military duty overseas the day before the wedding. The venue is still available and ready, but the purpose of the contract—celebrating their wedding—is frustrated.

Used in a sentence

“The court found frustration of purpose when the client's business event was cancelled and the event planner sought to be released from the contract.”

Related terms

Impossibility

A situation where performance of a contract becomes physically or legally impossible after the contract is made.

Impracticability

Performance remains theoretically possible but becomes so difficult or expensive that it's unreasonably burdensome.

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.

Rescission

Unwinding a contract entirely, returning both parties to their positions before the deal.

Modification

A change to a contract made by the parties after it's already in effect.

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.