What is frustration of purpose?

Frustration of purpose is a term used in contract law to describe a situation where a contract becomes impossible to fulfill due to an unforeseen event. It is an implied term of a contract that the parties will be able to complete what they have agreed to do. In South Carolina, frustration of purpose applies when an event occurs that the parties could not have been expected to take into account when they created the contract. Examples of frustration of purpose are found in cases where a war occurs, natural disaster, or a change in the law. In these cases, the parties may find that the purpose of the contract is no longer able to be completed. In the case of a change in the law, the parties to the contract may find the requirements for completing the agreement impossible to meet. For example, if the parties agreed to build a building, and then the government changes the building codes, then the agreement may become impossible to fulfill. A court may assume that the parties did not contemplate the possibility of a situation that would make it impossible to complete the contract when they entered into the agreement. This means that the court may declare the agreement void if it is determined to be an act of frustration of purpose. In South Carolina, frustration of purpose is a legal term used in contract law. It is an implied term of a contract that the parties can complete what they have agreed to do. If an event occurs that the parties could not have been expected to take into account, the court may assume that the agreement is void. In cases of frustration of purpose, the parties to the contract may no longer be held to any of the terms of the document.

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