Frustration Flashcards
Frustration
Frustration of contract is a legal concept that allows a contract to terminate when unforeseen circumstances beyond the parties’ control arise.
Frustration test
- Unforeseen event
- Impossible or radically different
- No fault
Unforeseen event
The event that causes the frustration must be unexpected and not caused by either party.
Impossible or radically different
The event must make the contract impossible to perform or change the nature of the obligations so radically that it would be unfair to enforce the original terms.
No fault
The frustrating event cannot be due to the fault of either party.
Causes of frustration
Delay, futility, performance more onerous, self induced frustration
Delay
A delay caused by factors outside the control of either party can sometimes lead to frustration if it significantly alters the timing or purpose of the contract.
Futility
A situation where the performance of a contract becomes pointless or meaningless due to unforeseen circumstances, even though it is still technically possible to perform the obligation.
Performance more onerous
When the performance of a contract becomes more onerous—meaning more difficult, costly, or burdensome—it does not automatically lead to frustration.
Self-Induced Frustration
Where frustrating event arises from conscious act or omission. Is not frustration.