Chapter 9

Question 1

Acceleration clause

Answer 1

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

Question 2

Accord

Answer 2

Agreement by both parties on some change in the contract

Question 3

Accord and satisfaction

Answer 3

Agreement to end a contract with extra consideration being supplied by the party benefitting from the discharge

Question 4

Accounting

Answer 4

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

Question 5

Anticipatory breach

Answer 5

Repudiation of a contract before performance is due

Question 6

Bilateral discharge

Answer 6

Agreement by both sides to terminate the contract or disregard a contract term

Question 7

Breach of contract

Answer 7

Failure of a party to properly perform its contractual obligations

Question 8

Clean hands

Answer 8

Absence of wrongdoing on the part of a person seeking an equitable remedy

Question 9

Conditions

Answer 9

Major terms of a contract

Question 10

Condition precedent

Answer 10

A term marking performance of a contract conditional on future events

Question 11

Condition subsequent

Answer 11

An event that if it occurs will terminate a contract

Question 12

Deposit

Answer 12

Money prepaid with the provision that the funds are to be forfeited in the event of a breach of contact

Question 13

Discharge by agreement

Answer 13

Agreement by the parties that a contract is ended

Question 14

Down payment

Answer 14

A portion of the purchase price paid to the seller at the time of sale

Question 15

Exemption clause

Answer 15

An attempt to limit liability under an agreement

Question 16

Force majeure clause

Answer 16

A contract term anticipating some catastrophic event usually exempting liability when such an event interferes with performance of the contract

Question 17

Frustration

Answer 17

Interference with a contract by some outside, unforeseen event that makes performance impossible or essentially different in nature

Question 18

Fundamental breach

Answer 18

A breach of a fundamental aspect of the contract

Question 19

Injunction

Answer 19

A court order to stop some offensive conduct or to do something to remediate wrongful conduct or to not do something in the future

Question 20

Interlocutory injunction

Answer 20

A court order issued before a trial to stop an ongoing injury

Question 21

Laches

Answer 21

Undue delay; neglect or omission to assert a right or claim

Question 22

Liquidated damages

Answer 22

A remedy requiring the party responsible for a breach to pay an amount specified in the contract

Question 23

Mitigate

Answer 23

To lessen a loss

Question 24

Performance

Answer 24

Completion by a party of its obligations under contract

Question 25

Satisfaction

Answer 25

A substitute in consideration, accepted by both parties

Question 26

Self-induced frustration

Answer 26

Frustration arising when one of the parties to a contract causes or fails to prevent a frustrating event; treated as a breach in contract

Question 27

Subject-to-clause

Answer 27

A term making performance of a contract conditional on future events; also known as a condition precedent

Question 28

Substantial performance

Answer 28

Performance of a contract in all but a minor aspect of it

Question 29

Tender of performance

Answer 29

An unsuccessful attempt by one of the parties to a contract to perform its obligations under the contract

Question 30

Warranties

Answer 30

Minor terms of a contract