Conditions and Promises

Question 1

What is the Effect of Non-Occurrence of a Condition Precedent or Concurrent Condition?

Answer 1

performance of a duty under a contract is not due unless all conditions precedent to the duty to perform have occurred or their non-occurrence is excused.

non-occurrence of a condition is not a breach by a party unless the party promised the condition would occur. “Promissory condition”

Question 2

Constructive Condition Precedent BLL:

Answer 2

Party who performs second, something must happen first. Substantial performance by the first performance must occur. Bilateral contract implied n law.

Question 3

Severed Contracts:

Answer 3

If there are multiple promises on each side with corresponding consideration, those multiple promises are considered divisible or severable.

Question 4

Order of performance:

Answer 4

1. agreed by parties
2. If no agreement, then parties performance is due simultaneously if they can
3. If not, then the party who performance takes the longest is performed first.

Question 5

Interpret Conditions of Satisfaction BLL:

Answer 5

It is expressed. Always going to be subjective to the parties’ or third party’s operative fitness. It will be objective when the party who has to be satisfied is a party to the contract, not 3rd party, and if it includes a taste or fancy.

Question 6

Factors determining whether non-performance material:

Answer 6

Whether there has been substantial performance (or the lack of a material non-performance):
whether the performance meets the contract’s essential purpose.
1. extent to which the injured party will be deprived of the benefit
2. extent to which the injured party can be adequately compensated for the breach
3. extent to which the party failing to perform would suffer a forfeiture
4. likelihood the party failing to perform will cure the breach
5. extent to which the non-performance involved a lack of good faith and fair dealing

Question 7

UCC Perfect Tender Rule:

Answer 7

In a contract for the sale of goods, a buyer, acting in good faith, has the privilege to reject goods under a sale of goods contract (other than an installment contract) if the goods or the tender of delivery fail in any respect to conform to the contract, and also has the power to cancel the contract if the seller cannot or does not exercise his or her power to cure.

Question 8

When are goods accepted?

Answer 8

1. after a reasonable opportunity to inspect buyer signifies that the goods are conforming or that the buyer will take them in spite of any nonconformity
   (2) the buyer fails to reject them within a reasonable time after their delivery conform to the contract, buyer is precluded from relying
   (3) buyer does any act inconsistent with the seller’s ownership.

Question 9

buyer’s acceptance of goods that the buyer knows are non-conforming can only be revoked :

Answer 9

1. non-conformity substantially impairs the value of the goods
2. acceptance was on the reasonable assumption that the non-conformity would be seasonably cured, and it is not so cured.

Question 10

buyer’s acceptance of goods that the buyer did not know were non-conforming can only be revoked:

Answer 10

1. non-conformity substantially impairs the value of the goods
2. buyer’s acceptance was reasonably induced either by the difficulty of discovery of the non-conformity before acceptance or the seller’s assurances that the goods conformed to the contract

Question 11

Impracticability Condition BLL:

Answer 11

non-occurrence of a condition is excused if:

1. its occurrence is impracticable
2. non-occurrence was not the fault of the party seeking to have the non-occurrence excused
3. non-occurrence of the event that made the occurrence of the condition impracticable was a basic assumption of the parties when entering into the contract
4. occurrence of the condition is not a material part of the agreed exchange
5. forfeiture would result if its non-occurrence was not excused.

Question 12

Disproportionate forfeiture BLL:

Answer 12

court may excuse the non-occurrence of a condition if:
failure to excuse would cause disproportionate forfeiture
condition was not a material part of the agreed exchange.

Question 13

Waiver BLL:

Answer 13

non-occurrence of a condition is excused if:

1. party whose duty is subject to the condition manifests an intention to perform the duty despite the non-occurrence of the condition
2. occurrence of the condition is not a material part of the agreed exchange