What is the doctrine of frustration of purpose?
Asked by: Ramon Barton | Last update: February 16, 2026Score: 4.9/5 (47 votes)
The doctrine of frustration of purpose excuses contract performance when an unforeseen event, not the fault of either party, destroys the fundamental reason (purpose) for the contract, making performance essentially worthless, even if technically possible. It applies when the contract's core objective, known to both parties, is thwarted by an unexpected occurrence (like a government ban or event cancellation) that wasn't a foreseeable risk when the agreement was made, discharging remaining duties.
What is the frustration of purpose doctrine?
Frustration of purpose, also called commercial frustration, is an excuse for nonperformance of a contract when an unforeseeable event destroys the agreement's principal purpose. It is distinct from impossibility, which applies (as the name indicates) when performance itself becomes literally impossible.
What is the doctrine of frustration in simple words?
The Doctrine of Frustration is used when a contract becomes impossible to fulfill and eventually becomes void incase due to some unforeseen or impossible situations.
What is the common purpose frustration?
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 ...
What are the limitations of the doctrine of frustration?
Frustration can only operate where the parties have not themselves allocated the risk of loss between themselves in the contract. In other words, where a party has agreed to bear the risk/loss of some sort.
What is 'commercial frustration of purpose' under contract law?
What is the landmark case of doctrine of frustration?
The case of Satyabrata Ghose v. Mugneeram Bangur & Co. is a landmark judgment that significantly clarified the scope and application of the doctrine of frustration under Section 56 of the Indian Contract Act.
What are the requirements for a claim of frustration?
For a contract to be considered frustrated, certain stringent criteria must be met: an event must occur that significantly alters contractual duties, is not the fault of either party, and was neither foreseen nor provided for in the contract.
How is frustration proven in court?
To prove frustration, you must be able to show that something has happened – that “supervening event” we mentioned earlier – that means carrying out your contractual obligations has significantly changed.
What are the three types of frustration?
Types of Frustration
- Personal Frustration. • • Caused by problems inside the person. • • Example: Fear or low confidence stops a. person. ...
- Environmental Frustration. • • Caused by outside situations or. surroundings. • • Example: Traffic or bad weather stops your. plan. ...
- Conflict-Based Frustration. • •
What is the difference between frustration of purpose and impracticability?
Unlike force majeure and impracticability/impossibility, the frustration of purpose doctrine relates to the underlying purpose of a contract, as opposed to a party's actual inability to perform.
Who bears the risk in a frustrated contract?
Frustration applies only when performance is impossible or legally prohibited. Foreseeable risks: If the contract could have reasonably accounted for the event, courts will expect the parties to bear the consequences.
What is the discharge under the doctrine of frustration?
Under the doctrine of frustration, a promisor is relieved of any liability under a contractual agreement in the event of a breach of contract where a party to the agreement is prevented from, or unable to, perform his/her obligations under the agreement, due to some event which occurs, which was outside of their sphere ...
What is the agreement to do an act impossible?
—A contract to do an act which, after the contract is made, becomes impossible, or, by reason of some event which the promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful. Compensation for loss through non-performance of act known to be impossible or unlawful.
What are the grounds for the doctrine of frustration?
GROUNDS FOR APPLICABILITY OF DOCTRINE OF FRUSTRATION
Impossibilities of Performance: Performance impossibilities arise when external events such as an Act of God or Force Majeure make it physically impossible to fulfill the contract, altering its fundamental nature.
What is the failure of purpose?
When the intended purpose of an agreement or arrangement can no longer be achieved, and in most cases, releases the parties from their obligations.
What are the four principles of contract law?
The four fundamental principles of contract law for a legally binding agreement are Offer, Acceptance, Consideration, and the Intention to Create Legal Relations, requiring a clear proposal, agreement to terms, an exchange of value, and a genuine purpose to be legally bound, respectively, for enforceability.
What is the root emotion of frustration?
Frustration originates from feelings of uncertainty and insecurity which stems from a sense of inability to fulfill needs.
What is the leading case of doctrine of frustration?
Satyabrata Ghose v.
In this landmark case, the Supreme Court of India elaborated on the doctrine of frustration. The court held that the impossibility referred to in Section 56 does not mean physical or literal impossibility but includes practical and commercial impossibility.
How to identify a frustrated person?
Symptoms of a frustrated man
Anger: One of the most common signs of frustration is feeling angry. When frustrated, you may lash out at those around you or take your anger out on inanimate objects. Anxiety: This may be due to the stress of not being able to meet your expectations or the fear of failing.
What are the requirements for frustration of purpose?
The frustration of purpose doctrine dictates that, if after a contract is made, a party's principal purpose is substantially frustrated by an event that was not its fault, and a basic assumption of the contract was that this event would not occur, the party's remaining duties to perform under the contact are discharged ...
What is the doctrine of absolute obligations?
Under the doctrine of absolute obligations the defendants would be liable to the claimants because under the agreement they would no longer be able to perform their obligations which had been contracted for; namely the use of a music hall for four days[3].
What is the doctrine of frustration in practical law?
A common law doctrine that provides, in circumstances where a subsequent event makes performance of a contract impossible, through no fault of either party, the contract is to be treated as terminated and the parties discharged from further performance.
What is the legal principle of frustration?
frustration occurs whenever the law recognises that without default of either party a contractual obligation has become incapable of being performed because the circumstances in which performance is called for would render it a thing radically different from that which was undertaken by the contract.
What is Section 37 of the contract Act?
The parties to a contract must either perform, or offer to perform, their respective promises, unless such performance is dispensed with or excused under the provisions of this Act, or of any other law.
What is Section 177 of the contract Act?
If a time is stipulated for the payment of the debt, of performance of the promise, for which the pledge is made, and the pawnor makes default in payment of the debt or performance of the promise at the stipulated time, he may redeem the goods pledged at any subsequent time before the actual sale of them1 ; but he must ...