frustration of purpose


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frustration of purpose

n. sometimes called commercial frustration, when unexpected events arise which make a contract impossible to be performed, entitling the frustrated party to rescind the contract without paying damages. Example: Jack Appleseller contracts to buy a commercial building to rent out, and, while the sale is pending, the building is condemned by the city as unsafe for any use. Mr. Appleseller can back out of the purchase without obligation.

References in periodicals archive ?
Frustration of purpose - To own a business, like being in love, is to suffer frustration from time to time.
Chapters address the scope of application of general contract principles, the concept of non-performance, the force majeure excuse, and hardship, along the way examining such elements as contractual risk allocations, unforseeability of an impediment, impediments beyond the typical sphere of risk and control of the obligor, responsibility for third parties, legal impediments, involvement of states or state enterprises, the hardship threshold test, frustration of purpose, irreconcilable differences, and comparison with exemptions under domestic legal systems.
For example, Michigan courts have accepted the frustration of purpose defense in a suit for payment of child support payments when the child had died.
Impracticability and frustration of purpose defenses are difficult to establish, but depending on the facts and circumstances, may be available.
Two doctrines fit these criteria--impracticability and frustration of purpose.
Courts can conduct a similar analysis using the frustration of purpose doctrine and provide relief in deserving circumstances.
As with impracticability, the two initial requirements of the frustration of purpose doctrine are always met in the case of a change in the law.
The application of the frustration of purpose doctrine is essentially the same regardless of whether the change affects the underlying crime or simply provides a new defense to that crime.
40) Furthermore, in order to enjoy the legal excuse of frustration of purpose as laid down in Florida's common law of contracts, one must establish that the essential purpose and value of the contract have been frustrated by some unforeseen event.
Although the Florida Legislature has not yet acted on this issue, it is reasonable to conclude that Florida courts would adhere to the lex monetae principle and thus apply the euro rules to legal instruments affected by the euro transition--appropriately rejecting any right to excused performance under the doctrines of impossibility, frustration of purpose, or commercial impracticability.
a sister company of Amway Corporation, today filed a class-action lawsuit against Quixtar seeking a declaration that all distributor contracts with Quixtar, and the non-competition and non-solicitation provisions in particular, are unenforceable due to illegality and/or frustration of purpose.
The company asserts claims against the defendants based on violations of the Federal securities laws, fraudulent misrepresentation, fraudulent inducement and concealment, civil conspiracy, negligent misrepresentation, breach of fiduciary duty, breach of contract, conversion, impossibility and impracticability of performance and frustration of purpose of the Purchase Agreement and transactions described therein.