Discharge Flashcards
What are the five different ways of discharging a contract?
- Agreement
- Performance
- Impossibility of performance
- Operation of law
- Breach of contract
Agreement Parameters?
- Can be waived, substituted or provision in contract
- Waiver agreements are what can discharge contract (both unhappy)
- Substitution of new contract is called novation
- Proviso (something in contract specifically states how contract ends, 2 of these)
In relation to Proviso, what is condition precedent and condition subsequent?
Condition Precedent - If term is met, contract proceeds, if not, terminated
Condition Subsequent - If something does not happen contract will not proceed
Performance Parameters?
Once performed, obligation is finished. Contract ends
Impossibility of Performance Parameters?
- Sometimes it becomes impossible to perform
- Impossibility through no fault of yours
- Frustration of contract (force measure)
- For example, person is no longer able to do it safely because they are sick
Operation of Law Parameters?
- When the law permits you to end contract (statues)
- Statue of limitations
- Direct sellers act - given until next EOD to void
- Example: payday loans must be specific
What is the statue that regards Bankruptcy in Canada?
Bankruptcy and Insolvency Act
What are the points of Bankruptcy Law?
- Provide and orderly fair distribution of aid debtors assets amongst the creditors
- Provide insolvent but unfortunate debtor an opportunity to receive a discharge and star tall over again with a clean slate
What are the 3 type of categories for creditors?
- Secured creditor
- Preferred creditor
- Ordinary creditor
Secured Creditor?
- Legal right to seize assets of bankruptor
- May have a debenture security, chattel mortgage, or mortgage on real estate
Preferred creditor
- Funeral expenses
Trustees, wages due to any employees but limited to 6 months at a max of $2000
Ordinary Creditor
- Very rare if they get paid a dollar owing to them
- Dividing the Money pro rate is what it is called by dividing total amount of money left and total debt in total, and splitting it amongst all creditors
What are the two ways a person can end in bankruptcy?
- Voluntary assignment
2. Petition
What is the main alt to bankruptcy?
Proposal:
1. Meet with a trustee and make a proposal
Division 1 - Deals with corporations and with individuals who owe over $250,000
Division 2 - Individuals who owe under $250,000
What Is the company creditors arrangement act?
- Corporations that owe over 5mil
- Puts a stay against any claims for money against the corporation
- Debtor seeking protection must submit plan for reorganization
What is farm debt meditation act?
- Farmers cannot be petitioned into bankruptcy
- Can make voluntary sign in bankruptcy
- Only happens when farmers cannot meet obligations when it is due or if property was all sold and can’t pay debts
Breach of Contract Parameters?
Damages - when there is a right to remedy
What are the two ways that a breach happens?
- Anticipatory breach
2. Failure to preform
Breach: Anticipatory
Other party of contract is notified ahead of time, the individual is not going to perform
Breach: Failure to Perform
Individual does not perform contract
Compensation Objective:
To put the hurt party back in the state prior to breach of contract
What do we look at before we start a lawsuit?
- What are the chances of success
2. If successful what are the damages?
What are the four types of damages?
- General
- Special
- Nominal
- Punitive/exemplary
General Damages
Pains and suffering
Special Damages
Out of pocket damages
Nominal
$1
Punitive/Exemplary
Awarded as punishment not to enrich, but as an example to others
Liquidated Damages?
Damages that are agreed upon ahead of time in the contract in event of breach
What is the interest act?
- Federal statue
- If you receive a bill or agree to an invoice
- Interest must be listed as a per annum basis
De minimum not curat lex
If something is exceedingly small, the law has no remedy
