Chap. 16 Flashcards
What is complete performance? (Strict performance).
A situation in which a party to a contract renders performance exactly as required by the contract. Complete performance discharges that party’s obligations under the contract.
What does it mean to breach of contract?
A situation that occurs if one or both of the parties do not perform their duties as specified in the contract.
What is tender of performance? (Tender).
An unconditional and absolute party that deviates only slightly from complete performance.
What is substantial performance?
Performance by a contracting party that deviates only slightly from complete performance.
What is minor breach?
A breach that occurs when a party renders substantial performance of his or her contractual duties.
What is anticipatory breach (Anticipatory repudiation)?
A breach that occurs when one contracting party informs the other that he or she will not perform his or her contractual duties when due.
What are monetary damages?
An award of money.
What are compensatory damages?
An award of money intended to compensate a nonbreaching party for the loss of the bargain. Compensatory damages place the nonbreaching party in the same position as if the contract had been fully performed by restoring the “benefit of the bargain.”
What are consequential damages (special damages)?
Foreseeable damages that arise from circumstances outside a contract. To be liable for these damages, the breaching party must know or have reason to know that the breach will cause special damages to the other party.
What are nominal damages?
Damages awarded when the nonbreaching party sues the breaching party even though no financial loss has resulted from the breach. Nominal damages are usually $1 or some other small amount.
What is mitigation of damages?
A nonbreaching party’s legal duty to avoid or reduce damages caused by a breach of contract.
What are liquidated damages?
Damages that parties to a contract agree in advance should be paid if the contract is breached.
What is rescission?
An action to rescind (undo) a contract. Rescission is available if there has been a material breach of contract, fraud, duress, undue influence, or mistake.
What is restitution?
The return of goods or property received from the other party to rescind a contract. If the actual goods or property are not available, a cash equivalent must be made.
What is writ of attachment?
An order of the court that enables a government officer to seize property of the breaching party and sell it at auction to satisfy a judgment.
