If a party's principal purpose is substantially frustrated without his fault by the occurrence of an event whose nonoccurrence was a basic assumption on which the contract was made, the party's remaining duties to render performance are discharged, unless the party has assumed the risk.

Principal Purpose

The primary or predominant reason for which an activity, agreement, or operation is intended or carried out.

Substantially Frustrated

A condition in contract law when an unforeseen event undermines the purpose of the contract, justifying its termination.

Basic Assumption

A fundamental belief or principle that is accepted as true without proof.