Discharge of Duties Flashcards
The subsequent physical incapacity of a person necessary to effectuate a personal services contract serves to discharge the contract by:
Impossibility
A promise of performance will have what effect on the duty to perform?
No effect, the duty to perform is not discharged.
__________ exists if the purpose of the contract has become valueless by virtue of an unforeseeable supervening event.
Frustration
Supervening illegality occurs when the subject matter of the contract has become illegal due to
a subsequently enacted law or other governmental act.
__________ occurs when an unanticipated or extraordinary event makes it impracticable to perform.
Impracticability
___________ is an agreement between the parties to mutually give up their rights to performance under a contract
Rescission
Is consideration necessary for a valid mutual rescission of a contract?
Yes, each party giving up her right to counterperformance from the other party serves as consideration for the agreement to rescind the contract.
In general, an accord (or a modification not involving a sale of goods) must be supported by
consideration
Will a binding promise to perform serve to discharge a party’s duty to perform?
No, because the tendering party must offer to perform and possess the present ability to perform.
An accord will not be supported by consideration that __________.
Serves as partial payment on an undisputed debt
A contract may be discharged by a new contract that substitutes a new party to receive benefits and assume duties that had originally belonged to one of the original parties under the terms of the original contract. This is known as a discharge by:
Novation
When a debtor breaches an accord agreement by failing to make an immediate satisfaction, the creditor:
May sue on either the original contract or the accord agreement
Will a binding promise to perform serve to discharge a party’s duty to perform?
No, because the tendering party must offer to perform and possess the present ability to perform.
The death of a party to a contract:
Discharges the contract only if that party was necessary to effectuate the contract
A mutual agreement between two parties to a contract that each will give up her respective rights to performance from the other is known as:
A mutual rescission.
