Term
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Definition
| an event whose happening or non-happening affects a party’s duty to perform under the contract |
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Term
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Definition
| contingency explicitly stated in the contract |
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Term
| Implied-In-Fact Condition – |
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Definition
| contingency understood by the parties to be part of the agreement, though not expressed |
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Term
| Implied-In-Law Conditions – |
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Definition
| contingency not contained in the contract but imposed by law |
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Term
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Definition
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Term
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Definition
| before performance is due |
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Term
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Definition
| an event that terminates a duty of performance; performance over time and something |
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Term
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Definition
| a condition that is the requirement that one party perform prior to the other is fulfilled upon that performance |
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Term
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Definition
| a condition that requires an event outside the control of the party is fulfilled when it occurs (Example: stock market) |
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Term
| Know the four methods of discharging a contractual duty, |
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Definition
Performance
Breach
Mutual Agreement
Operation of Law |
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Term
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Definition
| the most common; the party doesn’t do what it is obligated to do |
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Term
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Definition
| wrongful failure to perform mandatory duties under a contract |
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Term
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Definition
| non-performance that significantly impairs the injured parties rights under the contract and may discharge the injured parties from any further duty |
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Term
Know the difference between dependent and independent covenants and the effect of breaching either type
-Dependent – |
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Definition
| one breaches / both terminated; only dependent duties are discharged |
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Term
Know the difference between dependent and independent covenants and the effect of breaching either type
-Independent – |
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Definition
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Term
| Prevention of Performance – |
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Definition
| interference with or preventing performance |
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Term
| Substantial Performance – |
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Definition
| incomplete performance that does not defeat purpose of the contract; does not discharge injured party; no material breach |
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Term
| Anticipatory Repudiation – |
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Definition
| an inability or refusal to perform, before due; clearly expressed; treated as a breach, allowing the non-repudiating party to bring suit immediately |
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Term
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Definition
| an agreement between the parties to terminate their respective duties |
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Term
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Definition
| a new contract accepted by both parties |
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Term
| Accord and Satisfaction – |
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Definition
| substitution of new duty under a contract (accord) and the discharge of the prior contractual obligation by performance of the new duty (satisfaction); for disputes |
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Term
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Definition
| traditionally, a substituted contract involving a new third-party promisor or promisee |
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Term
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Definition
| performance of contract cannot be done |
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Term
| Destruction of Subject Matter – |
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Definition
| discharges contract if it occurs without the promisor’s fault (Ex: tree destroys rare car) |
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Term
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Definition
| if performance becomes illegal or impractical as a result of a legal change, the duty is discharges |
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Term
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Definition
| principle purpose of a contract cannot be fulfilled because of a subsequent event |
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Term
| Commercial Impracticability – |
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Definition
| performance can be accomplished only under unforeseen and unjust hardship (Ex: bridge ruined by hurricane; unable to transport goods) |
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Term
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Definition
| discharged if debtor obtains an order of discharge by the bankruptcy court |
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Term
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Definition
| after the statute of limitations has run, debt is not discharged, but a creditor cannot being action against a debtor |
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Term
| Be able to determine which party or parties are discharged from their obligations depending on the method of discharge (See chart below) |
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Definition
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