Which of the following best describes the concept of 'frustration of purpose' in a lease agreement?

The concept of 'frustration of purpose' in a lease agreement refers to a situation where an unforeseen event undermines the fundamental purpose of the lease, impacting the tenant's ability to use the property as intended. This doctrine does not typically terminate the lease automatically, nor does it provide a blanket right to cancel or void the lease agreement outright. Instead, it recognizes that while the lease relationship continues, the primary reason the tenant entered into the lease may no longer be achievable, which can lead to a potential renegotiation or modification rather than an outright cancellation of the lease.

In legal terms, a lease may remain in effect despite the frustration of purpose unless specific conditions allow for termination under relevant jurisdictional laws. This means that while the purpose may be frustrated, it does not automatically dissolve the lease, making the other options less accurate in describing the legal implications of frustration of purpose in lease agreements.