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 ?
Marr said yesterday: "We dismissed Mr Carter on the basis of frustration of contract after having taken two sets of legal advice.
But more importantly, there is no doctrine of law - short of the law of frustration of contract or illegality - which have the effect of somehow rendering a term in a private law contract 'inoperative'.
36) In Pasovska the New South Wales Industrial Relations Commission held that frustration of contract had not occurred in February 2000 even though the worker had ceased work with the appellant in 1993.
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.