Legal Definitions - self-induced frustration

Self-induced frustration refers to a situation in contract law where a party claims that an unforeseen event has made it impossible to perform their contractual obligations, but that event was actually caused by their own actions, negligence, or a circumstance they could have prevented or controlled. When frustration is "self-induced," the law typically does not allow the party to escape their contractual duties, because the impossibility of performance was not truly external or beyond their control.

Here are some examples to illustrate this concept:

• Imagine a construction company, "BuildFast Inc.," contracts to complete a new office building by a specific date. The contract specifies that BuildFast Inc. is responsible for sourcing all necessary equipment. BuildFast Inc. then fails to place an order for a crucial, custom-built crane until it's too late for it to arrive by the deadline, making it impossible to finish the upper floors on time. If BuildFast Inc. tries to argue that the contract is "frustrated" because they cannot get the crane, a court would likely find this to be self-induced frustration. The delay was due to their own poor planning and management, not an external, unforeseen event.

• Consider a professional photographer, Sarah, who agrees to photograph a client's wedding on a specific Saturday. The week before the wedding, Sarah decides to go on an impromptu camping trip to a remote wilderness area, knowing there is no cell service and difficult access back to civilization. Due to an unexpected storm, her return journey is delayed, and she misses the wedding. Sarah cannot claim the contract was frustrated by the storm, as her inability to perform was a direct consequence of her own voluntary decision to place herself in a situation where she knew her ability to meet her obligation would be compromised. This would be considered self-induced frustration.

• A manufacturing company, "PartsPro," enters into a contract to supply 5,000 specialized components to an electronics firm by the end of the quarter. Two weeks before the deadline, PartsPro decides to shut down its production line for a full week for non-essential maintenance and staff training, even though they knew this would make it impossible to meet the delivery target. If PartsPro then attempts to argue that the contract is frustrated due to "production issues," this would be a case of self-induced frustration. The inability to deliver on time was a direct result of their own deliberate operational decision, not an external event beyond their control.