Chapter 17

Question 1

What is an expressed condition

Answer 1

A condition explicitly set forth in the language of the contract

Question 2

What are implied in fact conditions

Answer 2

Something understood by the parties to be apart of the agreement though not express (contradicts PER but can exist)

Question 3

Implied in-law conditions

Answer 3

Contingency not in the contract but imposed by law could discharge

Question 4

What are events that would discharge a contract

Answer 4

Performance by parties
Material breach by parties
Mutual Agreement
Operation of law

Question 5

What are concurrent conditions

Answer 5

Conditions that are to take place at a set time

Question 6

What are conditions precedent

Answer 6

An event that must occur before performance is due

Question 7

What are conditions subsequent

Answer 7

An event that terminates a duty of performance

Question 8

What is Tender

Answer 8

An offer by one party to perform a duty. Refusal of tender may be grounds for discharge

Question 9

What is a breach of contract

Answer 9

A wrongful failure to perform that terms of contract. Gives right to damages by injured party and discharges contract

Question 10

What is a Material Breach

Answer 10

Non performance that significantly impairs the injured party’s rights under contract

Question 11

What is substantial performance

Answer 11

Performance that is incomplete but does not defeat the purpose of the contract

Question 12

What is Anticipatory Repudiation

Answer 12

An inability or refusal to perform before performance is due is treated as a breach and allows injured party to sue immediately

Question 13

What is unauthorized material change of written contract

Answer 13

Fraudulent alteration discharges entire contract.

Question 14

What is accord and satisfaction

Answer 14

When a substituted duty (accord) and the discharge of prior obligation by performance of new duty (satisfaction)

Question 15

What is the difference between a substituted contract and accord and satisfaction

Answer 15

The intention of of the parties. Resolution for disputed amounts is an accord.

Question 16

What are the elements of impossibility for contracts

Answer 16

Destruction of Subject Matter
Objective Impossibility
Subsequent Illegality
Frustration of purpose
Commercial impracticality

Question 17

What is objective and subjective possibility

Answer 17

Objective is when no promisor is able to perform - generally discharges. Subjective is when the promisor but not all promisors can’t perform - does not discharge

Question 18

What is frustration of purpose

Answer 18

when the purpose of a contract cannot be fulfilled due to a subsequent event (discharges)