Ch 9 Vocab Crc Bus Law

Front 1

Privity of Contract

Back 1

The relationship that exists between the promisor and the promise of a contract.

Front 2

Breach of Contract

Back 2

Failure, without legal excuse, of a promisor to perform the obligations of a contract.

Front 3

Assignment

Back 3

The transfer to another of all or part of one’s rights under a contract.

Front 4

Assignor

Back 4

A party who transfers (assigns) his or her rights under a contract to another party.

Front 5

Assignee

Back 5

A party to whom the rights under a contract are transferred, or assigned.

Front 6

Obligee

Back 6

One to whom an obligation is owed.

Front 7

Obligor

Back 7

One who owes an obligation to another.

Front 8

Alienation

Back 8

The voluntary transfer of land out of one’s possession (thus “alienating” the land from oneself).

Front 9

Delegation of Duties

Back 9

The transfer to another of all or part of one’s duties under a contract

Front 10

Delegator

Back 10

A party who transfers (delegates) her or his obligations under a contract to another party.

Front 11

Delegatee

Back 11

A party to whom contracted obligations are transferred, or delegated.

Front 12

Third Party Beneficiary

Back 12

One for whose benefit a promise is made in a contract but who is not a party to the contract.

Front 13

Intended Beneficiary

Back 13

A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if the contract is breached.

Front 14

Incidental Beneficiary

Back 14

A third party who benefits from a contract even though the contract was not formed for that purpose. An incidental beneficiary has no rights in the contract and cannot sue to have it enforced.

Front 15

Discharge

Back 15

The termination of an obligation, such as occurs when the parties to a contract have fully performed their contractual obligations.

Front 16

Performance

Back 16

The fulfillment of one’s duties under a contract- the normal way of discharging one’s contractual obligations.

Front 17

Condition

Back 17

A qualification, provision, or clause in a contractual agreement, the occurrence of nonoccurrence of which creates, suspends, or terminates the obligations of the contracting parties.

Front 18

Condition Precedent

Back 18

A condition in a contract that must be met before a party’s promise becomes absolute.

Front 19

Condition Subsequent

Back 19

A condition in a contract that, if it occurs, operates to terminate a party’s absolute promise to perform

Front 20

Concurrent Conditions

Back 20

Conditions that must occur or be performed at the same time—they are mutually dependent. No obligations arise until these conditions are simultaneously performed.

Front 21

Tender

Back 21

An unconditional offer to perform an obligation by a person who is ready, willing, and able to do so.

Front 22

Anticipatory Reputation

Back 22

An assertion or action by a party indicating that he or she will not perform a contractual obligation.

Front 23

Novation

Back 23

The substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated

Front 24

Impossibility of Performance

Back 24

A doctrine under which a party to a contract is relieved of his or her duty to perform when performance becomes objectively impossible.

Front 25

Commercial Impracticability

Back 25

A doctrine that may excuse the duty to perform a contract when performance becomes much more difficult or costly due to forces that neither party could have controlled or contemplated at the time the contract was formed.

Front 26

Frustration of Purpose

Back 26

A court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party’s control).

Front 27

Incidental Damages

Back 27

Damages that compensate for expenses directly incurred because of a breach of contract, such as those incurred to obtain performance from another source.

Front 28

Consequential Damages

Back 28

Foreseeable damages that result from a party’s breach of contract but are caused by special circumstances beyond the contract itself.

Front 29

Nominal Damages

Back 29

A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.

Front 30

Mitigation of Damages

Back 30

The requirement that a plaintiff do whatever is reasonable to minimize the damages caused by the defendant.

Front 31

Liquidated Damages

Back 31

An amount, stipulated in a contract, that the parties to the contract believe to be reasonable estimation of the damages that will occur in the event of a breach.

Front 32

Penalty

Back 32

A contract clause that specifies a certain amount to be paid in the event of a default of breach of contract but that is designed to punish the breaching party rather than to provide a reasonable estimate of damages.

Front 33

Restitution

Back 33

An equitable remedy under which a person is restored to his or her original position prior to loss or injury, or placed in the position he or she would have been in had the breach not occurred.

Front 34

Specific Performance

Back 34

An equitable remedy in which a court orders the parties to perform as promised in the contract. This remedy normally is granted only when the legal remedy (monetary damages) is inadequate.