Breach and Discharge

Question 1

Breach

Answer 1

A breach occurs when a promisor has a duty and fails to perform it.

Question 2

Minor Breach

Answer 2

A minor breach is one where the obligee gains the substantial benefit of the promise, and their duty is not discharged.

Question 3

Material Breach

Answer 3

Where the nonbreaching party does not gain the substantial benefit of the promise, and has the right to all remedies.

Question 4

Discharge by Impossibility or Impracticability

Answer 4

An impossibility must be objective and must arise after the contract has been entered into.

Impracticability requires that the party to perform has encountered extreme and unreasonable difficulty and/or expense, and the difficulty was not anticipated.

Question 5

Discharge by Frustration of Purpose

Answer 5

Frustration of purpose occurs where (1) a supervening act, (2) unforeseen by the parties at the time of contracting, (3) completely or almost completely destroys the purpose of the contract, (4) of which both parties were aware at the time of contracting

Question 6

Discharge by Waiver

Answer 6

A condition of a contract may be waived by words or conduct indicating that the party will not insist on the condition being met.

Question 7

Discharge by Accord and Satisfaction

Answer 7

Where one party to an existing contract agrees to accept, in lieu of the agreed-upon performance, some other, different performance. This must be supported by consideration.