Chapter 13 Flashcards
A mistake of fact in a contract made by one party in the contract
unilateral mistake
A mistake of fact in a contract made by both parties
bilateral mistake
When a party takes specific action to conceal a fact that is material to the contract.
Misrepresentation by conduct
Guilty knowledge that signifies there was an intent to decieve
scienter
Arises from relationships in which one party can greatly influence another party, thus overcoming that party’s free will.
undue influence
The use of threats to force someone into a contract contitues
duress
Legal term for terminating a contract
discharge
THe most common way to discharge or “fullfill” a contract
performance
A qualification in a contract based on possible future event.
Condition
A condition that must be fullfilled before a party’s performance can be required is called
a condition precedent
An unconditional offer to perform by a person who is ready, willing, and able to do so.
Tender
When a party in good faith performs subtatnially all ot the terms of the contract. must not vary greatly and give substantially the same results
Substantial performance
The nonperformance of a contractual duty
breach of contract
When one party of a contract refuses to obligate their obligations prior to any member of the contracts duty to perform begins
anticipatory repudiation
When both parties agree to substitute a third party for one of the original parties
novation
When performance is impossible in an objective sense
impossibility of performance
When courts excuse performance on basis the it become much more expensive or difficult than either party originally believed
commercial impracticability
The relinquishment of legal right is called
Waiver
Difference between damages in tort cases vs contract law
Tort awards damages for harm, whereas contracts compensate for loss of bargain. Damages put people in the place they would have been if the contract would have been performed.
foreseeable damages that result from a party’s breach of contract are called
consequential damages
a provision in a contract specifying that a certain dollar amount is to be paid in the event of future default or breach
liquidation damages
specifies a certain amount to be paid in teh event of a default or breach of contract
penalty
To recind a contract, both parties make this by returning goods, property, or funds
restitution
