Changes to Contract obligations Flashcards
What is recission?
The mutual cancellation of a K.
When does recission arise?
If some performances obligations remain for each party and they both agree to rescind the K.
Is consideration required for recession?
Yes unless K is governed by UCC
What is modification?
Parties to a K agree to accept a new agreement in place of the existing K.
Does medication require consideration?
Yes unless governed by the UCC
What is accord and satisfaction?
satisfying the accord is a condition for fulfillment of original K obligations
What is novation?
parties agree to substitute a new party to perform.
If there is novation, what are the original party’s obligations?
Excused from performance and no longer has any K obligations
What is the difference between novation and delegation?
Delegation does not require both parties’ agreement and does not excuse the delegator’s liability on the K.
What is accord and satisfaction?
When both parties to an existing agreement agree to accept different performance in satisfaction of the existing obligation.
What is accord?
Agreement to accept alternative performance in satisfaction of the existing obligation
What is satisfaction?
completion of the alternative performance.
What is the legal affect of accord and satisfaction?
It excuses the original obligation.
If the accord is not satisfied, a party may sue on what?
either the original obligation or the accord