What is frustration of purpose?

Frustration of purpose (FOP) is a legal concept in Contract Law in Texas. It states that if an unforeseeable event or circumstance occurs that makes a contract impossible to perform, then the contract is discharged and both parties are released from their contractual obligations. This means that if you entered into an agreement, such as a lease, but something happens that makes it impossible to fulfill the agreement, then the contract is considered frustrated. An example of FOP is when you sign a lease agreement but a natural disaster destroys the property. Since the purpose of the contract is no longer possible to perform, then it is frustrated and the agreement is considered discharged. FOP is a complex concept of Contract Law that requires a lawyer to determine whether or not it applies. There are many factors that go into determining whether or not a contract has been frustrated, such as the circumstances of the event, the extent of the destruction and the details of the contract itself. It is important to remember that FOP can only be claimed in special cases and that it is a last resort. Before determining whether or not FOP applies, a lawyer should make sure that all other avenues of performance, such as contract modification or termination, have been exhausted.

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What is frustration of purpose?

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