What is doctrine of frustration?

The doctrine of frustration refers to a legal principle that discharges parties from their contractual obligations when an unforeseen event occurs, making the performance of the contract impossible or fundamentally different from what was originally agreed upon. This doctrine applies when the event was not caused by either party and was not contemplated at the time of contract formation. As a result, the parties are released from their obligations without liability for breach of contract. This principle is often invoked in situations involving natural disasters, legal changes, or other circumstances that significantly alter the contract's foundation.