CH 17 - Performance & Discharge

Question 1

conditions

Answer 1

possible future events, the occurrence or nonoccurrence of which will trigger performance of a legal obligation or terminate an existing obligation under a contract

Question 2

conditions precedent vs subsequent

Answer 2

precedent: a condition that must be fulfilled before a party’s performance can be required
subsequent: when a condition operates to terminate a party’s absolute promise to perform (as long as…)

Question 3

discharge by performance

Answer 3

the contract comes to an end when both parties fulfill their respective duties by performing the acts they promised

performance can also be accomplished by tender (unconditional offer to perform by a person who is ready,willing and able to do so)

Question 4

2 types of performance

Answer 4

complete: when a party performs exactly as agreed

Substantial: when a party who in good faith performs substantially all terms of contract

Question 5

performance to the satisfaction of a party

Answer 5

personal service contracts: service must satisfy the party involved

all other: contract needs to be performed to the satisfaction of a reasonable person

Question 6

material breach of contract

Answer 6

when performance is not at least substantial

nonbreaching party is excused from performance and can sue for damages

Question 7

anticipatory repudiation

Answer 7

either party can breach contract before performance is supposed to occur

when occurs: nonbreaching can sue for damages (treated as material breach)

Question 8

time of performance

Answer 8

time in which contract should be performed

if no time set, reasonable time is implied

Question 9

discharge by agreement

Answer 9

2 parties decide to discharge

Question 10

rescission

Answer 10

process by which contract is terminated and parties return to positions prior to contract

Question 11

mutual rescission

Answer 11

parties must make another agreement that also satisfies the legal requirements for a contract

Question 12

novation

Answer 12

both parties agree to sub a third party

must be: previous valid obligation, agreement by all parties to new contract, termination of old obligation, new valid contract

Question 13

accord and satisfaction

Answer 13

parties must agree to accept performance that is different from original performance