At common law, where frustration is established the contract is terminated automatically (in futuro); there is no option to discharge or to perform and, at common law, the loss resulting from the termination lies where it falls (although there are limited exceptions to that rule).
Under Florida law, the “defense of frustration of purpose refers to the condition surrounding contracting parties where one of the parties finds that the purposes for which it bargained, and which purposes were known to the other contracting party, have been frustrated to the extent that the Page 2 breaching party is ...
Frustration of purpose is actually a defense to a breach of contract. It is usually used in contracts or negotiations between a buyer and seller. While the caterer might try to allege she should be released from contractual duty due to frustration of purpose, it is unlikely it would hold up in court.
As mentioned earlier, frustration is a rare remedy in contract law. Since it discharges the contract, it effectively terminates the parties' future obligations. However, it's important to remember that frustration isn't a cure-all solution and not all contractual disputes can be resolved through this doctrine.
Specifically, the elements of a California frustration of purpose claim are as follows: the frustration was so severe and harsh that the basic purpose of the contract was destroyed; the supervening event was unforeseen and not the fault of one of the parties to the contract; the frustration was of the type not regarded ...
The Restatement (Second) of Contracts § 265 provides that frustration of purpose may excuse performance when, so long as the language or circumstances do not indicate the contrary: (1) a party's principal purpose is substantially frustrated; (2) such party is not at fault; and (3) the contract was made on the basic ...
A quick definition of frustration of purpose: For example, if someone buys a car to use for a road trip, but then a flood destroys all the roads, they can cancel the contract because the purpose of buying the car has been frustrated.
Elements of frustration Frustration must be total: The frustration must be total, meaning that it must make it impossible or impracticable to perform the entire lease agreement, not just a part of it. No fault of the parties: The frustration must not be caused by the fault of either party to the lease deed.
Frustration occurs whenever the law recognizes that without default of either party a contractual obligation has become incapable of being performed because the circumstances in which performance is called for would render it a thing radically different from that which was undertaken by the contract.”