Chapter 8 Flashcards
Rescission
The cancellation of a contract and restoration of the parties to
the same position they held before the contract was entered into.
Damages
The indemnity recoverable by a person who has sustained an
injury, either in his or her person, property, or relative rights, through the
act or default of another. Loss sustained or harm done to a person or
property
Punitive Damages
Damages simply for the purpose of punishment.
Equitable Remedies
Remedies for the purpose of ‘fairness and justice’
Specific Performance
An action to compel performance of an agreement,
ex: sale of land as an alternative to damages or rescission.
Anticipatory Repudiation
When a breach occurs before performance is
due as a result of one party’s unequivocal intention not to substantially
perform.
Statute of Frauds
A state law requiring certain contracts to be in writing
and signed before they will be enforceable at law.
Ex: Contracts for the sale of real property, contracts not be performed
within one year.
Validity
Having mutual assent and consideration.
Enforceability
The ability to sue for the enforcement of the contract.
Assignment
A transfer of benefits and obligations within a contract to a 3rd
party who is not originally a party to the contract.
Assignor
One who assigns or transfer property
Assignees
Those whom property or interests therein shall have been
transferred.
Privity
Mutual relationship to the same rights of property, contractual
relationship.
Privity of Contract
The relationship which exists between the persons who
are parties to a contract.
Privity of Estate
A mutual or successive right or interest in the same real
property
Novation
The substitution or exchange or a new obligation or contract for
an old one by the mutual agreement of the parties.
Interpleader
An equitable proceeding brought by a third party acting in
the capacity of a stake holder wherein there are rival claimants to the same
money and/or property requesting the court to determine such properties
disposition.
The legally justified cancellation and/or revocation of a contract and the return of the parties back to their original position is known as…?
Recission
There are two types of rescission, mutual and unilateral…?
True
A mutual rescission usually occurs when which of the following happens…?
There is a mistake in the contract
The indemnity recoverable by a person who has sustained an injury, either in his or her person, property, or relative rights, through the act or default of another is referred to as…?
Damages
Damages simply for the purpose of punishment are known as…?
Punitive Damages
Remedies for the purpose of ‘fairness and justice’ are referred to as…?
Equitable Remedies
An action to compel performance of an agreement is known as…?
Specific Performance
