What is the doctrine of frustration in a contract?

The doctrine of frustration in a contract is a legal principle that states when unforeseen events occur that are beyond the control of the parties to a contract, it is possible for the contract to be discharged. This doctrine is recognized in Nebraska contract law and applies to any contract, regardless of the type. Under the doctrine, a contract can be discharged by “frustration” when a supervening event occurs that is: (1) outside of the contemplation of the parties to the contract; (2) was not foreseen by the parties and cannot be avoided by them; (3) renders performance of the contract illegal, impossible, or radically different than originally agreed upon. For example, if a party to a contract that requires the purchase of a certain item is unable to obtain the item because it is no longer available, then the doctrine of frustration likely applies to the contract. In this case, the contract would be discharged because performance of the contract has become impossible. The doctrine of frustration is an important concept in contract law because it provides a legal basis for parties to be relieved of contractual obligations when events occur beyond their control. Without this doctrine, parties to a contract may be left in legal limbo when certain events occur that are beyond their control. As such, the doctrine of frustration ensures that the law remains equitable and reasonable when events occur that were not contemplated by the parties at the time of the formation of the contract.

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What is the doctrine of frustration in a contract?

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