Frustration of purpose

Question 1

Elements of frustration of purpose

Answer 1

1. Supervening event “substantially frustrates” a party’s purpose for contracting
2. Non-occurrence of the frustrating event was a basic assumption on which contract was made;
3. Frustrating even not the fault of the party seeking to excuse performance
4. Contractual language or circumstances indicates that the part seeking an excuse did not assume a “great obligation”

Question 2

Impracticability: sudden increase in cost for the seller
Frustration: sudden decrease in value for the buyer