Chapter 12

Question 1

Discharge a contract

Answer 1

cancel or end the obligations of a contract; make an agreement or contract inoperative

Question 2

Tender of performance

Answer 2

an attempt by one party to perform according to the terms of the contract

Question 3

Waiver

Answer 3

an agreement not to proceed with the performance of an existing contract

Question 4

Accord and satisfaction

Answer 4

a compromise between contracting parties to substitute a new contractual obligation and release a party from the existing one

Question 5

Novation

Answer 5

the parties to a contract agree to terminate it and substitute a new contract

Question 6

Condition Precedent

Answer 6

a future act or event that must happen before the obligation to perform the promises arises

Question 7

Condition Subsequent

Answer 7

a future event that brings a promisor’s liability to an end if it happens

Question 8

Act of God

Answer 8

the raging of the natural elements

Question 9

Doctrine of frustration

Answer 9

the law excuses a party from performance when unforeseeable circumstances beyond the control of the parties make performance impossible, pointless, or radically different from that contemplated by the parties

Question 10

Self-induced frustration

Answer 10

a party willfully disables itself from performing a contract in order to claim that the contract has been frustrated

Question 11

let the loss fall where it lies

Answer 11

the court will enforce the contract up to the moment of discharge—obligations due before the frustrating event remain; obligations arising after the frustrating event are discharged

Question 12

Statute Barred

Answer 12

an action that may no longer be brought before a court because the party wishing to sue has delayed beyond the limitation period in the statute