Chapter 18 Flashcards
What is a condition?
Occurrence triggers or extinguishes legal obligation.
What are the three types of conditions?
Precedent (creates obligation to perform),Concurrent (simultaneous), Subsequent (terminates obligation to perform.)
What are the different outcomes of a contract?
Complete performance, substantial performance or minor or non-material breach.
After a breach of contract it remains in ________, may not suspend performance until breach ______, damages due for minor breach. Material breach, contract obligations ________ for non-breaching party.
Full force, cured, discharged.
Standard form contract: sales, ________, etc. Boiler plate language: pre-existing language with _______ to fill in.
Construction, blanks.
What is tender of performance?
An unconditional offer to perform.
What are the two basic types of performance?
Complete performance, both parties perform promises exactly. Substantial performance is most of the promises performed.
What is substantial performance?
Party performed in good faith. Intentional failure= material breach. Performance must not vary greatly from performance promised in contract. Minor breach if easily remedied.
Substantial performance: decide ___________ on a case-by-case basis. The parties must continue __________, if minor breach may not withhold performance until remedied.
Substantiality, performing.
Damages are measured by cost of _________ if reasonable under the circumstances. If not reasonable, difference in _____ between rendered and complete performance. If not material breach, then ___________.
Compliance, value, offset amount.
Material breach is when performance is not ___________. If minor breach, duty may or may not be __________. Any breach allows _____, material allows _______.
Substantial, suspended, suit, discharge.
What is discharge by mutual recission?
ACCL for rescission contract. If one party has performed need additional consideration.
What is material alteration?
Innocent party discharged.
What is the effect of bankruptcy?
Prevents creditors from enforcing most of debtors contracts.
What is impossibility of performance?
Supervening events make performance objectively impossible. Only if not foreseeable by any parties.
