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 ?
However, should this process prove unsuccessful, the Company will challenge the enforcement of the Convertible Debentures on the grounds it has been advised are available, including criminal interest and frustration of contract due to stock manipulation by certain CD holders.
Last night Amicus member Dave Reay, of Killingworth, North Tyneside, who has worked at the factory for 26 years, said: "At today's meetings, the company defended its position on frustration of contract but Mr Scott says there is scope for additional payments through the insurance.
The management have told us today that because of something called frustration of contract we are not entitled to it.