What is a characteristic of contract termination 'By Frustration'?

A characteristic of contract termination 'By Frustration' is that it happens when an unforeseen event occurs. Frustration in contract law refers to a situation where circumstances arise that make it impossible to fulfill the contract’s obligations, or it fundamentally changes the nature of the agreement, and these circumstances were not anticipated by either party at the time the contract was made. Such events can include natural disasters, changes in the law, or other significant occurrences that prevent the execution of the contract.

This form of termination emphasizes the importance of the unpredictable nature of certain events that can disrupt contractual relations, solidifying the notion that contracts are based on mutual consent under understood conditions. Thus, when something unforeseen impacts the ability to perform, the contract is considered frustrated, leading to termination without liability.