The Doctrine of Frustration

The Doctrine of Frustration is a legal principle that applies when unforeseen events make it impossible to fulfill a contract’s terms. If something occurs that neither party expected and it fundamentally changes the nature of the agreement—such as a natural disaster, war, or new law—the contract can be considered “frustrated.” In such cases, the parties are usually released from their obligations without penalty, because it would be unfair to hold them to a contract they can no longer perform due to circumstances beyond their control.