Chapter 9 - end of contractual relationship

Question 1

principal methods of discharging a contract

Answer 1

performance
breach
agreement b/w parties
frustration

Question 2

discharge by performance

Answer 2

each party satisfactorily completes its part of the bargain

Question 3

substantial performance

Answer 3

condition is breached in some minor way and sobject to a claim for the loss caused by the shortfall

Question 4

tender of performance

Answer 4

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

Question 5

when payment is tendered and refused

Answer 5

amount is still owed
wait for creditor to collect at creditors expense

Question 6

breach of contract

Answer 6

improper or incomplete performance
refusal to perform - may lead to discharge of the contract

Question 7

conditions

Answer 7

terms essential to substantial performance

if breached, victim relieved of obligations

Question 8

warranties

Answer 8

minor terms of contract

if breach - performance still req

Question 9

fundamental breach

Answer 9

breach that goes to the very root of the contract

one party os denied the benefit that was in the contract

Question 10

breach by refusal to perform (repudiation)

Answer 10

one party indicated to the other an intention to abandon and altogether to refuse performance of the contract

Question 11

anticipatory breach

Answer 11

refusal occurs before performance is due

victime may choose to accept repudiation and end the contract or insists on performance

Question 12

results of failure to perform

Answer 12

slide 12

Question 13

discharge by agreement

Answer 13

contracts can be modified or ended by agreement

bilateral/unilateral discahrge

Question 14

accord and satisfaction

Answer 14

parties agree to end contract based on some other consdieration

Question 15

contractual terms

Answer 15

contract can specify conditions under which obligation begin or end

can also end by operation of law (death, insanity, bankruptcy)

Question 16

conditions precedent (subject to clause)

Answer 16

contract is binding only if a pre-existing condition is met

Question 17

conditions subsequent

Answer 17

the contract ends when some event or conditions takes place

Question 18

a force majeure clause

Answer 18

spells out who bears the risk if certain events occur

for catastrophic events

Question 19

frustration

Answer 19

outside unforeseen event which makes performance impossible and changes the nature of the contract

ends contractual obligations

event must be unanticipated to be frustration

Question 20

frustration does not occur when

Answer 20

there is shared mistake
when one party is responsible for an act that frustrates a contract

Question 21

frustration arises in

Answer 21

destruction of the subject matter
cancellation of a crtical event
change of the relevant laws

Question 22

circumstances not constituting frustration

Answer 22

self induced frustration
increased difficulty/increased cost

Question 23

effect of frustration

Answer 23

slide 20

Question 24

damages

Answer 24

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

Question 25

equitable remedies

Answer 25

recission
rectification
specific performance
injunction
accounting
quantum meruit