Define: Frustration Of Purpose

Frustration of purpose is a legal doctrine that allows a party to be released from its contractual obligations when an unforeseen event occurs, making it impossible for the contract to be fulfilled in a manner consistent with the original purpose for which it was made. This doctrine typically applies when circumstances arise that were not contemplated by the parties at the time of contract formation and which fundamentally alter the nature of the contract or render its performance significantly different from what was initially intended. To successfully invoke frustration of purpose, the party seeking relief must demonstrate that the unforeseen event was beyond their control, that it was not foreseeable, and that it has made performance of the contract radically different or impossible. If frustration of purpose is established, the contract may be terminated, and the parties may be discharged from their obligations without liability for breach.

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This glossary post was last updated: 29th March, 2024.