Frustration of Purpose
Frustration of purpose is a contract defense that excuses performance when an unforeseen event substantially destroys the principal purpose of the contract, even though performance remains physically possible.
Exam Tip
Frustration = PURPOSE destroyed but performance still POSSIBLE. Krell v. Henry (coronation case) is the classic.
What is Frustration of Purpose?
Frustration of purpose excuses performance when the fundamental reason for entering the contract has been substantially destroyed by unforeseen circumstances.
Elements
| Element | Description |
|---|---|
| Principal Purpose Frustrated | Primary reason destroyed |
| Substantially Frustrated | Must be substantial |
| Unforeseen Event | Not reasonably foreseeable |
| Not Party's Fault | Not caused by party seeking excuse |
Landmark Case: Krell v. Henry (1903)
Room rented to view coronation procession. King fell ill, coronation postponed. Court excused payment - entire purpose frustrated.
Frustration vs. Impossibility
| Doctrine | What's Affected | Performance |
|---|---|---|
| Frustration | Purpose/value | Still possible |
| Impossibility | Ability | Objectively impossible |
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Related Terms
Impossibility (Contract Defense)
Impossibility is a contract defense that excuses performance when an unforeseen event makes performance objectively impossible, such as destruction of the subject matter, death of a necessary party, or supervening illegality.
Impracticability
Impracticability is a contract defense that excuses performance when an unforeseen event makes performance extremely and unreasonably difficult or expensive, though not strictly impossible.