Chapter 9

Question 1

Privity Of Contract

Answer 1

only the parties to a contract owe any duties and enjoy any rights arising from contract

Question 2

Exceptions to Privity of Contract:

Answer 2

Assignment-TRANSFERS

Delegation-FREES

Question 3

Liabilities of Parties

Answer 3

unconditionally assigned? the rights of the assignor are extinguished.
-assignee acquires no greater rights than held by assignor

Question 4

Delegation of Duty-What can’t you delegate?

Answer 4

• Performance depends on the skill of the obligor
• Special trust has been place in the obligor
• Performance by a third party will alter the expectation of the duty contract
• Contract expressly prohibits delegation

Question 5

Exceptions:

Answer 5

Third Party Beneficiary-the law distinguishes between intended and incidental third party beneficiaries.

Question 6

Intended Beneficiary

Answer 6

A third party for whose benefit a contract is formed.

Ex.Life insurance

Question 7

Incidental Beneficiary

Answer 7

Third party who benefits from the performance of a contract, but whose benefit was not the reason the contract was formed.
Ex.include construction contracts

Question 8

Tender

Answer 8

unconditional offer to perform an obligation by a person who is ready, willing, and able to do so.

Question 9

substantial performance

Answer 9

must not vary greatly from that promised in the contract, and it must create substantially the same benefits as those promised in the contract

Question 10

Breach of Contract

Answer 10

1 party does not perform

Question 11

Anticipatory Repudiation

Answer 11

tells you BEFORE it’s due

Question 12

Rescission

Answer 12

we dont want to be in a contract.

CANCEL the contract.

Question 13

Novation

Answer 13

old contract for new contract

Question 14

accord and satisfaction

Answer 14

an agreement between the parties to accept different performance than originally promised.

Question 15

Compensatory Damages

Answer 15

Actual

Question 16

Consequential Damages

Answer 16

foreseeable consequential

Question 17

Punitive Damages

Answer 17

designed to punish a wrongdoer

Question 18

mitigation of damages

Answer 18

you have to make your damages as small as possible

Question 19

liquidated damges

Answer 19

value of breach before contract

Question 20

equitable remedies

Answer 20

recission

restitution

Question 21

recission

Answer 21

canceling a contract and returning the parties to their pre contract position.
Recssion requires restituion.

Question 22

Restitution

Answer 22

returning goods, property or money previously transferred in order to restore the non breaching party.

Question 23

specific performance

Answer 23

requiring the breaching party to perform exactly as required (only granted only when money damages would be an inadequate remedy and the subject matter of the contract is unique)

Question 24

reformation

Answer 24

a remedy alloing the contract to be re written to reflect the true intent of parties