Economic frustration refers to an unforeseen and uncontrollable event that hinders the fulfilment of a contract or the achievement of a goal. While it can be used as an excuse for non-performance, it can also result in contract termination if it significantly impacts the purpose of the agreement. It is worth noting that frustration caused by one’s own actions is not classified as economic frustration, but rather as a breach of contract. Additionally, temporary frustration may arise, temporarily suspending the obligation to perform until the frustrating event concludes.
Economic frustration, also known as commercial frustration, refers to the inability of a party to fulfil their contractual obligations due to unforeseen and uncontrollable circumstances. There are different types of economic frustration, including self-induced frustration, temporary frustration, and frustration of purpose.
Self-induced frustration occurs when a party breaches the contract through their own actions, resulting in the prevention of performance. For example, if a contractor fails to deliver materials on time, causing a delay in a construction project.
Temporary frustration occurs when an event hinders performance and legally suspends the duty to perform for the duration of the event. An example of this is when a natural disaster occurs, preventing the delivery of goods.
Frustration of purpose happens when a party’s main objective is significantly hindered by unforeseen changes, leading to the discharge of their duties and termination of the contract. For instance, if a company rents a venue for a conference, but the venue is destroyed by fire before the event, making it impossible to hold the conference.
These examples demonstrate how economic frustration can arise from various factors, such as a party’s own actions, natural disasters, or unforeseeable circumstances that make it impossible to fulfil contractual obligations. In such cases, the party’s duties may be discharged, and the contract may be considered terminated.
Economic frustration refers to a situation where a party is unable to fulfill their contractual obligations due to unforeseen economic circumstances beyond their control.
Yes, economic frustration can be used as a defence in a breach of contract case if the party can prove that the unforeseen economic circumstances made it impossible or impracticable for them to perform their contractual obligations.
Examples of unforeseen economic circumstances include natural disasters, government regulations, economic downturns, or significant changes in market conditions.
To prove economic frustration, you will need to provide evidence of the unforeseen economic circumstances that occurred, demonstrate how these circumstances made it impossible or impracticable for you to perform your contractual obligations, and show that you took reasonable steps to mitigate the impact of these circumstances.
Yes, economic frustration can lead to the termination of a contract if the parties agree to terminate it or if the court determines that the economic frustration is significant enough to render the contract impossible to perform.
It depends on the specific circumstances and the terms of the contract. In some cases, parties may be entitled to seek damages for economic frustration if the other party’s actions or failure to act contributed to the economic frustration.
Economic frustration can potentially be invoked in all types of contracts, but its applicability will depend on the specific circumstances and the language of the contract.
Yes, parties can include provisions in a contract that address economic frustration, such as force majeure clauses or provisions that outline the steps to be taken in the event of unforeseen economic circumstances.
No, economic frustration is generally not a defence in a tort case as it primarily relates to contractual obligations and the inability to perform them due to economic circumstances.
No, economic frustration is not a defence in a criminal case as it pertains to contractual obligations and does not excuse criminal behavior.
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: 17th 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/economic-frustration/
- Modern Language Association (MLA):Economic Frustration. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/economic-frustration/.
- Chicago Manual of Style (CMS):Economic Frustration. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/economic-frustration/ (accessed: May 09 2024).
- American Psychological Association (APA):Economic Frustration. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/economic-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