Discharge/Breach of Contract Flashcards
Accord and Satisfaction
Occurs when the parties voluntarily agree to complete the contract, even though all of the terms and conditions have not been met
Actual Damages
The estimated money equivalent for loss or injury sustained
Assignee
The third party to the contract
Assignor
The original party to the contract
Breach of Contract
Occurs when either party default on the contract. Rescission, damages, liquidated damages, or suits for specific performance are actions that may result from breach of contract
Damages
The estimated money equivalent for loss of injury sustained
Discharge of Contract
When performance of the agreed-upon actions has been completed, the contract is discharged
Novation
A formal assumption in which a new borrower is substituted for the original maker of the note
Part Performance
Allows the enforcement of an oral contract covered by the Statute of Frauds where one party to the oral contract has substantially performed
Punitive Damages
To recover amounts over the actual damages suffered as compensation for the breach of the contract
Rescission
Legal remedy of canceling, terminating, or annulling a contract and restoring the parties to their original positions
Specific Performance
Contract performance according to the practice terms agreed upon
Suit for Specific Performance
Judicial action to force a party to carry out the terms of the contract
“Time is of the Essence” Clause
The parties will perform within the limits specified; any party not doing so is considered in breach of contract
