What is FRUSTRATION OF CONTRACT?

Legal termination of a contract. Forgives non-performance. Except where contract terms override this implied legal provision, it automatically discharges the contract. It is not acceptable as an reason against foreseeable circumstances. It is not applicable contracts like insurance policies. It does occur due to unforeseen circumstances that (1) prevent achieving objectives, (2) cause illegal actions , or (3) render execution impossible. An accident, a change in law, a fire, a sickness, or third-party interference are examples of causes.

More On This Topic



Link to This Definition

Did you find this definition of FRUSTRATION OF CONTRACT helpful? You can share it by copying the code below and adding it to your blog or web page.
Edited and fact checked by James: Google +