What is the doctrine of frustration in a contract?

The doctrine of frustration in contract law is an involuntary principle that applies when a contract becomes impossible, illegal, or has become so radically different than what was agreed upon that it becomes impossible to enforce. It essentially excuses a party from adhering to the terms of the contract if certain conditions are met. In the state of North Dakota, the doctrine of frustration was established by the Supreme Court of North Dakota in 1990 as part of the Lien-on-Lien Statute. This statute states that a contract may be frustrated if an event occurs which alters the fundamental nature of the contract. In addition, the event must not have been foreseeable at the time the contract was created, and it must render the contract impossible to perform. In North Dakota, if a contract is frustrated, the parties are excused from performing the contractual duties. This does not mean that the contract is invalid, however; the parties may still be held accountable for any damages incurred as a result of the frustration. The doctrine of frustration is an important legal principle in contract law, as it allows parties to be relieved from their obligations when an unforeseen event makes it impossible to fulfill their side of the agreement. Without this principle, parties may be held accountable for damages they did not cause. It ensures the parties are not unfairly disadvantaged by an event which was impossible to predict at the time of forming the contract.

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What is the doctrine of frustration in a contract?

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