What is the doctrine of frustration in a contract?

The doctrine of frustration is an area of contract law that deals with unanticipated and uncontrollable events. It is a part of the common law of contracts in North Carolina. When a contract is frustrated, it means an event has occurred that renders the contract impossible, illegal, or futile to complete. The event may be due to either party’s actions or outside influences. Therefore, the parties’ obligations are discharged. For example, if a party to a contract dies or contracts an illness, the contract may be frustrated. Frustration does not typically occur as a result of mere inconvenience, only for something that is out of the parties’ control. The doctrine of frustration is both an excuse for non-performance of contracts as well as a way to terminate them. For example, if a contract is frustrated, it can be discharged without any payment of damages by the breaching party. The doctrine of frustration is an important concept in contract law. It is applied when events occur that make it impossible or inadvisable for the parties to complete the contract. It is necessary in order to ensure that the party that has not caused the frustration is not required to complete an agreement they have no legal obligation to fulfill.

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