Chapter 16 Flashcards
A qualification in a contractual agreement, the occurrence or nonoccurence of which creates, suspends, or terminates the obligations of the parties.
Condition
The termination of a contractual obligation.
Discharge
A condition in a contract that must be met before a party’s promise becomes absolute.
Condition Precedent
A condition in a contract that, if it occurs, operates to terminate a party’s absolute promise to perform.
Condition Subsequent
Conditions that must occur or be performed at the same time - they are mutually dependent. No obligations arise until these conditions are simultaneously performed.
Concurrent Conditions
An unconditional offer to perform an obligation by a person who is ready, willing, and able to do so.
Tender
The failure, without legal excuse, of a promisor to perform the obligations of a contract.
Breach of Contract
An assertion or action by a party indicating that he or she will not perform a contractual obligation.
Anticipatory Repudiation
The substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated.
Novation
A doctrine under which a party to a contract is relieved or his or her duty to perform when performance becomes objectively impossible or totally impracticable.
Impossibility of Performance
A doctrine that may excuse the duty to perform a contract when performance becomes much more difficult or costly due to forces that neither party could control or foresee at the time the contract was formed.
Commercial Impracticability
A court created document under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists due to reasons beyond that party’s control.
Frustration of Purpose
