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19 Cards in this Set
- Front
- Back
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A condition that must be fulfilled before performance is required is a condition precedent. |
conditions precedent |
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When a condition operates to terminate a party’s duty to perform, it is a condition subsequent. Generally, conditions precedent are common; conditions subsequent are rare. The Restatement (Second) of Contracts does not use the terms. |
conditions subsequent |
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Concurrent conditions exist when each party’s performance is conditioned on the other’s simultaneous performance. |
concurrent conditions |
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__________ are supplied by the parties’ agreement. |
expressed conditions |
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____________ exist in the purpose of the agreement, the intent of the parties, or the performance of the contract. |
implied conditions |
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Ordinarily, express or implied-in-fact conditions must fully occur for ______________to take place. Any deviation operates as a discharge. |
compleste performance |
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The party must have performed in good faith.• Performance must not vary greatly from that promised in the contract.• Performance must create substantially the same benefits. |
sunstantial performance |
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When a contract requires performance to the satisfaction of a third party, a minority of courts require the personal satisfaction of the third party. Most courts require the work to be satisfactory to a reasonable person. |
reasonable person standard |
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If a breach is not material, the innocent party’s duty to perform may be only suspended until the breach is remedied.
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Material versus Minor Breach |
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When performance is not substantial, a breach is material—the nonbreaching party is excused from performing and can sue for damages. |
Material Breach of Contract |
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anticipatory repudiation |
If, before either party to a contract has a duty to perform, one of the parties refuses to perform, the other party is discharged. |
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Most contracts are discharged by _________—by doing what was promised. |
performance |
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In a case of_____________the parties must make another contract. |
mutual rescission |
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Oral rescission is generally enforceable unless the original contract was a contract for a_______________and required written rescission |
sale of good |
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Contracts that are_________ on both sides can be rescinded solely by agreement |
executory |
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Contracts that are executed on one side can be __________ only if the party who has performed receives consideration to call off the deal. |
rescinded |
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Novation substitutes a new party for an original party by agreement of all the parties. |
Discharge by Novation |
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Agreement A compromise, or settlement agreement may be substituted as a new contract, and revoke and discharge the obligations under the prior contract. A substituted agreement does not involve a third party. The two original parties form a different agreement to substitute for the original one. |
Discharge by settlement |
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An accord is an executory contract to perform an act to satisfy a contractual duty that has not been discharged. A satisfaction is the performance of the accord. An accord suspends the original obligation. The obligor discharges the obligation by performing the accord. If the obligor refuses to perform the accord, the obligee can sue on the original obligation or on the accord. |
Discharge by Accord and Satisfaction |
