Chapter 18 Flashcards
Performance
The fulfillment of a party’s duties arising under a contract
The normal ways of discharging a contractual obligation
Complete Performance
Performing exactly as agreed
Substantial Performance
Partially complete, good enough performance
In order for a performance to be substantial, it must…
- Be performed in good faith
- Not vary greatly from what’s promised in the contract
- Still have the other party’s duty to perform remain absolute
Failure to completely comply w/ the contract results in…
The other party (receiver) being entitled to damages
Discharge
Termination of an obligation once fulfilled
Tender
An unconditional offer to perform
Types of conditions
- Condition Precedent
- Condition Subsequent
- Concurrent conditions
Condition Precedent
A condition that must be met before a promise becomes absolute
Condition Subsequent
Excuses a party’s performance if a future event happens
Concurrent conditions must be performed…
Simultaneously
Conditions can be…
Expressed or Implied
Express conditions are…
Provided for by the parties agreement
Implied conditions are…
Understood to be part of the agreement
Breach of Contract
The failure to perform the obligations of the contract, even substantially
In which the failing party can held liable
Most contracts need to be performed up to…
The satisfaction of a reasonable person, unless said otherwise
Anticipatory Repudiation indicates…
A person won’t perform an obligation that’s obligated at a future time
In the case of anticipatory repudiation, the innocent party…
- Shouldn’t have to wait for the guilty party to perform
- Should have the chance to seek a similar contract elsewhere
If a performance is delayed, does it destroy the performing party’s right to payment?
No, unless the time is specified
In which case the specified time becomes a condition (time is vital/of the essence)
Mutual Recession states…
Any contract can be discharged by agreement of the parties
Mutual recession only works if…
Neither party has performed the contract
Contracts can be automatically discharged if…
- The other party altered a written contract w/o consent
- The statute of limitations restricts the time frame can sue
- Someone is bankrupt, erasing all debts and obligations
- Performance is objectively + physically impossible
