What is frustration of purpose?

Frustration of purpose is a legal term in contract law in Virginia that refers to a situation where something happens that makes it impossible or very difficult for someone to do what they agreed to do in a contract. This could be because of an action taken by the other party, an event outside of both parties’ control, or something else. In Virginia, the legal term is often referred to as “impossibility of performance." This occurs when it becomes impossible for one of the parties to fulfill their contractual obligations because something has occurred that was beyond their control. Examples could include a change in the law that affects the agreement, an unexpected change in the situation that affects the agreement, or destruction of the subject matter of the agreement. The doctrine of frustration of purpose is not absolute, and courts must decide on a case-by-case basis if the situation says it is impossible or too difficult to complete the obligations of the agreement. Generally, if the party can still fulfill the agreement, it has not been frustrated. If the agreement can no longer be fulfilled, the contract is likely to be deemed frustrated. If this happens, both parties are discharged of any further obligations under the agreement.

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What is frustration of purpose?

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