Frustration of Contract

When a contract is frustrated, it means that it can no longer be performed. This can be because of an unforeseen event that makes performance impossible, or because the purpose of the contract has been destroyed. Frustration can happen in both business contracts and personal contracts.

If a contract is frustrated, the parties are released from their obligations under the contract. This means that they don’t have to perform any more, and they don’t have to pay any more money under the contract. But it also means that they can’t sue each other for breach of contract.

Frustration is different from force majeure, which is when something happens that makes it impossible to perform a contract but doesn’t release the parties from their obligations under the contract.