Performance and Remedies

Question 1

Define Quasi Contract Recovery

Answer 1

A remedy to give a reasonable value benefit to one party and avoid an unjust enrichment received by the other. Ex. on page 88

Question 2

Other than damages what are the remedies for contract breaches?

Answer 2

1. ) Specific Performance

2. ) Recission

Question 3

Define Waiver

Answer 3

A relinquishment of a right due to a party’s breach

Question 4

Define “Liquidated Damages”

Answer 4

A specific sum is agreed to be paid in the formation of a contract in the event that in the future the contract is breached

Question 5

List the various types of conditions that can exist in contract sales

Answer 5

1. ) Precedent
2. ) Subsequent
3. ) Concurrent

Question 6

List the ways a contract can be considered impossible or impractible

Answer 6

1. ) Death or Insanity
2. ) Destruction of Specific Subject Matter
3. ) Illegality
4. ) Commercial Impractibility

Question 7

What is meant by substantial performance?

Answer 7

Substitute performance done in good faith
Substituted performance is for practical purposes just as good
Party can be compensated for substitution

Question 8

Define Rescission

Answer 8

The undoing of a contract so as to return the parties to their original position

Question 9

Define compensatory damages

Answer 9

All costs or loss actually suffered and proved caused by the breach

Question 10

What happens when a condition precedent fails?

Answer 10

The duty to perform is discharged

Question 11

Define mutual rescission

Answer 11

An enforceable mutual agreement to discharge all contract obligations and restore the parties to their pre-contract positions

Question 12

What requirements must be present for the enforceable liquidated damages provisions of a contract?

Answer 12

1. ) Damages difficult to estimate if a breach

2. ) The amount stated is a reasonable sum estimate (not a penalty)

Question 13

List the ways a contractual obligation can be discharged by operation of law

Answer 13

1. ) Material Alteration
2. ) Statute of Limitations
3. ) Bankruptcy Decree
4. ) Impossibility or Impracticability of performance

Question 14

Define Novation

Answer 14

By a valid contract, a new party is substituted for one of the original parties thereby terminating the original contract

Question 15

List the ways a contract can be discharged

Answer 15

1. ) By occurrence of failure of condition
2. ) By performance or breach of contract
3. ) By agreement
4. ) By operation of law

Question 16

List the types of damages available for remedies

Answer 16

1. ) Nominal
2. ) Compensatory
3. ) Punitive
4. ) Liquidated

Question 17

List the types of contractual discharge that can occur by agreement or party action

Answer 17

1. ) Release
2. ) Waiver
3. ) Mutual Rescission
4. ) Novation
5. ) Accord and Satisfaction