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23 Cards in this Set
- Front
- Back
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Breach of contract
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A contracting party's failure to perform an absolute duty owed under a contract.
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Complete performance
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A situation in which a party to a contract renders performance exactly as required by the contract. Complete performance discharges that party's obligations under the contract.
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Tender of performance
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An unconditional and absolute offer by a contracting party to perfrom his or her obligations under a contract. Also known as tender
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Substantial performance
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Performance by a contracting party that deviates only slightly from complete performance.
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Minor breach
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A breach that occurs when a party renders substantial performance of his or her contractual duties.
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Material breach
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A breach that occurs when a party rendera inferior performance of his or her contractual duties. Nonbreaching party may recover damanges caused by the breach.
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Inferior performance
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A situation in which a party fails to perform express or implied contractual obligations and impairs or destroys the essence of a contract. The non breaching party may either 1. rescind the contract and recover restitution or 2. Affirm the contract and recover damages.
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Anticipatory breach
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A breach that occurs when one contracting party informs the other that he or she will not perform his or her contractual duties when due.
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Monetary damanges
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An award of money
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Conpensatory damages
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Ana ward of money intended to compensate a nonbreaching party for the loass of the bargain. Compensatory damages place the nonbreaching party in the same position as if the contract had been fully performed by restoring the "benefit of the bargain"
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Mitigation
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A nonbreaching party's legal duty to avoid or reduce damages caused by a breach of contract.
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Consequential damages
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Foreseeable damages that arise from circumstances outised a contract. To be liable for these damages, the breaching party must know or have reason to know that the breach will cause special damages to the other party.
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liquidated damages
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Damages that parties to aocontract agree in advance should be paid if the contract is breached.
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Nominal damages
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Damages awarded when the nonbreaching party sues the breaching party even though no financial loss has resulted from the breach. Nominal damages are usually $1 or some other small amount.
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Writ of attachment
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An order of the court that enables a government officer to seize property of the breaching party and sell it at auction to satisfy a judgement.
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Writ of garnishment
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An order of the court that orders that wages, bank accounts, or other property of the breaching party held by third persons be paid to the nonbreaching party to satisfy a judgement.
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Rescission
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An action to rescind (undo) a contract. Rescission is available if there has been a material breach of contract, fraud, duress, undue influence, or mistake.
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Restitution
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The return of goods or proprety received from the ohter party to rescind a contract. If the actual goods or property are not available, a cash equilvaent must be made.
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Specific performance
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A remedy that orders the breaching party to perform the acts promised in the contract. Usually awarded in cases in which the subject matter is unique, such as contracts involving land, heirlooms, and paintings.
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Reformation
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An equitable doctrine that permits the court to reqrite a contract to express the parties' true intentions.
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Injunction
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A court order that prohibits a person from doing a certain act.
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International interference with contractual relations
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A tort that arises when a third party induces a contracting party to breach the contract with another party.
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Covenant of good faith and fair dealing
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An implied covenant under which the parties to a contract not only are held to the express terms of the contract but are also required to act in "good faith" and deal fairly in all respects in obtaining the objective of the contract.
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