Frustration of Contract

Frustration of Contract releases parties from obligations when an unforeseen event makes the contract’s performance impossible or radically different. This legal doctrine often involves natural disasters, significant regulatory changes, or other extraordinary events.

Significant instances include:

• Natural disasters like earthquakes or floods
• Major regulatory changes, such as new laws banning certain activities
• War or civil unrest
• Destruction of subject matter, like a fire consuming a rental property

An example is when a venue burns down before an event. Another is when a government regulation prohibits the sale of a contracted product.

The contract’s performance becomes impossible or fundamentally altered. The doctrine ensures fairness when circumstances drastically change beyond control.