commercial frustration

commercial frustration definition - business

commercial frustration

An uncontrollable event that makes it impossible to satisfy the terms of an existing contract. For example, inventory scheduled for shipment to a buyer is lost or damaged beyond repair by a hurricane. Commercial frustration is grounds for rescinding a contract without penalty.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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