Commercial Frustration and Temporary Frustration Law and Legal Definition

Frustration is something that prevents the attainment of a goal. In contract law it is also termed as frustration of purpose. Commercial frustration and temporary frustration are types of frustration in contract law.

Commercial frustration means unforeseeable and uncontrollable circumstances that prevent performance of a contract. It is an excuse for a party’s non performance of contract due to some unforeseeable and uncontrollable circumstances. This circumstance allows the frustrated party to rescind the contract without penalty.

Temporary frustration is an event that prevents performance of a contract and legally suspends the duty to perform for the duration of the event. In temporary frustration the duty may be discharged if the circumstances are substantially different after the event.