Meghiúsítás

Meghiúsítás is a Hungarian legal term that translates to "frustration of contract" or "impossibility of performance" in English legal contexts. It refers to a situation where an unforeseen event occurs after a contract has been concluded, making it impossible for one or both parties to fulfill their contractual obligations. This event must be external to the parties and not caused by their fault.

When a contract is frustrated, its purpose is fundamentally defeated. The legal consequence is typically that the contract is discharged, meaning both parties are released from their future obligations. However, the specific outcomes can depend on the jurisdiction and the nature of the contract. In some cases, parties may be entitled to recover money already paid, or compensation for work already done, though this is not always guaranteed.

The doctrine of meghiúsítás is distinct from breach of contract, which occurs when a party fails to perform their obligations without a valid excuse. Frustration implies an impossibility that neither party could have prevented. Examples of events that might lead to meghiúsítás include natural disasters, acts of war, or unforeseen changes in the law that make performance illegal. The application of this principle requires careful consideration of the specific circumstances of each case to determine if the threshold for frustration has been met.