Impossibility, impracticability and frustration of purpose
Common law excuses that apply where no force majeure clause does.
Esshaki Legal Media TeamCurrent as of May 2024
Where a contract has no force majeure clause, three common law doctrines may
excuse performance. All are narrow.
Impossibility. Performance has become objectively impossible — destruction
of the subject matter, death of a person essential to performance, or
supervening illegality. Subjective inability, including insolvency, does not
qualify.
Impracticability. Performance is possible but only at excessive and
unreasonable cost, following an event the non-occurrence of which was a basic
assumption of the contract. Courts apply a demanding standard; cost increases of
substantial magnitude have been held insufficient where the risk was
foreseeable.
Frustration of purpose. Performance remains possible but the event has
destroyed the value of the exchange for one party, where the frustrated purpose
was known to both and was a basic assumption. The classic examples involve
venues rendered useless for the purpose for which they were hired.
Common limits. The party seeking relief must not have caused the event, must
not have assumed the risk expressly or by implication, and the event must not
have been reasonably foreseeable.
Consequence. Discharge of the contract rather than damages, with restitution
of benefits conferred. Partial relief is generally unavailable, which is why an
express clause providing for suspension is preferable to reliance on these
doctrines.