Chapter 9 Flashcards
Acceleration clause
A contractual term that comes into effect when there is a failure to make an instalment payment and which requires that the entire debt plus expenses be paid
Accord
Agreement by both parties on some change in the contract
Accord and satisfaction
Agreement to end a contract with extra consideration being supplied by the party benefitting from the discharge
Accounting
A court ordered determination of the injuries suffered; the agent must pay over money or property collected on behalf of the principal; a court order that any profits from wrongdoing be paid over to the victim
Anticipatory breach
Repudiation of a contract before performance is due
Bilateral discharge
Agreement by both sides to terminate the contract or disregard a contract term
Breach of contract
Failure of a party to properly perform its contractual obligations
Clean hands
Absence of wrongdoing on the part of a person seeking an equitable remedy
Conditions
Major terms of a contract
Condition precedent
A term marking performance of a contract conditional on future events
Condition subsequent
An event that if it occurs will terminate a contract
Deposit
Money prepaid with the provision that the funds are to be forfeited in the event of a breach of contact
Discharge by agreement
Agreement by the parties that a contract is ended
Down payment
A portion of the purchase price paid to the seller at the time of sale
Exemption clause
An attempt to limit liability under an agreement
Force majeure clause
A contract term anticipating some catastrophic event usually exempting liability when such an event interferes with performance of the contract
Frustration
Interference with a contract by some outside, unforeseen event that makes performance impossible or essentially different in nature
Fundamental breach
A breach of a fundamental aspect of the contract
Injunction
A court order to stop some offensive conduct or to do something to remediate wrongful conduct or to not do something in the future
Interlocutory injunction
A court order issued before a trial to stop an ongoing injury
Laches
Undue delay; neglect or omission to assert a right or claim
Liquidated damages
A remedy requiring the party responsible for a breach to pay an amount specified in the contract
Mitigate
To lessen a loss
Performance
Completion by a party of its obligations under contract
Satisfaction
A substitute in consideration, accepted by both parties
Self-induced frustration
Frustration arising when one of the parties to a contract causes or fails to prevent a frustrating event; treated as a breach in contract
Subject-to-clause
A term making performance of a contract conditional on future events; also known as a condition precedent
Substantial performance
Performance of a contract in all but a minor aspect of it
Tender of performance
An unsuccessful attempt by one of the parties to a contract to perform its obligations under the contract
Warranties
Minor terms of a contract
