Contracts
What is 'frustration of purpose' as a contract defense in Nevada real estate?
AWhen a buyer is frustrated with the seller's unresponsiveness
BA doctrine excusing contract performance when an unforeseen event destroys the primary purpose for which the contract was made, even if performance remains technically possible — related to but distinct from impossibility of performance✓ Correct
CA Nevada court remedy for delays caused by title companies
DThe right to cancel a contract when interest rates rise above expected levels
Explanation
Frustration of purpose excuses performance when an unforeseen event renders the contractual purpose valueless, even though performance is still technically possible. Example: a commercial buyer purchases a building specifically for a restaurant; before closing, the zoning is changed to prohibit food service.
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Key Terms to Know
Zoning
Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
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