Force Majeure and Frustration: When Events Make a Contract Impossible

When something outside the parties' control makes a contract impossible, two legal ideas may apply: a force majeure clause in the contract, and the doctrine of frustration.

Force majeure clauses

These clauses list events, such as natural disasters, war, government orders or pandemics, that excuse or suspend performance. Each clause is different, so the wording matters.

Frustration

Without a clause, a contract may be frustrated when:

• an unforeseen event happens after the contract was made;
• it isn't the fault of either party;
• it makes performance radically different from what was agreed.

Being more expensive or less convenient isn't enough.

What happens to money paid

Under the Frustrated Contracts Act, money paid before the event may be recoverable, with allowances for expenses already incurred.

Practical steps

• Give written notice to the other side as soon as possible.
• Keep records of the event and its effect.
• Try to agree on rescheduling or refunds.

Sources

• Frustrated Contracts Act (Ontario)
• Breach of contract remedies (NEO guide)

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General Ontario legal information, not legal advice for your matter, and reading it does not create a retainer. Sources checked 16 October 2026: check the current law, forms and dates before you act.

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This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.