05.04.03 Bus-Law - Contracts Law - Terms & Remedies

Front 1

________ is the “price,” or dollar amount (not limited to dollars and cents) that the offeror expects to receive for his or her promise. The price can be anything that the law recognizes as consideration.

Back 1

Consideration

Front 2

In a ________ the first consideration is the “price” or the offeror’s promise, and the second consideration is the “price,” in the acceptance for the offeree’s promise.

Back 2

Bilateral Contract

Front 3

In a ________ the first consideration is the “price,” in the offer for the offeror’s promise and second consideration is the “price,” in the acceptance for the offeror’s performance.

Back 3

Unilateral Contract

Front 4

The ________ refers to the requirement that certain kinds of contracts be memorialized in a signed writing with sufficient content to evidence the contract. Traditionally, the statute of frauds requires a signed writing in the following circumstances: Marriage, Land, Executor (or Estate), Goods ($500 or more), and Surety issues.

Back 4

Statute of Frauds

Front 5

A ________ exists when there is a failure, without legal excuse, to perform according to the terms of a contract. A breach must be a “material” breach and must not be merely of a minor nature. A failure to perform a minor part of the contract is not considered a material breach.

Back 5

Breach of Contract

Front 6

To amount to a ________ , the non-performance of a contract must be such as to go to the essence of the contract and must be the type of breach that would discharge the injured party from further contractual duty. A breach by one party amounts to a discharge of the other party’s obligation under the contract. For example, a brief delay by one party in performance of a contract will not violate the essence of the contract unless there exists an express stipulation in the contract that time is of the essence and that performance on time was clearly an essential and vital part of the contract.

Back 6

Material Breach

Front 7

The party suffering a Breach of Contract is obligated to take all reasonable means to stop or reduce the damages. This is called the ________ and it means that the party that did not breach the contract can not just sit there and let the situation deteriorate without trying to do anything.

Back 7

Duty to Mitigate Damage

Front 8

________ is available against one who has breached a contract are restitution, damages, and specific performance. An award of damages for breach of contract is intended to place the injured party in the position it would have been in had the breach not occurred. Damages consist of both compensatory damages and punitive damages. However, a party may not receive double recovery for the same breach of contract.

Back 8

Judicial Relief or Remedies

Front 9

________ is defined as placing the non-breaching party to a contract in as good a position as if no contract had ever been made. This remedy returns the non-breaching party to their original condition.

Back 9

Restitution

Front 10

________ exist to compensate the injured party and make it whole to the extent its injury can be measured in terms of money. Offsetting the financial damages are available in a breach of contract action.

Back 10

Compensatory Damages

Front 11

________ exist not to compensate the injured party but to penalize a party or to act as a deterrent. These damages are awarded in addition to compensatory damages. This type damages are not available in breach of contract cases unless a legal wrong is proven independent of the breach of contract.

Back 11

Punitive Damages

Front 12

________ occurs when damages would be inadequate compensation for a breach of contract. In such a situation, the breaching party will be forced to perform the contract. This sanction is only available where the subject of the contract is unique such as with a rare work of art.

Back 12

Specific Performance

Front 13

A ________ refers to a fixed time period for filing a lawsuit from the time that the claim arose. If the lawsuit is not filed within this time period, the right to sue will expire forever. In some instances, a statute of limitations may be suspended (“tolled”) if the party to be sued can not be located or for certain other reasons which prevented the timely filing of a lawsuit. The purpose of statutes of limitations is to protect against stale lawsuits.

Back 13

statute of limitations

Front 14

________ is an amount that would allow the non-breaching party to buy a substitute for the benefit that would have been received if the contract had been performed. In cases where the cost of the substitute is speculative, the non-breaching party may recover damages in the amount of the cost incurred in performing that party’s obligations under the contract.

Back 14

Standard Measure of Compensatory Damages

Front 15

_________ is related to competency or mental capacity of the Parties to the contract. The lack of legal competency is known as the “lack of capacity.” Therefore, when infants reach the age of majority (adulthood), they may ratify—that is, approve or confirm—earlier contracts made during their minority and thus are bound by them.

Back 15

Executed Contract

Front 16

________ are measured by the difference between the contract price and the market price when the seller provides the goods, or when the buyer learns of the breach.

Back 16

Sale of Goods Compensatory Damages