Perry v. Champlain Oil Co.

The relatively modem doctrine of commercial frustration in the law of contracts is similar to the doctrine of impossibility of performance in that both require extreme hardship in order to excuse the promisor. Commercial frustration is different in that it assumes the possibility of literal performance but excuses performance because supervening events have essentially destroyed the purpose for which the contract was made. Lloyd v. Murphy, 25 Cal. (2d) 48, 53; Brown v. Oshiro, 68 Cal. App. (2d) 393. Whether the basis for commercial frustration rests on failure of consideration as suggested by…