Breach Flashcards
When does a Breach excuse performance of the other party?
A breach occurs when a promisor has a duty and fails to perform it. Under the common law, the breach must be material—a minor breach may suspend the duty of performance, but does not excuse it.
What is an Anticipatory repudiation?
Anticipatory repudiation occurs where the promisor, prior to the time set for performance of his promise, unambiguously indicates he will not perform when the time comes. Anticipatory repudiation by one party excuses the other party’s duty to perform.
What is the Implied Covenant of Good Faith & Fair Dealing?
The implied covenant of good faith and fair dealing exists in every contract. It requires that both parties do nothing to prevent performance by other party (i.e. terminating an employee for refusing to perform an illegal act, or bad faith insurance practice of denying legitimate coverage)
