The Law Dictionary

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FRUSTRATION OF CONTRACT Definition & Legal Meaning

Definition & Citations:

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.


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