Breach (CORE)

Question 1

When does breach of contract occur

Answer 1

on failure of an absolute duty to perform

Question 2

types of breach of contract (5)

Answer 2

1. actual/present breach
2. anticipatory repudiation
3. wrongful prevention/hindrance of condition
4. gross forfeiture
5. waiver or estoppel

Question 3

actual/present breach

Answer 3

when one of the parties fails to perform, a breach of contract occurs

Question 4

types of actual/present breach (2)

Answer 4

1. material breach
2. minor breach

Question 5

material breach

Answer 5

breach is material if the obligee does not receive the substantial benefit of the bargain

Question 6

result of material breach

Answer 6

nonbreaching pt is discharged from duty and has a right to remedies

Question 7

failing to perform by stated time exception to material breach (+ exception to exception)

Answer 7

failing to perform by stated time is not material if done w/in reasonable time; BUT if timely performance essential to K, or K expressly provides time is of essence, failure is material

Question 8

minor breach

Answer 8

breach is minor if obligee receives the substantial benefit of the bargain despite obligor’s defective performance

Question 9

result of minor breach

Answer 9

nonbreaching pt still has duty to perform but may seek damages

Question 10

anticipatory repudiation

Answer 10

unequivocal statement/conduct indicating pt will commit a breach (before deadline) can be treated as immediate breach

Question 11

“unequivocal” def’n for anticipatory repudiation

Answer 11

not merely prospective inability to perform, manifested by doubt

Question 12

components of anticipatory repudiation (3)

Answer 12

1. failure to provide reasonable assurances
2. retraction
3. effects

Question 13

anticipatory repudiation: failure to provide reasonable assurances

Answer 13

w/in reasonable time (30 days) treated as immediate breach

Question 14

anticipatory repudiation: retraction

Answer 14

repudiating party may retract repudiation

Question 15

anticipatory repudiation: retraction exceptions (3)

Answer 15

1. other party acts in reliance under repudiation
2. other party accepts reputation (signals it to repudiating party), OR
3. other party brings suit

Question 16

anticipatory repudiation: effects (4)

Answer 16

if repudiated, aggrieved pt may:
1. sue immediately,
2. wait,
3. discharge K, OR
4. urge pt to perform

Question 17

anticipatory: what may insecure party do if repudiation cannot be established but there are reasonable grounds for insecurity?

Answer 17

demand adequate assurance of performance

Question 18

gross forfeiture (boc)

Answer 18

fulfilling condition results in a large loss

Question 19

waiver or estoppel (boc)

Answer 19

material change of position of one party in reliance of waiver indicated by other party