Contract Law Flash Cards 11

Front 1

Express Condition

Formula

Back 1

If x, then y: If not x, then no y.

Front 2

Express Condition

Definition

Back 2

Event, not certain to occur, which must occur before performance under a contract becomes due.

Front 3

Must differentiate a condition from this action

Back 3

A Promise

Front 4

Promise (Not Condition)

Back 4

“Manifestation of intention to act or refrain from acting in a specific way so made as to justify a promise that understanding that a commitment has been made”

Front 5

Breach from a Promise

Back 5

(1) Can sue for damages if someone breaches a promise
BUT
(2) Doesn’t cancel the other party’s obligation under the contract

Front 6

Not performing a condition results in this

Back 6

Recission/Cancellation of the Contract

Front 7

A Promise is a legally enforceable agreement that one party ______________, not that __________________.

Back 7

(1) One party will do something

(2) One party will do something if the other party does something first

Front 8

Promise v. Condition

Default Rule

Back 8

When it is doubtful whether words create a promise or a condition, they will be construed as creating a promise because there is a general legal policy opposed to forfeitures.

Front 9

Insurance Claim will cover your medical costs if you get sick...

(1) What's the condition... Why?

Back 9

(1) Condition is if I get sick, because it's an event not certain to occur.

Front 10

Once determined it's an express conditions (not a constructive condition), what is required

Back 10

Have to be performed precisely and to the letter

Front 11

Once determined it's an express conditions (not a constructive condition), this will not do...

Back 11

Substantial Performance

Front 12

In order for an express condition to be effective, it should be _____(1)______ and _____(2)_______ into the document.

Back 12

(1) Carefully Drafted
AND
(2) Integrated

Front 13

Breakdown of a contract

(1) Parties always include at least ______(1)____ in their contract (otherwise, there’s no contract.)
(2) Parties may ______(2)________ in their contract.

Back 13

(1) One Promise

(2) Choose to put conditions

Front 14

Express Conditions

If parties choose to put conditions in their contract, the condition _____________ for a dependent duty on other party to arise.

Back 14

Must occur perfectly

Front 15

Express Conditions

If you have an express condition that you must perform, that condition must occur perfectly in order for this to occur.

Back 15

The dependent duty on the other party to arise (awake the dog).

Front 16

What happens, first, and what doesn't happen, second, if you don't perform an express condition

Back 16

(1) Contract is cancelled

(2) Can't sue for damages

Front 17

Cannot sue for damages for this.

Back 17

Non-performance of an express condition

Front 18

Great analogy for an express condition

Back 18

Sleeping Dog that's always there, and only gets woken up when the other party performs the express condition.

Front 19

Express Conditions and the Sleeping Dog Analogy

If the express conditions is not performed perfectly, this is the result.

Back 19

The dog keeps on sleeping (No duty to the other party arises)

Front 20

Express Conditions

Result of not meeting all the express conditions

Back 20

The other party does not need to perform and the contract is void.

Front 21

Substantial, and not complete, compliance with an express condition is ________________.

Back 21

Not sufficient

Front 22

Condition v. Promise

The provisions of a contract will not be construed as an______(1)________ in the absence of language plainly requiring such construction, but not require __________(2)______.

Back 22

(1) Express Conditions

(2) Exact Language

Front 23

Express Conditions

Parties shall be strictly held to express conditions of a contract so long as it does not appear to do this.

Back 23

Violate public policy on its face

Front 24

4 Ways to Excuse the Non-Occurrence of an Express Condition

Back 24

(1) Waiver
(2) Prevention/Hindrance
(3) Public Policy / Unconscionability

Front 25

Way to Excuse the Non-Occurrence of an Express Condition

Waiver

Back 25

(1) the party whose duty is subject to the condition manifests an intention to perform their duty despite the non-occurrence of the condition;
AND
(2) the condition is not a material part of the agreed exchange.

Front 26

Waiver

The only party who can waive the condition.

Back 26

The party whom the condition is intended to benefit (The book publisher who is restricting the writer from drinking).

Front 27

Waiver

The Result of Waiving an Express Condition

Back 27

Once you've waived a condition precedent, you can’t bring it back.

Front 28

Way to Excuse the Non-Occurrence of an Express Condition

Prevention/Hindrance

Back 28

A party has implied obligation not to do anything that would prevent, hinder, or delay performance of a condition precedent.

Front 29

Prevention/Hindrance

Where a promisor ________(1)_______ the fulfillment of a condition, and the condition would have occurred except for such hindrance or prevention, the __________(2)_______

Back 29

(1) Prevents or hinders

(2) Performance of the Condition is excused

Front 30

If a condition is excused or waived, what happens to the non-conditioned party's obligations?

Back 30

They survive and their responsibilities are fixed despite nonperformance.

Front 31

IMPORTANT:

This is not enough for an express condition!!

Back 31

Substantial Performance (Exact performance is required)

Front 32

Express Conditions should be listed as _______(1)________, and not _______(2)_________

Back 32

(1) Conditions

(2) Contingencies

Front 33

For a claim of prevention/hindrance by the non-promising party, the court must be satisfied of this to excuse the non-performance.

Back 33

That the action of the promising party was the direct cause of the non-performance