commercial frustration

(law) A legal theory that implies a condition or term into a contract, if no express provision was made, to excuse the parties when performance becomes impossible because an event occurs that the contracting parties could not have reasonably foreseen or controlled. Commercial frustration may arise, for example, if a seller’s shipment is lost in a shipwreck or if a manufacturer cannot obtain raw materials because war has broken out in the country supplying them. See force majeure.

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