The Lake District argues the circuit court erred by determining: (1) Jereczek's failure to give written notice of termination of the contract was the relevant breach, rather than Jereczek's failure to make payments according to the terms of the contract, and this breach was not actionable; and (2) the Lake District's claim was barred by the frustration of purpose
This edition has updated cases for analysis in terms of the validity of contracts, the court's role in determining whether a valid offer has been made, the concepts of consideration and mutual mistake, the enforceability of restrictive covenants, the assertion of rights pursuant to third party contracts and novations, and the elements of frustration of purpose
needed to discharge a contractual obligation, as well as revisions to the Uniform Commercial Code and new material on proving contractual terms.
However, LIBOR plaintiffs have not alleged mutual mistake and frustration of purpose claims.
As such, plaintiffs should look to fraud, frustration of purpose, breach of the implied covenant of good faith and fair dealing, and mutual mistake for improved chances of recovery.
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.
It may be that this restates a form of frustration of purpose
, although it is probably wider than the doctrine as currently understood.
Part II lays out the "basic assumption" test under the doctrines of impracticability and frustration of purpose, and argues that this standard should be used to determine whether the buyer's obligation to close is discharged under an MAE provision.
Section II.A briefly reviews the formal doctrines of impracticability and frustration of purpose as articulated by the "basic assumption" test, and suggests their analytical similarity to the problems presented by MAE clauses.
The "frustration of purpose
" doctrine is another theory that may be argued by suppliers.
National Cart, the Eighth Circuit upheld summary judgment in favor of a manufacturer who terminated a distributor's contract for frustration of purpose
. The parties had agreed that as long as the manufacturer had a distributorship agreement with Viking, Target Stores would be Viking's exclusive customer.
Two doctrines fit these criteria--impracticability and frustration of purpose
. Applying these doctrines to motions to withdraw guilty pleas based upon changes in the law demonstrates that courts have been unduly restrictive in granting such motions.
Will parties to such legal instruments be entitled to cease performance thereunder based upon the defenses of "impossibility," "frustration of purpose
," or "commercial impracticability" under Florida law?