Chapter Ten - Performance: Required or Excused

Question 1

Discharge

Answer 1

Release

Question 2

Qui Tam

Answer 2

Lawsuit in which a whistleblower can obtain reward for exposing misconduct involving government contracts

Question 3

Recision

Answer 3

A mutual agreement to cancel

Question 4

Novation

Answer 4

New contract involving new parties; cancels earlier contract

Question 5

Insolvency

Answer 5

Unable to pay debts

Question 6

Bankruptcy

Answer 6

Federal system of laws and courts for resolution of debts that exceed the debtor’s assets or that the debtor is unable to pay when due

Question 7

Liquidation

Answer 7

To convert assets to cash, usually to pay debts in dissolution of a business

Question 8

Straight Bankruptcy

Answer 8

Generally involves liquidation of assets

Question 9

Reorganization

Answer 9

Bankruptcy in which debtor continues in operation

Question 10

Tender Performance

Answer 10

Party’s indication that he is ready, willing, and able to perform

Question 11

Objective Impossibility

Answer 11

Impossibility in an objective sense; not personal

Question 12

Commercial Impracticability

Answer 12

An event, not anticipated by either party; that makes performance extraordinarily difficult and unfair for one party

Question 13

Frustration of Purpose

Answer 13

Contract has no remaining value for party because of an unanticipated event

Question 14

Force Majeure

Answer 14

Contract provision excusing performance for an event such as “act of God,” fire, labor dispute, accident, or transportation difficulty

Question 15

Sale-or-Return

Answer 15

Seller delivers goods to buyer who resells or returns them to seller; buyer takes title until sale or return

Question 16

Consignment

Answer 16

An arrangement under which goods are placed for sale but title does not transfer to the seller

Question 17

Title

Answer 17

Ownership

Question 18

Identified

Answer 18

Goods designated as the particular goods being sold

Question 19

Fungible

Answer 19

Interchangeable

Question 20

Perfect Performance

Answer 20

No deviations from contract; also called strict performanc

Question 21

Strict Performance

Answer 21

No deviations from contract expectations; also called perfect performance

Question 22

Substantial Performance

Answer 22

Only minor deviations from contact specification; acceptable in most service contracts

Question 23

Major or Material Breach

Answer 23

Substantial breach of contract, usually excusing other party from further performance

Question 24

Time of the Essence

Answer 24

Any performance delay constitutes breach

Question 25

Satisfaction Clause

Answer 25

Contract provision requiring performance to the satisfaction of a specified individual

Question 26

Perfect Tender Rule

Answer 26

Buyer has reasonable time to reject goods that fail, in any respect, to conform to the contract

Question 27

Trade Usage

Answer 27

Industry standards for permissible deviations from specifications

Question 28

Course of Dealing

Answer 28

What has been done by the parties in the past

Question 29

Cure

Answer 29

Seller delivers conforming goods before contract deadline, after buyer rejects nonconforming goods

Question 30

Tender

Answer 30

To make available

Question 31

Bailee

Answer 31

Person, other than owner, who is in possession of goods under an arrangement called a bailment

Question 32

Repudiation

Answer 32

A party’s words or actions indicating intention not to perform the contract

Question 33

Anticipatory Breach

Answer 33

Belief that other party will not perform

Question 34

Assurance

Answer 34

A pledge or guarantee that gives confidence or security

Question 35

Insecure Party

Answer 35

Party has good-faith belief that performance by other party is unlikely

Question 36

Mitigate

Answer 36

Limit or reduce damages

Question 37

Cover

Answer 37

Buyer obtains substitute goods