Chapter 18 Preformance And Discharge In Traditional And E Contracts

Question 1

A condition that must be fulfilled before a party’s performance can be required is called A

Answer 1

Condition precedent

Question 2

When a condition operates to terminate a party’s absolute promise to preform

Answer 2

Condition subsequent

Question 3

If the condition occurs the party’s duty to preform is discharged

Answer 3

Condition subsequent.

Question 4

In general condition —— are common and condition —- are rare

Answer 4

Precedents

Subsequents

Question 5

The restatement of contracts does not use the terms condition subsequent and condition precedent, rather it

Answer 5

Refers to both as conditions

Question 6

When each party’s performance is conditions on the other party’s performance or tender of performance

These conditions exist when the contract calls for party’s to preform their respective duties simultaneously

Answer 6

Concurrent conditions

Question 7

Express conditions are provided by the parties agreement

No particular words are necessary, but are normally prefaced with the words

Answer 7

If, provided, after, when

Question 8

Implied conditions are understood to be part of a contract but are not found in express language. Courts find implied terms….

Answer 8

From the purpose of the contract, or the intent of the parties. Conditions are often implied when they are nesisary for performance of the contract

Question 9

An unconditional offer to preform by a person who is ready willing and able to do so

Answer 9

Tender

Question 10

Once —–•——–|

Answer 10

Performance has been tendered

The tender

Question 11

When a party performs exactly as agreed they have performed “ perfectly” it is said to be

Answer 11

Complete

Complete performance

Question 12

If party’s to a contract did not expressly make the specifications a condition, however, and the builder fails to meet the specifications

Performance is

Answer 12

Not complete

doctrine of substantial performance

Question 13

A party who, in good faith performs substantially all of the terms of a contract can enforce the contract against the other party under the doctrine of…

Answer 13

Substantial performance

Question 14

Basic requirements for substantial performance

Answer 14

1. Party must have performed in good faith
2. The performance must not vary greatly from performance promised in the contract.
3. Performance must creat substantially the same benefits as those promised in the contract

Question 15

Effect of substantial performance on duty to preform

If the performance is substantial the other party’s duty to perform….

Answer 15

Remains absolute

Except that they can sue for damages due to minor deviations

Question 16

Measure of damages is

Answer 16

The cost to bring the contract into compliance with its terms

If* that cost is reasonable under the circumstances

Question 17

If the cost of bringing a contract to its terms is unreasonable then the measure of damages is —-

Answer 17

The difference in value between the performance that was rendered and the performance that would have been rendered if the contract had been performed completely

Question 18

When the subject matter is personal, the obligation is conditional, and performance must—-

Answer 18

Actually satisfy the party specified in the contract.

Portraits
Works of art
Tailoring

Question 19

Most other contracts ( with the exeption of personal subject matter) need to be preformed only to the satisfaction of a reasonable person

Unless*—-

Answer 19

They expressly state otherwise

Question 20

The non-performance of a contractual duty is

Answer 20

Breach of contract

Question 21

When there is ——— the no breaching party is excused from the performance of contractual duties

Answer 21

Material breach

Question 22

If the breach is minor, not material, the nonbreaching party’s duty to preform is

Answer 22

Somtimes* suspended until the breach has been remedied

Question 23

Any breach entitles the Bon breaching party to ——-. But only a ——- discharges the nonbreaching party from the contract

Answer 23

Sue for damages

Material breach

Question 24

Anticipatory repudiation

Answer 24

One party refuses to Cary out his or her contractual obligations before either party has a duty to preform

Question 25

Repudiation is what kind of breach?

Answer 25

Material breach

And the nonbreaching party is permitted to bring an action for damages immediately

Question 26

Until the nonbreaching party treats an early repudiation as a breach the repudiating party can

Answer 26

Can retract his or her repudiation by proper notice and restore the parties to their original obligations

Question 27

Anticipatory repudiation often occurs when performance of the contract would be

Answer 27

Extremely unfavorable to one of the party’s due to a sharp fluctuation in market prices

Question 28

If no time for performance is stated in the contract—–

Answer 28

A reasonable time is implied

Question 29

It what situation would a performing party’s right to payment be destroyed?

Time

Answer 29

if time is expressly stated to be vital or “ of the essence”

A party may also have to complain to make sure the breach of time provision is not waived

Question 30

Any contract can be discharged by

Answer 30

Agreement of the parties

Question 31

Discharge by mutual rescission Involves

Answer 31

The parties make another agreement that satisfies the legal requirements for a contract

Offer, acceptance, and consideration

Question 32

In

Mutual rescission what will constitute consideration for the second contract?

Answer 32

Their promises not to perform the acts stipulated in the original contract

Question 33

Discharge by novation occurs when

Answer 33

Both parties of the contract agree to substitute a third party for one of the original party’s

Question 34

The requirements of a novation are as follows

1.
2.
3.
4.

Answer 34

1. A previous valid obligation
2. An agreement by all parties to a new contract
3. The extinguishing of the old obligation (discharge of the prior party)
4. A new contract that is valid

Question 35

Discharge by settlement involves

Answer 35

The agreement with be substituted as a new contract and will either be expressly or impliedly revoking and discharging the obligations under the poor contract

Question 36

Discharge by accord and satisfaction.

Answer 36

Parts agree to accept a performance that is different from the performance originally promised

Question 37

Three types of conditions that can be present in contracts

Answer 37

Condition precedent
Concurrent conditions
Subsequent conditions