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BLS test 3
Chapter 20-discharge and remedies
26
Business
11/29/2010

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Term
conditional contracts
Definition
contracts containing conditions affecting the performance obligations of the parties
Term
condition precedent
Definition
particular event that must occur in order for a party's duty to arise
Term
condition subsequent
Definition
future event that terminates the obligations of the parties when it occurs
Term
concurrent conditions
Definition
occur when each party's performance is conditioned on the performance of the other
Term
express conditions
Definition
explicitly stated in the contract and are usually preceded by words such as conditioned on, provided that, or when
Term
implied conditions
Definition
those that are not explicitly stated but are inferred from the nature and language of the contract
Term
discharge by performance
Definition
parties discharge their obligations by doing what they respectively agreed to do under the terms of the contract
Term
tender
Definition
offer to perform and being ready, willing, and able to perform
Term
complete performance
Definition
occurs when all aspects of the parties duties under the contract are carried out perfectly
Term
substantial performance
Definition
occurs when:
1. completion of nearly all the terms of the agreement
2. an honest effort to complete all the terms
3. no willful departure from the terms of the agreement
Term
breach
Definition
occurs whenever a party fails to perform her obligations under the contract
Term
material breach
Definition
discharges the nonbreaching party from his obligations under the contract; occurs when a party unjustifiably fails to substantially perform his obligations under the contract
Term
novation
Definition
the parties to the agreement wish to replace one of the parties with a third party
Term
objective impossibility
Definition
it is in fact not possible to lawfully carry out ones contractual obligations
Term
subjective impossibility
Definition
very difficult to carry out the contract
Term
commercial impracticability
Definition
used when performance is still objectively possible but would be extraordinarly injurious or expensive to one party
Term
legal damages
Definition
monetary damages including compensatory, punitive, nominal, liquidated damages
Term
compensatory damages
Definition
damages designed to put the plaintiff in the position he would have been in had the contract been fully performed
Term
consequential or special damages
Definition
forseeable damages that result from special facts and circumstances arising outside the contract itself; must be within the contemplation of the parties at the time the breach occurs
Term
punitive damages
Definition
designed to punish the defendant and deter him and others from engaging in similar behavior in the future
Term
nominal damages
Definition
no actual damages resulted from the breach of contract; serves to signify that the plaintiff has been wronged by the defendant
Term
duty to mitigate one's damages
Definition
plaintiff must demonstrate that he used reasonable efforts to minimize the damage resulting from the breach
Term
rescission
Definition
termination of the contract
Term
restitution
Definition
the return of any property given up under the contract
Term
specific performance aka specific enforcement
Definition
order requiring that the breaching party fulfill the terms of the agreement
Term
injunction
Definition
order either forcing a person to do something or prohibiting a person from doing something