Chapter 18

Question 1

Performance

Answer 1

The fulfillment of a party’s duties arising under a contract
The normal ways of discharging a contractual obligation

Question 2

Complete Performance

Answer 2

Performing exactly as agreed

Question 3

Substantial Performance

Answer 3

Partially complete, good enough performance

Question 4

In order for a performance to be substantial, it must…

Answer 4

1. Be performed in good faith
2. Not vary greatly from what’s promised in the contract
3. Still have the other party’s duty to perform remain absolute

Question 5

Failure to completely comply w/ the contract results in…

Answer 5

The other party (receiver) being entitled to damages

Question 6

Discharge

Answer 6

Termination of an obligation once fulfilled

Question 7

Tender

Answer 7

An unconditional offer to perform

Question 8

Types of conditions

Answer 8

1. Condition Precedent
2. Condition Subsequent
3. Concurrent conditions

Question 9

Condition Precedent

Answer 9

A condition that must be met before a promise becomes absolute

Question 10

Condition Subsequent

Answer 10

Excuses a party’s performance if a future event happens

Question 11

Concurrent conditions must be performed…

Answer 11

Simultaneously

Question 12

Conditions can be…

Answer 12

Expressed or Implied

Question 13

Express conditions are…

Answer 13

Provided for by the parties agreement

Question 14

Implied conditions are…

Answer 14

Understood to be part of the agreement

Question 15

Breach of Contract

Answer 15

The failure to perform the obligations of the contract, even substantially

In which the failing party can held liable

Question 16

Most contracts need to be performed up to…

Answer 16

The satisfaction of a reasonable person, unless said otherwise

Question 17

Anticipatory Repudiation indicates…

Answer 17

A person won’t perform an obligation that’s obligated at a future time

Question 18

In the case of anticipatory repudiation, the innocent party…

Answer 18

1. Shouldn’t have to wait for the guilty party to perform
2. Should have the chance to seek a similar contract elsewhere

Question 19

If a performance is delayed, does it destroy the performing party’s right to payment?

Answer 19

No, unless the time is specified

In which case the specified time becomes a condition (time is vital/of the essence)

Question 20

Mutual Recession states…

Answer 20

Any contract can be discharged by agreement of the parties

Question 21

Mutual recession only works if…

Answer 21

Neither party has performed the contract

Question 22

Contracts can be automatically discharged if…

Answer 22

1. The other party altered a written contract w/o consent
2. The statute of limitations restricts the time frame can sue
3. Someone is bankrupt, erasing all debts and obligations
4. Performance is objectively + physically impossible