Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
22 Cards in this Set
- Front
- Back
|
Reasonable expectations test
|
The performing party is released due to complete performance when he meets the reasonable expectation of the other party in light of the entire contract
|
|
|
Substantial performance
|
The performing party may still collect on the contract, but the other party is entitled to a reduction of payment because of the immaterial breach
|
|
|
Material breach
|
A breach important in light of the entire contract
|
|
|
Immaterial breach
|
A breach that is unimportant in light of the entire contract
|
|
|
Consequences of a material breach
|
The non breaching party's performance is discharged
|
|
|
Three things affecting materiality of breach
|
1. Satisfaction clause
2. "Time is of the essence" clause 3. Anticipatory repudiation |
|
|
Satification Clause
|
If contract is a matter of taste, then complete personal satisfaction is required.
If contract is a matter of function, only reasonable satisfaction is required |
|
|
"Time is of the essence" clause
|
Converts an immaterial time delay into a material breach
|
|
|
Anticipatory Repudiation
|
One party tells the other they will not perform the contract prior to the time performance is due.
A material breach, even though there is time remaining for performance. |
|
|
Condition precedent
|
Event must happen before a contractual duty arises.
Ex- collision claim, bonus incentive |
|
|
Condition Subsequent
|
Contractual duty is relieved after an event
Ex- Drought notification |
|
|
Concurrent condition
|
Each party's duty conditioned on the other's simultaneous performance
|
|
|
Voluntary recission
|
An agreement by the paries to cancel the contract
|
|
|
Novation
|
an agreement by the parties to cancel the old contract and enter a new one.
|
|
|
Accord and satisfaction
|
An agreement (accord) by one party to accept a performance which is different from that required by contract, followed by the completion (satisfaction) of that performance by the other party.
|
|
|
Waiver
|
A voluntary acceptance of inadequate performance, or a pattern of conduct which implies a waiver of breach of contract.
|
|
|
Bankruptcy
|
Bankruptcy cancels most debts of the bankruptcy debtor
exceptions- student loans, child support and taxes |
|
|
Statute of limitations
|
When the time period set by statute for filing a type of lawsuit expires, the breaching party's obligation is cancelled
Contract becomes unenforceable |
|
|
Alteration
|
Intentional material alteration by one party discharges the other
|
|
|
Impossibility
|
a.) Death or incapacity of an essential party
b.)Destruction of subject matter of contract c.) Intervening illegality- the agreement becomes illegal between the time it is entered and the time the performance is complete d.) Commercial frustration (common law)- A drastic unforseeable change in the circumstances that makes performance impossible |
|
|
Commercial impracticability
|
UCC
An event occurred which parties assumed wouldnt occur as basic part of contract Event has extreme effect on performance |
|
|
Compliance with court ordered remedy.
|
Breach of contract suit followed by judgement and payment
|
