Chapter 17- Performance, Breach, Discharge

Question 0

Subjective Satisfaction Contracts

Answer 0

Fall within the realm of personal taste, sensibility, opinion, and judgment.

• Employment Contract (w satisfaction clause) considered subjective satisfaction if the employer is with honesty and in good faith satisfied
• art, music, design, must be honest and in good faith.

Question 1

Satisfaction Contract

Answer 1

A type of conditional contract.

• Contracts are up to someone satisfaction if satisfaction occurs, and something will be provided.
• May be objective or subjective
• satisfaction contracts are valid
• not illusory b/c they are not ‘‘ill pay if i want”

Question 2

Objective satisfaction contracts

Answer 2

Mechanical utility or standardized goods.
Judged by the standard: what a reasonable person be satisfied. If a reasonable person would not be satisfied in the performances excuse without liability.

Question 3

Breach

Answer 3

A wrongful failure to perform under a contract.

-if a breach occurs then The innocent party has rights to the damages.

Question 4

The Common Law Rule: Substantial Performance

Answer 4

When a party substantially performs under a contract it is not a material breach it is a minor breach.
/It does not excuse the innocent party from performance but it does entitle them to damages

Question 5

Common Law Rule: Material Breach

Answer 5

• material breach is a substantial major breach. The innocent party is excused from performance and is entitled to damages.

Question 6

UCC Rule: Perfect Tender Rule

Answer 6

Any imperfection in the delivery of the sale of goods is a breach. Any breach is a material breach, excusing the innocent party from performance and entitling them to damages.

Question 7

Anticipatory repudiation

Answer 7

An announcement made by a party that they will breach/not perform in advance. You can either wait to see if the party will actually breach or you may sue immediately.