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B-Law Exam 3
Chapter 13
21
Management
Undergraduate 3
11/11/2012

Additional Management Flashcards

 


 

Cards

Term
6 ways to discharge contract duties
Definition
Complete Performance
Material Breach
Occurrence of Failure of a condition
Agreement of the parties
Discharge by operation of law
Compliance with a Court-Ordered remedy
Term
Complete Performance
Definition
Fulfilling the contract terms

When is the performance good enough?
Term
Reasonable Expectation Test
Definition
states that a performing party is released by complete performance when he meets the reasonable expectations of the other party in light of the entire contract
Term
Substancial Performance
Definition
occurs where there is a breach of contract, but it is minor in light of entire contract. (Contract price - any damage charge)
Term
Material Breach
Definition
Is a failure to fulfill a contractual obligation which is important in light of the entire of the contract. (suppose to build a house with walkout basement, but you build one on a concrete slab)
Term
Immaterial breach
Definition
is one which is unimportant in light of the entire contract: the breaching party has fulfilled substantial performance and still may recover with a reduction from the contract pice.
Term
Satisfaction Clause
Definition
requires one party to perform the contract to the satisfaction of the other party. (Artist suppose to make a painting for me but i do not like the painting)
Term
Time is of the essence clause
Definition
a clause in a contract that uses the words "__________________" to indicate that time of performance is essential to the contract, so any time delays will be considered a material breach.
Term
Anticipatory repudiation
Definition
is a material breach which occurs when, prior to the time performance is due, one party informs the other that it will not perform the contract
Term
Occurrence or Failure of a Condition
Definition
Condition Precedent
Condition Subsequent
Concurrent Condition
Term
Condition precedent
Definition
is a condition which must be fulfilled prior to a duty arising under the contract. (Insurance must see the damaged car before you get the money for it)
Term
Condition Subsequent
Definition
relieves a contratual duty after a certain event occurs. (Farmer who must inform the food distribution before july 1st that there has been a drought.)
Term
Concurrent Condition
Definition
is present in a contract when both parties performance is conditioned on the others simultaneous performance. (You must deliver the goods i am buying, and i must pay you at that moment in time. The failure of either of us to fulfill our part of the bargain relieves the other of the duty to perform)
Term
Agreement of the parties
Definition
Voluntary Rescission
Novation
Accord and satisfaction
Waiver
Term
Voluntary rescission
Definition
occurs when all parties to the contract agree to cancel it.
Term
Novation
Definition
occurs when the parties agree to cancel the old contract and enter into a new one.
Term
Accord and satisfaction
Definition
occurs where there is an agreement by one party to accept a performance which is different from that required by the contract, followed by the completion of that performance by the other party.
Term
Waiver
Definition
is a voluntary acceptance by one party of the inadequate performance of the other
Term
Discharge by Operation of Law
Definition
1. Bankruptcy
2. stature of limitation fore enforcing the contract expires, the contract which was enforceable is now unenforceable
3. an intentional material alteration of the contract by one party also results in a discharge by operation of law of the other party
4. contract may be discharged by operation of law through the doctrine of impossibility
Term
Impossibility can happen in 4 different ways:
Definition
1. death or incapacity if an essential party
2. Destruction of the subject matter
3. intervening illegality
4. unforeseeable, drastic change
Term
Compliance with a court-ordered remedy
Definition
If jones sues smith construction for 1,000,000 for breach of contract, and the court issues final judgement against Smith for only 10,000, smith construction is discharged when it pays the 10,000 whether or not the courts judgement was correct
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