Frustration of Purpose - (Mel Frank – Chemical Storage)

Elements 

1. A principal purpose was frustrated by a post-formation event. 

2. The frustration was substantial 

3. Non-occurrence of the event was a basic assumption [same as impracticability] 

AND 

4. No assumption of risk by the party seeking relief 

Element 1 – Principal Purpose 

1. Look at the language (expand on principal AND  

2. principal purpose of the K). 

3. Look at the preliminary negotiation – this purpose is known, and known as principal, to both parties. 

   1. Principal = most or all of the product/inventory. Proportion. 

Element 2 – Substantiality 

1. This element measures how severe the frustration is (I.e. magnitude of the problem) 

2. The test:   

   1. There must be a serviceable use 

   2. The use must be within the originally intended purpose 

Element 3 – Majeure Clauses 

1. A form of Express Allocation (similar to "as is" in mistakes) 

2. Excuse to promisors in case of catastrophes 

   1. Is the attack equivalent to war?