Chapter 9 - end of contractual relationship Flashcards
principal methods of discharging a contract
performance
breach
agreement b/w parties
frustration
discharge by performance
each party satisfactorily completes its part of the bargain
substantial performance
condition is breached in some minor way and sobject to a claim for the loss caused by the shortfall
tender of performance
one party is ready, willing and able and attempts to perform by performance is refused by other party
person who attempted performance may sue other for damages
when payment is tendered and refused
amount is still owed
wait for creditor to collect at creditors expense
breach of contract
improper or incomplete performance
refusal to perform - may lead to discharge of the contract
conditions
terms essential to substantial performance
if breached, victim relieved of obligations
warranties
minor terms of contract
if breach - performance still req
fundamental breach
breach that goes to the very root of the contract
one party os denied the benefit that was in the contract
breach by refusal to perform (repudiation)
one party indicated to the other an intention to abandon and altogether to refuse performance of the contract
anticipatory breach
refusal occurs before performance is due
victime may choose to accept repudiation and end the contract or insists on performance
results of failure to perform
slide 12
discharge by agreement
contracts can be modified or ended by agreement
bilateral/unilateral discahrge
accord and satisfaction
parties agree to end contract based on some other consdieration
contractual terms
contract can specify conditions under which obligation begin or end
can also end by operation of law (death, insanity, bankruptcy)
conditions precedent (subject to clause)
contract is binding only if a pre-existing condition is met
conditions subsequent
the contract ends when some event or conditions takes place
a force majeure clause
spells out who bears the risk if certain events occur
for catastrophic events
frustration
outside unforeseen event which makes performance impossible and changes the nature of the contract
ends contractual obligations
event must be unanticipated to be frustration
frustration does not occur when
there is shared mistake
when one party is responsible for an act that frustrates a contract
frustration arises in
destruction of the subject matter
cancellation of a crtical event
change of the relevant laws
circumstances not constituting frustration
self induced frustration
increased difficulty/increased cost
effect of frustration
slide 20
damages
court tries to put victim of breach in the position they would be in if contract was properly performed
look forward in time
can be g,s,p
equitable remedies
recission
rectification
specific performance
injunction
accounting
quantum meruit
