Commercial frustration refers to a situation where the performance of a contract becomes impossible or significantly more difficult due to unforeseen events or circumstances beyond the control of the parties involved. These events or circumstances must be of such a nature that they were not contemplated by the parties at the time of entering into the contract and render the contract commercially impracticable or impossible to perform. In such cases, the affected party may seek relief from their contractual obligations or seek to renegotiate the terms of the contract. However, the party seeking relief must demonstrate that the frustration was not caused by their own fault or negligence. The court will consider various factors, including the nature of the contract, the foreseeability of the event, and the availability of alternative means to perform the contract, in determining whether commercial frustration has occurred and what remedies may be available to the affected party.
Commercial frustration occurs when unforeseen events or circumstances make it impossible for a party to fulfill their contractual obligations.
Examples of events that could lead to commercial frustration include natural disasters, government regulations, and labor strikes.
Commercial frustration can excuse a party from performing their obligations under a contract if the event causing the frustration was unforeseeable and beyond their control.
Yes, if a party can prove that commercial frustration made it impossible for them to fulfill their contractual obligations, it can be used as a defence in a lawsuit.
Yes, parties can include a commercial frustration clause in their contract to outline the circumstances under which performance may be excused.
If commercial frustration occurs, parties should notify the other party as soon as possible and attempt to renegotiate the terms of the contract.
In some cases, commercial frustration may lead to financial compensation if one party has incurred losses as a result of the frustration.
Parties can protect themselves from commercial frustration by including a force majeure clause in their contract and obtaining insurance coverage for potential risks.
Yes, if parties are unable to reach a resolution on their own, they may seek mediation or arbitration to resolve disputes related to commercial frustration.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 5th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/commercial-frustration/
- Modern Language Association (MLA):Commercial Frustration. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/commercial-frustration/.
- Chicago Manual of Style (CMS):Commercial Frustration. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/commercial-frustration/ (accessed: May 09 2024).
- American Psychological Association (APA):Commercial Frustration. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/commercial-frustration/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts