Defense/Termination To All Contracts Flashcards
What is mutual rescission?
Both parties not wanting to do the contract
What is novation?
Having a third party to take your place
What is substitute contract?
Having another contract that replaces the old one
What is accord/satisfaction
A lower amount than the original one. Taking the big money now instead of the large amount you will pay per month
What is performance
Doing what you say you’ll do to discharge a contract
What is substantial performance
Doing less than what was obligence
What is material breach
Where you don’t have to perform
What is anticipatory repudiation?
Someone calls you on November 1st that they will not give you the bricks you asked for in December. You can sue when they deteriorate the contract and not have to wait.
What is operation of law?
Like statue of limitations. Against the law and public policy
What is frustration of purpose?
Guy pays to rent a room to view a king coronation. Guy wanted to see the King’s coronation but didn’t get it. He can get out of contract because it no longer exists/no more kings coronation. He has to tell them the purpose first
What is impossibility of performance?
Storm destroyed your tomatoes so you are excused from the duty because it is impossible to deliver.
What is executory and execute?
Executory: making the promise
Execute: fulfillment
Ex) Paying $5 for milk. The promise is executory and one you gain the items it is executed.
Simplified version of all ways to discharge contract
1) By agreement
a) mutual rescission
b) novation
c) substituted contract
d) accord/satisfaction
2) By performance
a) complete
b) substantial
3) By breach
a) material breach
b) anticipatory repudiation
4) By operation of law
a) statue of limitations
b) impossibility of performance
c) frustration of purpose
5) By failure of a condition
a) precedent
b) concurrent
c) subsequent
d) satisfaction of a party
