Chapter 17

Question 1

Discharge

Answer 1

A party is discharged when she has no more duties under the contract

Question 2

Rescind

Answer 2

To terminate a contract by mutual agreement

Question 3

Condition

Answer 3

An event that must occur before a party becomes obligated under a contract

Question 4

Condition precedent

Answer 4

An event must occur before a duty arises

Question 5

Condition Subsequent

Answer 5

Type of condition must occur after a particular duty arises

Question 6

Concurrent condition

Answer 6

Both parties have a duty to perform simultaneously

Question 7

Strict performance

Answer 7

Requires one party to perform its obligators precisely, with no deviation from the contract terms

Question 8

Substantial performance

Answer 8

Occurs when one party fulfills enough of its contract obligations to warrant payment

Question 9

Personal satisfaction contracts

Answer 9

Permit the promisee to make a subjective evaluations of the promisors performance

Question 10

Time of essence clause

Answer 10

Generally makes contract dates strictly enforceable

Question 11

Material breach

Answer 11

Substantially harms the innocent party and for which it would be hard to compensate without discharging the contract

Question 12

Anticipatory breach

Answer 12

Making it unmistakably clear that it will not honor the contract

Question 13

Statute of limitations

Answer 13

A statutory time limit within which an injured party must file suit

Question 14

Good Faith

Answer 14

IS required in all contracts

Question 15

Frustration of purpose

Answer 15

Frustration of purpose may occur when an unexpected event renders a contract completely useless to one party

Question 16

Commercial impracticability

Answer 16

Some unexpected event has made it extraordinarily difficult and unfair for one party to perform its obligations