Key Terms #7

Question 0

Assignment

Answer 0

The transfer to another of all or part of ones rights arising under a contract.

Question 1

Anticipatory repudiation

Answer 1

An assertion or action by a party

indicating that he or she will not perform a contractual obligation.

Question 2

Breach of contract

Answer 2

The failure, without legal excuse, of

a promisor to perform the obligations of a contract.

Question 3

Condition

Answer 3

A qualification, provision, or clause in a contractual agreement, the occurrence or non occurrence of which creates, suspends, or terminates the obligations of the contracting parties

Question 4

Condition precedent

Answer 4

A condition in a contract that must be met before a party’s promise becomes absolute

Question 5

Condition subsequent

Answer 5

A condition in a contract that, if it occurs, operates to terminate a party’s absolute promise to perform

Question 6

Consequential Damages

Answer 6

Special damages that compensate for a loss that does not directly or immediately result from a breach of contract (such as lost profits), but was reasonably foreseeable at the time the breach or injury occurred.

Question 7

Delegation

Answer 7

A doctrine based on the US constitution which has been construed to allow congress to delegate some it’s power to administrative agencies to make and implement laws

Question 8

Discharge

Answer 8

The termination of an obligation, such as occurs when the parties to a contract have fully performed their contractual obligations

Question 9

Impossibility of performance

Answer 9

A doctrine under which a party to a contract is relieved of his or her duty to perform when performance becomes objectively impossible or totally impracticable

Question 10

Liquidated damages

Answer 10

An amount stipulated in a contract, that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.

Question 11

Mitigation of damages

Answer 11

The requirement that a plaintiff do whatever is reasonable to minimize the damages caused by the defendant

Question 12

Nominal damages

Answer 12

A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered

Question 13

Novation

Answer 13

The substitution by agreement, of a new contract for an old one being terminated

Question 14

Penalty

Answer 14

A contract clause that specifies a certain amount to be paid in the event of a default or breach of contract but is unenforceable because it is designed to punish the breaching party related than to provide a reasonable estimate of damages

Question 15

Performance

Answer 15

The fulfillment of ones duties under a contract- the normal way of discharging one’s contractual obligations

Question 16

Privity of contract

Answer 16

The relationship that exist between the promisor and the promisee of a contract

Question 17

Restitution

Answer 17

An equitable remedy under which a person is restored to his or her original position prior to loss or injury, or placed in the position he or she would have been in had the breach not occurred

Question 18

Specific performance

Answer 18

An equitable remedy in which a court orders the parties to perform as promised in the contract. This remedy I’d normally granted only when the legal remedy (monetary damages) is inadequate.

Question 19

Tender

Answer 19

An unconditional offer to perform an obligation by a person who is ready, willing, and able to do so.