What is the doctrine of frustration in contract law?

The doctrine of frustration in contract law refers to a situation where unforeseen events make it impossible for one or both parties to fulfill their contractual obligations, thereby terminating the contract. This principle acknowledges that certain events can occur which were not anticipated by the parties at the time of the contract, rendering the performance of the contract impossible or fundamentally different from what was agreed upon. As a result, the parties are discharged from their obligations without liability for breach.

In this context, the focus is on the concept of unforeseen impossibility rather than simply the inability to perform due to lack of interest, likeliness of renegotiation, or mere extension of time for performance. Frustration usually involves significant changes in circumstances, such as natural disasters, changes in law, or other unforeseen events that fundamentally change the nature of the contractual obligations.