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Separate the promised service from alternative performance

In a case applying Rhode Island law, the First Circuit held that 2020 emergency orders substantially frustrated implied contracts for in-person University of Rhode Island instruction and certain in-person student services; it also recognized that remote or adapted services fulfilled other fee promises. For a government-action dispute, preserve the exact advertised or written promise, what the order prevented, when the contract was partly performed, and what substitute performance was delivered. This judicial analysis does not decide whether an insurance policy covers a loss. 1,2,3

What Is Contract Frustration?

Contract frustration may fit your business when an international contract is exposed to political disruption or government action. If your main risk is a customer who cannot pay, compare trade-credit coverage instead. Read the national Contract frustration guide.

What to Watch for in Rhode Island

  • Record the principal service or outcome the contract actually promised

    In Burt v. URI, the First Circuit applying Rhode Island law distinguished the promise of in-person, on-campus instruction and access to facilities from services that URI continued to provide remotely or by adaptation. The court found frustration for specified in-person contracts after emergency orders barred campus access, while concluding that other fee obligations were performed. Preserve the order, contract or catalog language, date the agreement began, and evidence of the service actually received. 1

  • Track partial performance and each substitute separately

    The First Circuit’s analysis required a partially performed contract, a later supervening event whose absence was a fundamental assumption, and substantial frustration of the contract’s principal purpose. In the same case, access to the Memorial Union, fitness center, and shuttle was treated differently from technology and health-service fees. List each deliverable, amount, start and end date, and substitute offered; do not treat all losses during an order as the same contract event. 1

  • If the agreement is a goods purchase, check the buyer’s response window

    Rhode Island’s UCC sections 6A-2-615 and 6A-2-616 concern a seller’s delay or nondelivery under a goods contract after an assumed contingency or good-faith government-order compliance. The seller may have to allocate fairly and notify the buyer seasonably; the buyer may then give written notice to terminate the affected unexecuted delivery or take an available quota. If the buyer does not modify within a reasonable time, no more than 30 days, the affected delivery lapses. This is not a general rule for service contracts. 2,3

Who Regulates Insurance in Rhode Island

Rhode Island Department of Business Regulation, Insurance Division

The DBR Insurance Division provides an online public verification service for producers, adjusters, surplus-lines brokers, and other licensees, and accepts insurance complaints online. Contact the Division for help determining whether it has authority over a particular policy or dispute. 4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 4% of net taxable premium; 2018 filing guide excludes listed broker, carrier and inspection fees Rhode Island’s 2024 return applies 4% to net taxable premium (gross premium less returned premium); its 2018 filing guide excludes broker, carrier, and inspection fees from the base. Confirm fee treatment with the Division of Taxation if your bill separates those charges, because no newer official fee-base guidance was located. 7,8

Providers With Documented State Licenses

No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in Rhode Island

  1. What exact service, event, property use, or other result did the contract promise, and was that promise express or shown by the incorporated description or prior course of dealing?
  2. Which government order applied, when did it prevent performance, and had the parties already partly performed the agreement?
  3. What in-person or other substitute was provided, and does the agreement treat it as equivalent, a partial remedy, or no performance?
  4. If goods were delayed, what written notice did the seller give and by when must the buyer accept an available quota or terminate affected deliveries?

Contract Frustration in Rhode Island: FAQ

Does a Rhode Island order automatically cancel or excuse every affected contract? 1

No. In Burt, the First Circuit applying Rhode Island law examined the specific promises, contract stage, scope of government orders, and substitutes delivered. Its results differed among instruction, facility access, and other student-fee obligations. 1

Do Rhode Island UCC §§6A-2-615 and 6A-2-616 cover all contracts? 2,3

No. They address goods sellers’ delay or nondelivery and the buyer’s response to that seller notice. They should not be applied automatically to a service, lease, education, or event contract. 2,3

Contract Frustration in Other States

Other Coverage in Rhode Island

Sources

  1. Burt v. Board of Trustees of the University of Rhode Island, Nos. 23-1188, 23-1192. United States Court of Appeals for the First Circuit, opinion hosted by U.S. Government Publishing Office; Decided October 13, 2023; pp. 18–20, Rhode Island substantial-frustration elements and in-person tuition contract; pp. 28–31, facility, shuttle, remote/adapted-service distinctions and affirmance; federal appellate court applying Rhode Island law to COVID-era student contracts. Accessed 2026-09-28.
  2. Rhode Island General Laws §6A-2-615, Excuse by failure of presupposed conditions. Rhode Island General Assembly; Current official online codification accessed September 28, 2026; subsections (a)–(c), sale-of-goods seller’s government-order/impracticability rule, fair allocation and seasonable notice; section history cites P.L. 1960, ch. 147, §1. Accessed 2026-09-28.
  3. Rhode Island General Laws §6A-2-616, Procedure on notice claiming excuse. Rhode Island General Assembly; Current official online codification accessed September 28, 2026; subsections (1)–(3), buyer’s written right to terminate affected unexecuted goods deliveries or modify for quota, max. 30-day response, limits on contracting out; history includes P.L. 2014, ch. 528, §43. Accessed 2026-09-28.
  4. rhode-island insurance regulator. State insurance regulator; DBR Insurance Division overview links to complaint, license lookup, statutes, and regulations. Accessed 2026-09-28.
  5. DBR License Status Verification. State insurance regulator; Official page identifies online NAIC-partnered status checks for producers, adjusters, motor vehicle appraisers, surplus-lines brokers, and reinsurance intermediaries. Accessed 2026-09-28.
  6. DBR Insurance Consumers. State insurance regulator; Official consumer page explains the division's regulated insurance lines and online complaint route. Accessed 2026-09-28.
  7. 2025 T-71A Surplus Line Broker Return of Gross Premiums. Rhode Island Division of Taxation; 2025 return, p. 1, lines 1–4: net taxable premium is gross premium less returned premiums; 4% tax; filing due April 1, 2026. Accessed 2026-09-28.
  8. Guide to Tax Filings for Surplus Lines. Rhode Island Division of Taxation; 2018 Guide to tax filings, surplus-lines section: gross premium for tax purposes excludes carrier, broker, and inspection fees; no newer official fee-base instruction located as of 2026-09-28. Accessed 2026-09-28.
  9. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  10. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  11. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  12. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  13. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  14. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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