Chapter 9 Contractual Performance & Breach Flashcards
True or False: All contracts, to be valid and enforceable, must be in writing and signed by the parties to the agreement.
True
What does the Parol Evidence Rule prohibit?
Testimony about oral negotiations that result in a written contract
This rule applies to oral agreements made at the time of or prior to the written contract.
Define ‘Duty of performance’.
Performance required by the other party as promised in the contract.
What does ‘discharged’ mean in the context of contract performance?
Occurs when the party is relieved from all further responsibility of performance.
What is a condition precedent?
If something must take place in the future, before a party has a duty to perform.
What is a condition subsequent?
Excuses contractual performance if some future event takes place.
What are express conditions?
Explicitly mentioned in the contract governing performance.
What are implied conditions?
Not explicitly mentioned but can be read into the parties’ obligations to perform.
What is ‘tender performance’?
Offer to perform.
What does ‘substantial performance’ imply?
Work done is sufficient to avoid the claim of a breach.
What is the benefit of divisibility of performance?
Views the duty to perform as a series of smaller contracts, reducing disputes.
What is ‘force majeure’?
Excuses or delays a party’s obligation to perform due to extreme events outside control.
Impossibility of performance’ excuses
A party’s nonperformance when the subject matter of the contract is destroyed.
What is commercial impracticability?
Permits a party of a sale-of-goods contract to receive discharge from performance.
What is a waiver in contract law?
Occurs when a party intentionally relinquishes a right to enforce the contract.
