Performance and Discharge: Chapter 17

Question 1

Discharged

Answer 1

A party is discharged when she has no more duties under a contract

Question 2

Are all contracts discharged by full performance?

Answer 2

No. Sometimes, the parties discharge a contract by agreement

Question 3

Commercial Impracticability

Answer 3

a defense for when things go amiss; Polly shouldn’t have to rent space for a restaurant that is closed

Question 4

Condition Precedent

Answer 4

a condition that must occur before a particular contract duty arises

Question 5

Condition

Answer 5

an event that must occur before a party becomes obligated under a contract

Question 6

Express Conditions

Answer 6

no special language is necessary to create the condition; courts will enforce as long as parties intended to create condition

Question 7

Implied Conditions

Answer 7

the parties say nothing about a condition but it is clear from their agreement that they have implied one

Question 8

What is the key to all condition clauses?

Answer 8

if the condition does not occur, one party will probably be discharged without performing

Question 9

Condition precedent

Answer 9

a condition in which an event must occur before a duty arrises

Question 10

Condition Subsequent

Answer 10

a condition in which the condition must occur after the particular duty arises; if condition does not occur, the duty is discharged

Question 11

What’s the difference between condition precedent and condition subsequent?

Answer 11

who must prove whether the condition occurred. Precedent - plaintiff proves condition happened. Subsequent - defendant must to relieve himself of any obligation

Question 12

Concurrent Conditions

Answer 12

both parties have a duty to perform simultaneously

Question 13

Public Policy

Answer 13

when a court will refuse to enforce an express condition on the grounds that it is unfair and harmful to the general public

Question 14

Strict Performance

Answer 14

enables one party to benefit without paying and sends other empty-handed. A party is generally not required to render strict performance unless the contract expressly demands it and such a demand is reasonable.

Question 15

Substantial Performance

Answer 15

In a contract for services, a party that substantially performs its obligations will receive the full contract price, minus the value of any defects; if fail, only recover value of work if that

Question 16

Personal Satisfaction Contracts

Answer 16

a contract in which the promisee makes a personal, subjective evaluation of the promisor’s performance

Question 17

subjective standard

Answer 17

means that the promisee’s personal views will greatly influence her judgement, even if her decision is foolish and unfair; only personal satisfaction contracts

Question 18

Objective standard

Answer 18

used if assessing the work does not involve personal judgement or if the contract failed to explicitly demand personal satisfaction

Question 19

Restatement of Contracts’s Good Faith

Answer 19

“Every contract imposes upon each party a duty of good faith and fair dealing in its performance and its enforcement.”

Question 20

Time of the essence clauses

Answer 20

A time of the essence clause will generally make contract dates strictly enforceable; needs more than a date, must include clause

Question 21

Breach

Answer 21

When one party breaches a contract, the other party is discharged

Question 22

Material Breach

Answer 22

a breach that substantially harms the innocent party and for which it would be hard to compensate without discharging the contract

Question 23

Anticipatory Breach

Answer 23

a breach in which one party makes it unmistakably clear that it will not honor the contract

Question 24

Statute of Limitations

Answer 24

begins to run at the time of injury and will limit the time within which the injured party may file suit

Question 25

True Impossibility

Answer 25

means that something has happened making it utterly impossible to do what the promisor said he would do

Question 26

True impossibility is generally limited to these three causes:

Answer 26

Destruction of the Subject Matter, Death of the promisor in a Personal Services Contract, and Illegality

Question 27

Destruction of the Subject Matter

Answer 27

good for money, goods get fungus, bad

Question 28

Death of the promisor in a personal services contract

Answer 28

only if service cannot be transferred to someone else

Question 29

Illegality

Answer 29

impossibility by breaking the law if so doing