COMMERCIAL FRUSTRATION Meaning and
Definition
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Commercial frustration refers to a legal concept that arises in the realm of contracts when an unforeseen event, beyond the control of either party involved, renders the performance of the contract impossible or commercially impracticable. It is a form of frustration of purpose that specifically relates to commercial contracts.
In a situation of commercial frustration, the event causing the frustration must be of such a nature that it fundamentally alters the commercial purpose for which the contract was entered into, making it either totally impossible or drastically difficult for one or both parties to fulfill their obligations under the agreement. This event might involve the destruction of stock, a change in government regulations, a natural disaster, or other similar unforeseen circumstances.
When commercial frustration occurs, the affected party is typically relieved from their contractual obligations or may be entitled to seek modifications or termination of the contract. Commonly, commercial frustration does not necessarily mean the contract is immediately terminated, but rather it allows the affected party to seek remedies, renegotiate terms, or potentially suspend their performance temporarily.
To invoke commercial frustration, the party must demonstrate that the event in question was unforeseeable at the time the contract was established, beyond their control, and has had a significant impact on the core purpose of the contract. This legal doctrine exists to provide a fair resolution when unforeseen circumstances disrupt the commercial expectations and objectives of the parties involved.
Common Misspellings for COMMERCIAL FRUSTRATION
- xommercial frustration
- vommercial frustration
- fommercial frustration
- dommercial frustration
- cimmercial frustration
- ckmmercial frustration
- clmmercial frustration
- cpmmercial frustration
- c0mmercial frustration
- c9mmercial frustration
- conmercial frustration
- cokmercial frustration
- cojmercial frustration
- comnercial frustration
- comkercial frustration
- comjercial frustration
- commwrcial frustration
- commsrcial frustration
- commdrcial frustration
- commrrcial frustration
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