Excuses for Nonperformance Flashcards
Impracticability (same in CL and UCC 615)
1) performance has been made impractical
2)the non-occurrence of the event that made performance impracticable was a basic assumption of the contract
3)the occurrence of the event making performance impractical was not the fault of the party claiming the defense
4) the party claiming the defense did not assume a greater obligation than the law would normally imply
Frustration of Purpose
1) an event occurs that so seriously affects the value of performance that it frustrates the contract’s central purpose
2) the non-occurrence of the event was a basic- assumption of the contract
3) the party seeking relief was not at fault in causing the occurrence of the event
4) the party seeking relief did not assume a greater obligation than the law would normally imply
Divisibility
A contract is divisible if it can be broken into discrete units that each contain their own exchange of matching performances; a party who has only substantially performed one part of the contract may still recover for that portion of the work performed
UCC Identified Goods, goods are identified when:
1) goods are marked or designated to the contract
2) goods are shipped
3) crops are planted
4) young are conceived
UCC, Casualty to Identified Goods
when goods:
1) that have been identified at the time of formation are
2) destroyed or lost without fault of either party
3) before risk passes to the buyer (FOB)
the contract can be avoided by the seller
FOB Rule statement
A term used to indicate who is liable for goods damaged or destroyed during shipping; the seller bears the expense of shipping goods to the named place and the risk of loss passes from the seller to the buyer at that named place
FOB “Place of shipment”
seller assumes the risk of loss until the goods are shipped; after that the buyer assumes the risk of loss
FOB “Place of delivery”
seller assumes the risk of loss until the goods are delivered; after that the buyer assumes the risk of lose
