Chapter 9

Question 1

Through performance

Answer 1

when both parties fulfill their contractual obligations to each other

Question 2

through agreement

Answer 2

both parties could agree to simply walk away from their agreement, or one party could pay a sum to the other side by way of settlement in exchange for agreeing to end the contract

Question 3

through frustration

Answer 3

after the formation of a contract, an important, unforeseen event occurs – such as the destruction of the subject matter of the contract or the death/incapacity of one of the contracting parties

Question 4

through breach

Answer 4

when it is particularly serious, can release the innocent party from having to continue with the contract

Question 5

vicarious performance

Answer 5

performance of contractual obligations through others

Question 6

Novation

Answer 6

the substitution of parties in a contract or the replacement of one contract with another

Question 7

Assignment

Answer 7

the transfer of a right by an assignor to an assignee

Question 8

Frustration

Answer 8

termination of a contract upon the occurrence of an unforeseen catastrophic event which makes contractual performance impossible or prevents the contract from being performed in a manner at all similar to what the parties envisioned when they entered the contract

Question 9

Balance of probabilities

Answer 9

proof that there is better than 50% chance that the circumstances of the contract are as the plaintiff contends and furthermore that these circumstances entitle it to receive what is claimed

Question 10

Anticipatory breach

Answer 10

a breach that occurs before the date of the performance

Question 11

damages

Answer 11

monetary compensation for breach of contract or other actionable wrong

Question 12

expectation damages

Answer 12

damages that provide the plaintiff with the monetary equivalent of contractual performance

Question 13

Duty to mitigate

Answer 13

they must take reasonable steps to minimize losses that might arise from the breach. Any reasonable costs associated with the mitigation are recoverable from the party in breach.

Question 14

Rescission

Answer 14

restore the parties to the situation they were in before the contract was formed, rather than use compensation to put the innocent party in the position it would have been in had the contract been completed

Question 15

Unjust enrichment

Answer 15

occurs when one party has undeservedly or unjustly secured a benefit at the other party’s expense

Question 16

restitutionary quantum meriut

Answer 16

an amount that is reasonable given the benefit the plaintiff has conferred