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Doctrine

Frustration of Purpose

Also Known As Commercial Frustration
Contract and Property Doctrine
Origin Originated in English contract law with Taylor v Caldwell (1863); restated in the United States in Section 265 of the Restatement (Second) of Contracts.

Frustration of purpose is a contract law doctrine excusing a party's remaining performance when an unforeseen event undermines that party's principal purpose for entering the contract, so that performance would be radically different from what both parties originally contemplated, even though performance remains literally possible. The doctrine originated in English law with Taylor v Caldwell (1863), which excused a music-hall hire contract after the hall burned down before the agreed performance dates, easing the harshness of strict sanctity of contract. In the United States it is restated in Section 265 of the Restatement (Second) of Contracts. Frustration of purpose is distinguished from impossibility, which concerns the duties the contract specifies rather than the reason a party entered into it. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/

Facts
Origin Period
Originated in English contract law with Taylor v Caldwell (1863); restated in the United States in Section 265 of the Restatement (Second) of Contracts. 1
Core Principle
Where a party's principal purpose in making a contract is substantially frustrated, without that party's fault, by an event whose non-occurrence was a basic assumption on which the contract was made, that party's remaining duties to render performance are discharged even though performance remains literally possible. 1
Origin Period
Origin Period (category)
19th Century (1800-1899) 1
Classification
Doctrine Category
Contract Law 1
Connections

Established By

Source Taylor v Caldwell (Wikipedia)

In Area Of Law

Entity-backed identity for the doctrine category value this doctrine already carries as an enum fact, resolved to a doctrine entity by an explicit value-to-entity map (phase 3 bucket conversion, docs\design_entity_backed_browse_buckets_20260928.md). The enum fact itself stays on the entity unchanged.

In Legal System

Source Frustration of Purpose (Wikipedia)
Sources
1. Frustration of Purpose (Wikipedia)
  • English law origin section, Taylor v Caldwell
    The English case of Taylor v Caldwell established the doctrine of frustration, alleviating the potential harshness of "sanctity of contract".
  • Legal standard (U.S.) section
    Where, after a contract is made, a party's principal purpose is substantially frustrated without his fault by the occurrence of an event the non-occurrence of which was a basic assumption on which the contract was made, his remaining duties to render performance are discharged.
  • English law origin section
    established the doctrine of frustration, alleviating the potential harshness of 'sanctity of contract'
  • Definition section
    Frustration of purpose, in law, is a defense to enforcement of a contract. Frustration of purpose occurs when an unforeseen event undermines a party's principal purpose for entering into a contract such that the performance of the contract is radically different from performance of the contract that was originally contemplated by both parties, and both parties knew of the principal purpose at the time the contract was made.
  • Lead section
    Frustration of purpose, in law, is a defense to enforcement of a contract.
  • In Category: Doctrines
  • In Legal System: Common Law
  • In Group: Contract Impracticability and Frustration Doctrines, is a defense to enforcement of a contract
View the Source
Taylor v Caldwell (Wikipedia)
WikipediaEstablished By: Taylor v Caldwell, Importance section (doctrine origin edge)
Quote, Established By: Taylor v Caldwell, Importance section (doctrine origin edge)
Until this case, parties to a contract were held to be absolutely bound and a failure to perform was not excused by radically changed circumstances. Instead, the contract was breached, and that gave rise to a claim for damages. This ruling, although quite narrow, opened the door for the modern doctrine of contract avoidance by frustration.
View the Source
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