Chapter 6: How Contracts Come To An End

Front 1

The act of ending a contract.

Back 1

Discharge

Front 2

The act of ending a contract.

Back 2

Discharge

Front 3

When one party to a contract fails to perform the duties spelled out by the contract

Back 3

Breach of Contract

Front 4

When one party to a contract fails to perform the duties spelled out by the contract

Back 4

Breach of Contract

Front 5

What are the two ways that contracts can be discharged?

Back 5

1. Discharge by performance
2. Discharge by agreement

Front 6

What are the two ways that contracts can be discharged?

Back 6

1. Discharge by performance
2. Discharge by agreement

Front 7

How are the majority of contracts discharged?

Back 7

By performance

Front 8

How are the majority of contracts discharged?

Back 8

By performance

Front 9

A series of activities that fulfills the purpose of a contract

Back 9

Performance

Front 10

A series of activities that fulfills the purpose of a contract

Back 10

Performance

Front 11

The point at which all of the terms of the contract have been carried out properly by both parties.

Back 11

Complete or Strict Performance

Front 12

What are the 4 types of discharge by performance?

Back 12

1.Time for performance
2. Satisfactory performance
3.Substantial performance
4. Tender of performance

Front 13

What if the contract does not state a specific time to complete performance?

Back 13

Courts will enforce “a reasonable time” period

Front 14

What are some examples of ''Time for performance"?

Back 14

Perishable items, holiday sales, tickets for events, hotel reservations on a specific date, courier or overnight services

Front 15

If time for performance is very important to the contract, the contract should include what words?

Back 15

“Tme is of the essence”

Front 16

In all contracts, the law requires that the services be performed in a ____________.

Back 16

Satisfactory manner

Front 17

In case of a dispute over what is considered "satisfactory," what test do the courts use to determine a verdict?

Back 17

“Reasonable Person Test”

Front 18

If the contract contains the words “to the other’s satisfaction”, do the court's usually apply the reasonable person test?

Back 18

No - the original party to the contract has to be satisfied in full before they are required to make payment.

Front 19

A situation in which a party has, in good faith, completed the major requirement of a contract, leaving only a few minor details unfinished.

Back 19

“Substantial Performance”

Front 20

What are the two ways a party can fulfill the terms of a contract?

Back 20

1. Performing an act
2. Paying Money

Front 21

An additional offer to do what you have agreed to do under a contract.

Back 21

Tender of performance

Front 22

What are the four ways to discharge a contract by agreement?

Back 22

1. Discharge by Mutual
Rescission
2. Discharge by Novation
3. Discharge by Substituted Agreement
4. Discharge by Accord and Satisfaction

Front 23

Occurs when parties cancel the contract and return themselves to the positions they occupied before the contract’s formation (as if the contract never took place.)

Back 23

Mutual Rescission (agreement)”

Front 24

Substitutes a new party for one of the original parties to the contract.

Back 24

Novation

Front 25

What are the four requirements of novation?

Back 25

1.Existence of a previous valid contract
2.Agreement by all parties to the new contract
3.Agreement to end the old contract by discharging the original party
4.Formation of a new, valid contract

Front 26

A legal way to settle a dispute by which one party agrees to accept less than the amount due as full payment

Back 26

Accord and Satisfaction

Front 27

The acceptance by the creditor to accept less

Back 27

Accord

Front 28

the amount agreed to

Back 28

Satisfaction

Front 29

What are the two ways that contracts can be discharged involuntarily?

Back 29

1. By impossibility of performance
2. By operation of law

Front 30

Refers to external conditions rather than an obligor’s personal inability to perform

Back 30

Impossibility of Performance

Front 31

What are some examples of "impossibility of performance?"

Back 31

1. Death or disability that prevents a personal service contract
2. Destruction of exact subject matter
3. Illegality

Front 32

(True/False)
A contract is not discharged when unforeseen events make performance more costly or difficult. (

Back 32

True;
these should be anticipated and allowed for in the contract)

Front 33

A material change in the terms of a written contract without consent of the other party.

Back 33

Alteration

Front 34

Establishes a time limit for suing in a civil case, based on the date when the breach occurred or was discovered

Back 34

Statute of Limitations

Front 35

What is the statute of limitations in Illinois for
a) written contracts
b) oral contracts

Back 35

Written Contracts: 10 years
Oral Contracts: 5 years

Front 36

(True/False)
Parties may by contract shorten the period of the SOL but they may never extend it beyond the state’s limit

Back 36

True

Front 37

The transfer of rights under a contract that does not require the other parties permission is called a _________________.

Back 37

Assignment

Front 38

異見

Back 38

/(n) different opinion/objection/

Hint 38

[いけん]

Front 39

The party who gets the rights in an assignment and are 3rd persons who were not part of the original contract

Back 39

Assignee

Front 40

Can a contract that is personal in nature or is a personal service contract be assigned?

Back 40

No

Front 41

Can rights be assigned if an assignment will increase or change the duties in an important way?

Back 41

No

Front 42

Do contract assignments need to be done in writing?

Back 42

No

Front 43

一同

Back 43

/(n) all present/all concerned/all of us/(P)/

Hint 43

[いちどう]

Front 44

A deliberate deception intended to serve an unfair and unlawful gain

Back 44

Fraud

Front 45

This type of fraud takes the form of words/writings

Back 45

Express Misrepresentation

Front 46

What type of fraud is a lie that may also be actions a seller uses to hide or cover up a defect

Back 46

Misrepresentation by Conduct

Front 47

What type of fraud is an inaction when people don’t say anything when they should say something

Back 47

“Misrepresentation by Silence (Passive Fraud)”

Front 48

一帯

Back 48

/(n) a region/a zone/the whole place/(P)/

Hint 48

[いったい]

Front 49

What is the remedy for negligent misrepresentation?

Back 49

1. The innocent party may rescind the contract
2. The innocent party will not be allowed to sue for damages

Front 50

What are the 2 remedies for fraud?

Back 50

1.Rescind the contract and seek restoration of his/her position before the contract .

2. Enforce the contract and seek damages for injuries caused by the fraud.

Front 51

Occurs when a person who is involved in contract negotiations says something that he or she believes to be true but it turns out to be false

Back 51

Misrepresentation

Front 52

An error on the part of one of the parties to the contract

Back 52

Unilateral Mistake

Front 53

What are the 2 types of unilateral mistakes?

Back 53

1. Mistake as to the Nature of the Agreement
2.Mistake as to Value

Front 54

An error that is made on the part of both parties to the contract

Back 54

Bilateral Mistake

Front 55

A mistake may be made as to the possibility to perform (if the duty or performance cannot take place, the contract is ended

Back 55

Bilateral Mistake as to Performance

Front 56

営む

Back 56

/(v5m) to carry on (e.g. in ceremony)/to run a business/(P)/

Hint 56

[いとなむ]