Doctrines
Frustration of Purpose
Also Known As Commercial Frustration
Citation Formats
General Reference
APA Style
BibTeX
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.
Facts
Origin PeriodOriginated 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 PrincipleWhere 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 Cross-Tradition Connections
Established By
In Legal System
Sources
1. Frustration of Purpose (Wikipedia)
English law origin section, Taylor v CaldwellQuote, 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".
1. Frustration of Purpose (Wikipedia)
Legal standard (U.S.) sectionQuote, 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.
1. Frustration of Purpose (Wikipedia)
English law origin sectionQuote, English law origin section
established the doctrine of frustration, alleviating the potential harshness of 'sanctity of contract'
1. Frustration of Purpose (Wikipedia)
Definition sectionQuote, 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.
1. Frustration of Purpose (Wikipedia)
1. Frustration of Purpose (Wikipedia)
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.
Reader Challenges (0 open reader challenges)
No disputes yet. Spotted an error or a better source? Open the first one.
Sign in to dispute this or suggest a correction.
View At A Past Year
The atlas records no dated fact of its own for this entry, so there is no other year to choose.