Commercial Frustration Legal Meaning and Definition

Here is a simplified definition of the legal term Commercial Frustration.

Commercial Frustration (noun)

Commercial Frustration is a legal concept referring to an unavoidable and unexpected circumstance that prevents a party from fulfilling their obligations under a contract, rendering the contract void. This situation may arise due to reasons beyond the control of the contracted parties, such as natural disasters, change in laws, or denial of permits. The inability to meet contractual obligations due to these circumstances is called 'frustration of purpose'.