Ch 13 Contract Performance, Breach & Remedies

Question 1

Contract defenses

Answer 1

Lack of voluntary consent can be used in defense

Question 2

Mistakes of fact

Answer 2

When parties enter contract with different understandings of one or more material facts relating to a contract’s performance

Question 3

Bilateral mistakes of fact

Answer 3

When parties interpret terms differently, a court may allow the contract to be rescinded

Question 4

Unilateral mistakes of fact

Answer 4

Mistakes from one party generally held to what happened

Question 5

Mistake of value (future market value)

Answer 5

Generally not rescinded, you should have known the risks/price

Question 6

Undue influence

Answer 6

When one party induces another to do something with a great influence over them.

Question 7

Duress

Answer 7

When a party entered a contract under fear or from a threat

Question 8

Discharge by Performance

Answer 8

Both parties fulfilled their respective duties by conducting acts as promised

Question 9

Measure of Damages

Answer 9

Cost to bring object of contract into compliance with terms if reasonable. If not, then it’s the difference in value between performance rendered and complete performance of the contract

Question 10

Material breach of Contract

Answer 10

Occurs when performance is not substantial. Discharges non-breaching party.

Question 11

Minor Breach

Answer 11

Non-breaching party’s duty to perform may be suspended until breach is remedied, then continued.

Question 12

Anticipatory Repudiation

Answer 12

Refusal of one party to carry out contractual obligations before either party can perform. Non-breaching party must mitigate damages (leaving apartments, they must look for someone to replace it before fining you)

Question 13

Discharge by Novation

Answer 13

NOT A DELEGATION; Substitution of a new third party for one of the original parties; must have: previous valid obligation, agreement by all parties, extinguish old obligations, and a new valid contract

Question 14

Discharge by Accord and Satisfaction

Answer 14

Parties must agree to accept performance that’s different from what was initially promised

Question 15

Discharge by Settlement/Agreement

Answer 15

Compromise that generally arises from genuine dispute over the obligations of a contract

Question 16

temporary Impossibility

Answer 16

Performance only delayed but will continue once delay is over

Question 17

Commercial Impracticability

Answer 17

Parties excused when it becomes too expensive/difficult, but the question is was that burden forseeable

Question 18

Frustration of purpose

Answer 18

Discharged if the reason you made the contract is no longer available due to an event that decreases the value (seeing queen from overpriced hotel room)

Question 19

Compensatory damages

Answer 19

Compensate for loss of bargain and replace what was lost/damaged

Question 20

Consequential damages

Answer 20

Loss of profits, breaching party knew it would cause you to suffer a loss

Question 21

Punitive damages

Answer 21

Punish those to prevent future occurrences, may be available from breach of contract and tort

Question 22

Nominal damages

Answer 22

Wrongdoing when no monetary loss is shown

Question 23

Liquidated damages

Answer 23

Specific amount agreed to be paid as damages in the event of future breach, typically unenforceable

Question 24

Rescission

Answer 24

Cancellation of contract

Question 25

Restitution

Answer 25

Both parties must return goods, property or funds

Question 26

Specific Performance

Answer 26

equitable remedy that calls for performance of act promised in the contract

Question 27

Reformation

Answer 27

Rewritten to reflect party’s true intentions, usually when a mutual mistake is made