A typical situation where the doctrine of economic frustration applies is when the party suffers a loss when a gain was expected.

Question

Quizplus · Accepted Answer

Economic frustration occurs when unforeseen events significantly change the nature of a contractual obligation or the value of what is to be received under the contract, making it impossible to fulfill, not merely when a party suffers a loss instead of a gain.

A Typical Situation Where the Doctrine of Economic Frustration Applies