Chapter 9 Termination and enforcement of Contracts

Question 1

termination- 4 ways

Answer 1

discharging of contractual obligations

1. performance - both parties fulfill obligations
2. agreement- both parties agree to end it
3. frustration, important and unforeseen event occurs after the formation of a contract.
4. breach- release innocent party

Question 2

Termination of contract by performance

Answer 2

performed terms as required under contract,
condition: major terms of contract if there is a breach in condition the contract ends and victim doesn’t have to perform obligations
warranties- minor term, breach = continue contract but may seek damages

Question 3

substantial performance

Answer 3

substantially all obligations are fulfilled but a condition is breached in a minor way, the victim may seek compensation

Question 4

performance of payment

Answer 4

must be cash unless otherwise specified, cr cards are okay,

Question 5

termination of contract by agreement

Answer 5

new contract that ends the current one, all 5 elements of a contract must still be present– there must be consensus

Question 6

termination of contract by frustration

Answer 6

outside unforeseen event/change that is out of control/ impossible/ now illegal such as illness, new law, natural disaster

• neither side liable
• occur after contract formed
• difficult to establish in court

Question 7

termination of contract by breach

Answer 7

incomplete or improper performance of contract or repudiation– breach by refusal to perform

Question 8

enforcement of contract

Answer 8

plaintiff must demonstrate

• privity of contract
• breach of contract
• entitlement to remedy

Question 9

remedies

Answer 9

final step in breach of contract

damages: monetary compensation for breach

Question 10

equitable remedies (5)

Answer 10

1. specific performance, do what contract obligated u to do
2. injunction- stop doing something
3. accounting - pay profits to victim, or disclose financial records/ dealings
4. quantum merut- pay reasonable price for services tendered (work already done)
5. Rescission - return parties of contract to their original positions- before contract was signed, there usually is dispute over formation of contract, improper on incomplete performance,