Contracts: Discharge, Breach, and Remedies

Question 1

Novation

Answer 1

Cancel contract and a NEW contract is signed with a NEW 3rd party debtor assume liability in place of the original debtor

Question 2

Recission

Answer 2

Contract is canceled and parties are restored to their original position as if the contract had never been made

Question 3

Release

Answer 3

party signs an agreement (or orally) waives performance by the other party

Question 4

Revocation

Answer 4

Party informs the other party that the offer is no longer valid.

Question 5

List what would discharge a party from the contract

Answer 5

A material breach
Prevention of Performance
Accord & Satisfaction

Question 6

Courts will enforce

Answer 6

liquidated damages if the amount is agreed upon in advance and reasonable

Question 7

Adjudicated Incompetence

Answer 7

will render a contract void

Question 8

What can effect the amount of monetary damages a non-breaching party can receive

Answer 8

Foreseeability of damages

Mitigation of Damages

Question 9

Whats the difference between a mistake in fact vs mistake in value/quality

Answer 9

Mistake in fact = can make a contract unenforceable

Mistake in value/quality = still valid

Question 10

A court would generally grant remedy for

Answer 10

a specific performance contact (Patent)

Question 11

A contingent claus

Answer 11

does not make the suretys liable

Question 12

Compensatory damages or Specific performance on transfer of real estate

Answer 12

are one of the few cases where the courts will demand one or the other

Question 13

Anticipatory breach

Answer 13

beach the contact in advande.

Question 14

Promissory estoppel

Answer 14

Substitiution Consideration

Question 15

Constructive eviction is where

Answer 15

a landlord does (or fails to do) something that he has legal duty to provide. (not paying utilities.)