Ch. 10: Discharge of Obligations

Question 1

accord and satisfaction

Answer 1

new contract based on parties’ agreement to settle dispute existing under a contract

Question 2

anticipatory breach

Answer 2

positive, unconditional, and unequivocal words that a party intends to breach his contractual obligations

Question 3

breach

Answer 3

breaking one’s contractual promise

Question 4

condition

Answer 4

a fact or event, the happening or nonhappening of which creates or extinguishes an absolute duty to perform

Question 5

divisible contract

Answer 5

contract capable of being broken down intro several equal agreements

Question 6

frustration of purpose

Answer 6

purpose for which the contract was formed no longer exists

Question 7

impossibility of performance

Answer 7

promisor’s performance is incapable of being fulfilled due to outside forces

Question 8

material breach

Answer 8

breach of contract that goes to the heart of the agreement

Question 9

minor breach

Answer 9

breach of contract that goes to an insignificant aspect of the contract

Question 10

mitigation of damages

Answer 10

duty imposed on injured party to lessen, by reasonable means, the breaching party’s liability

Question 11

mutual rescission

Answer 11

agreement by both contracting parties to do away with the contract

Question 12

novation

Answer 12

substitution of contracting parties

Question 13

release

Answer 13

contract relieving promisor from an obligation under an existing contract

Question 14

substituted agreement

Answer 14

a new contract that incorporates the original contract in the new provisions

Question 15

supervening illegality

Answer 15

change in law that makes the performance of the contract illegal

Question 16

tender complete performance

Answer 16

being ready, willing, and able to perform

Question 17

voluntary disablement

Answer 17

volitional act by a promisor that makes her obligation virtually incapable of being performed