Contract breach (chap 7) Flashcards
what is a contract breach?
it happens when a party does not perform as specified in the agreement
- when it is small is called an immaterial breach of contract.
Definition Performance Excuses
it refers to excuses for incorrectly assessing future events when contract was written
Definition of Formation defences
claims that the contract does not exist
Formation defences: Duress
One party agrees without adequate consideration since their decision was made under dire circumstances.
Formation defences: Mistake
Unilateral Mistake is rare as a ground for nullifying contracts
- Nullifying a contract based on this argument, may decrease the reward of those had information and allow inefficient in the future.
Formation defences: Incompetence/Incapacity
Incompetence/Incapacity disqualifies a perrson from making a contract since they may not understand what they are agreeing to.
Also being a minor
Formation defences: Fraud
one party gains an unfair or dishonest advantage as a result of their actions.
such as contracts may be voidable at request of the deceived.
their rational intention would not be reflected in the contract terms.
Formation defences: Unconsicionability
It is a defense against enforcement of a contract when holding the participants to the terms would be very unfair to one side.
Formation defences: Perrformance Excuses
it is based on the excuses should be reserved for force majeure circumstances - beyond the control of the party.
