Chapter 17-Performance, Breach, and Discharge

Question 1

What does it mean to “discharge” a contract?

Answer 1

to terminate the rights of the contract and contractual duties

Question 2

What are 4 kinds of discharge?

Answer 2

1. Performance
2. Breach
3. Agreement of the parties
4. operation of law

Question 3

What is a condition?

Answer 3

an event whose happening or nonhappening affects a duty of performance under a contract.

Question 4

What is the difference between a breach/nonperformance of a contract and the failure of a contract?

Answer 4

breach/nonperformance: party that breaches incurs liability

failure: prevents other party from acquiring a right- but doesn’t incur any liability

Question 5

What must a condition contain/do to be expressed?

Answer 5

explicitly set forth in language. No particular form of words is necessary to creat an express condition. They must be fully and literally performed before the conditional duty to perform arises.

Question 6

What are the 6 types of conditions?

Answer 6

1. express condition
2. implied in fact conditions
3. implied in law
4. concurrent
5. conditions precedent
6. conditions subsequent

Question 7

What is the difference between implied-in-fact and implied-in-law conditions?

Answer 7

implied-in-fact: necessarily inferred from terms of contract. Parties understand them to be part of the agreement
Implied-in-law: (constructive) imposed by law to accomplish a just and fair result

Question 8

What are the 3 types of satisfaction that meet the “satisfaction of a party” condition?

Answer 8

1. subjective
2. objective
3. satisfaction of a third party

Question 9

What conditions are based on time?

Answer 9

concurrent, precedent, and subsequent

Question 10

What is the most common type of discharge?

Answer 10

Performance

Question 11

What is tender?

Answer 11

offer by 1 party- who is ready, willing, and able to perform to the other party to perform their obligations according to the terms of contract

Question 12

What does it mean to breach a contract?

Answer 12

unexcused failure of a party to perform their promise

-one party materially breaches contract-discharges duty of performance of other party

Question 13

What are some examples of a material breach?

Answer 13

JIT/time is of the essence
Quantity 
Essential
perfect tender rule
prevention of performance
material alteration of written contract
anticipatory repudiation