What is the difference between force majeure and frustration in contracts?

Can you explain the difference between force majeure and frustration in contracts?

Sure! Force majeure refers to unforeseen events that prevent a party from fulfilling their contractual obligations, like natural disasters. Frustration, on the other hand, occurs when an unforeseen event fundamentally changes the nature of the contract, making it impossible to perform.

Can you give me examples of each?

Of course! An example of force majeure could be a hurricane that destroys a venue for an event. An example of frustration might be a contract for a specific performance that becomes impossible due to a change in law.

How do these concepts affect liability?

Both concepts can limit liability. If a party can prove force majeure, they may be excused from performance without penalty. In cases of frustration, the contract may be deemed void, releasing both parties from obligations.

Are there any legal precedents for these concepts?

Yes, there are several legal precedents. Courts often look at the specific terms of the contract and the nature of the event to determine if force majeure or frustration applies.