Term
| 6 ways to discharge contract duties |
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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 |
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Definition
Fulfilling the contract terms
When is the performance good enough? |
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Term
| Reasonable Expectation Test |
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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 |
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Definition
| occurs where there is a breach of contract, but it is minor in light of entire contract. (Contract price - any damage charge) |
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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) |
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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. |
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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) |
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Term
| Time is of the essence clause |
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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. |
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Term
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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 |
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Term
| Occurrence or Failure of a Condition |
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Definition
Condition Precedent
Condition Subsequent
Concurrent Condition |
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Term
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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) |
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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.) |
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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) |
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Term
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Definition
Voluntary Rescission
Novation
Accord and satisfaction
Waiver |
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Term
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Definition
| occurs when all parties to the contract agree to cancel it. |
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Definition
| occurs when the parties agree to cancel the old contract and enter into a new one. |
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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. |
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Definition
| is a voluntary acceptance by one party of the inadequate performance of the other |
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Term
| Discharge by Operation of Law |
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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 |
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Term
| Impossibility can happen in 4 different ways: |
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Definition
1. death or incapacity if an essential party
2. Destruction of the subject matter
3. intervening illegality
4. unforeseeable, drastic change |
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Term
| Compliance with a court-ordered remedy |
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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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