FRUSTRATION
In the law of contracts, the destruction of the
value of the performance that has been bargained
for by the promisor as a result of a supervening
event.
Frustration of purpose has the effect of
discharging the promisor from his or her obliga-
tion to perform, in spite of the fact that per-
formance by the promisee is possible, since the
purpose for which the contract was entered into
has been destroyed. For example, an individual
reserves a hall for a wedding. In the event that
the wedding is called off, the value of the agree-
ment would be destroyed. Even though the
promisee could still literally perform the obliga-
tion by reserving and providing the hall for
the wedding, the purpose for which the contract
was entered into was defeated. Apart from a
nonrefundable deposit fee, the promisor is ordi-
narily discharged from any contractual duty to
rent the hall.
In order for frustration to be used as a
defense for nonperformance, the value of the
anticipated counterperformance must have
been substantially destroyed and the frustrating
occurrence must have been beyond the contem-
plation of the parties at the time the agreement
