Ch. 18 Flashcards
Condition Precedent
Something that needs to take place fro the deal to happen.
Condition Concurrent
A deal that relies on Exchange
Condition Subsequent
If a certain event takes place the contract ends
Covenant
Promises Major-material, and Minor-Nonmaterial
To Offer Performance
Tender
Types Of Tender
- Tender of Performance
- Tender of payment
Time of Performance
When Time is a material term, then it is said that “time is of the essence”
Replace defective goods with conforming good when time is not of the essence
Curative Tender
Adequacy of Performance
Substantial Performance Doctrine
Holds that if a party has performed a contract substantially but not perfectly, then that party will be allowed the contract price less set-off, if the defects are not intentional, nor material/major.
Subsantial performance Doctrine
Can an agreement be discharged if there are terms in the contract on how to exit it?
yes
T/F can Mutual Cancelation be considered Discharge by Agreement?
True
T/F Mutual Recission (return of consideration) can be a discharge by agreement.
True
Substitution is a type of Discharge of Agreement, define it
New contract in place of the former, same parties new agreement
Discharge of Agreement, Novation
Same contract different parties, one party is swapped for another
Discharge of Agreement, Accord and Satisfaction
Paying part of debt
Standard of Imposibility
is Objective, and not subjective. It can not be done.
Frustration of Purpose
“Because of a change in circumstances, the purpose of the contract may have no value to the party entitled to receive performance. In such a case, performance may be excused if both parties were aware of the purpose and the event that frustrated the purpose was unforeseeable”
Commercial Impracticality UCC
Outside the reasonable expectation that shifts risks on one side
Forms of Imposibility
- Destruction of Subject Matter
- Change of Law
- Death of party
- Disability of Party
- Act of other party- “When the promisee prevents performance or otherwise makes performance impossible, the promisor is discharged from the contract”
When the promisee prevents performance or otherwise makes performance impossible, the promisor is discharged from the contract
Act of other party
Do Temporary Impossibilities Terminate the Contract
No, they may only delay performance
Sometimes parties agree to a shorter time period within which lawsuits must be filed, these will be much shorter
Contractual Limitation
Provides a time period within which lawsuits must be filed
Statute of Limitations
