Shared Flashcard Set

Details

Business Law Chapter 17
Business Law Chapter 17
20
Law
04/17/2011

Additional Law Flashcards

 


 

Cards

Term
Complete Performance
Definition
The performing party is relased due to complete performance when he meets the reasonable expectations of the other party in light of the entire contract
Term
Material Breach
Definition
A material breach is one which is important in light of the entire contract. If there is a material breach then the non-breaching parties duty of performance is discharged
Term
Immaterial breach
Definition
Unimportant in light of the entire contract -> still have substantially performed and may sue on the contract
Term
Substantial Performance
Definition
1. Performance where there is an immaterial breach
2. Substantial performance is a partial discharge of the performing party -> the performing party may still collect on the contract, but the other party is entitled to a reduction of payment because of the immaterial breach
Term
Three things affecting materiality of breach: Satisfaction Clause
Definition
1. If the contract is a matter of taste, then complete, personal satisfaction is required
2. If the contract is a matter of function, then reasonable satisfaction is required
Term
Three things affecting materiality of breach: Time is of the essence clause
Definition
1. Generally a reasonable time delay is an immaterial breach or not a breach at all
2. A "time is of the essence clause" converts an immaterial time delay into a material breach
Term
Three things affecting materiality of breach: Anticipatory Repudiation
Definition
One party informs the other that he will not perform the contract, prior to the time performance is due
Considered a material breach, even though there would have been time remaining for performance
Term
Occurrence or Failure of Condition: Condition Precedent
Definition
1. Event must happen before a contractual duty arises
2. Examples: Collision claim, bonus incentive
Term
Occurrence or Failure of Condition: Condition Subsequent
Definition
1. Contractual duty is relieved after an event
2. Example: Notification of drought
Term
Occurrence or Failure of Condition: Concurrent Condition
Definition
1. Each party's duty conditioned on the other's simultaneous performance
2. Example: Bought on Craig's List
Term
Voluntary Rescission
Definition
An agreement by the parties to cancel the contract
Term
Novation
Definition
An agreement by the parties to cancel the old contract and enter a new contract
Term
Accord and Satisfaction
Definition
1. An agreement (accord) by one party to accept a performance which is different from that required by the contract, followed by a completion (satisfaction) of that performance by the other party
Term
Waiver
Definition
1. A voluntary acceptance of inadequate performance, or a pattern or conduct which implies a waiver of breach of contract
Term
Discharge By Operation of Law: Bankruptcy
Definition
1. Bankrupty cancels most debts of the bankruptcy debtor
2. Exceptions: student loads, child support
Term
Discharge By Operation of Law: Statute of Limitations
Definition
When the time period set by status for filling a type of lawsuit expires, the breaching party's obligation is cancelled dischaged
Term
Discharge By Operation of Law: Alteration
Definition
1. Intentional, material alteration by one party discharges the other
Term
Discharge By Operation of Law: Four Types of Impossibility
Definition
1. Death or incapacity of an essential party
Destruction of an essential party
2. Destruction of subject matter of contract -> for example by fire
3. Intervening Illegality -> agreement becomes illegal between the time it is entered and the time performance is complete
4. Unforeseeable Change (Drastic Change)
Term
Unforeseeable Change: Commercial Frustration
Definition
A drastic, unforeseable change in the circumstances makes performance impossible
2. Commercial Impracticability (UCC Sales)
a. An event occurred, which parties assumed would not occur as basic part of contract, and
c. The event has an extreme effort on performance
Term
Compliance with Court Ordered Remedy
Definition
Breach of contract suit followed judgement and payment Breach of contract followed by judgment and payment