Case Law (e.g., Taylor v. Caldwell)

Case law refers to the law established by the outcomes of previous court cases rather than written statutes. An example is *Taylor v. Caldwell* (1863), where a music hall burned down before a scheduled event. The court ruled that neither party could be held liable for breach of contract because the destruction of the hall made performance impossible. This case set a precedent for "frustration of contract," meaning that unforeseen events can release parties from their contractual obligations when performance becomes impossible due to circumstances beyond their control.