PowerPoint 9 Flashcards
Most contracts end in ___.
Discharge.
How do contracts end through discharge?
- Performance.
- Agreement.
- Operation of law.
- Breach.
Performance
Fulfillment of obligations.
If obligations are not clearly defined, it may be difficult to…
Determine if proper performance occurred.
Tendering
Doing what is required under the contract.
Debtor has a primary obligation to tender payment in a ___ manner.
Reasonable.
Debtor does not have to tender payment if…
It would be obviously refused.
Why is the use of legal tender risky?
Because lost or stolen cash is extremely difficult to recover.
Payment on debit cards is…
Final.
Payment on credit cards is…
Made using the credit card company.
Payment on cheques is…
A conditional payment as bank may not honour, or customer may countermand cheque before cashed.
Payment on PayPal is…
3PPS (third party payment system).
If you do not stipulate method of payment, it defaults to…
Cash or debit.
Tender of Performance
When performance involves provision of goods or services rather than money.
What is the general rule regarding the tender of performance?
Obligations must be exactly performed difficulties with entire contracts: no payment due unless all work performed.
Quantum Meruit
To ask for a reasonable amount of money for the work that you did, if you did not fulfill the whole contract.
Option to Terminate
Unilateral right to discharge.
Conditional Contract
Parties agree that contract is affected by an event.
Condition Subsequent
We’ll let you skate, unless a concert is booked for that evening later on. Agreement in place unless something happens.
True Condition Precedent
I will build something for you only if government allows it. Relies on government. No enforceability until that event occurs.
Condition Precedent
Only enforceable if something occurs. Agreement is only in place if something occurs.
Accord and Satisfaction
Occurs when a party gives up right to demand performance in return for a new benefit.
Difference between accord and satisfaction:
Accord is a new agreement, while satisfaction is a new consideration.
Do both parties need consideration in accord and satisfaction?
Yes. Can be forbearance (giving up right to enforce old contract).
Release
Discharge under seal. Used to discharge a contract without fresh consideration. Seal is substitute for consideration.
Variation
Small changes to existing contract. Contract retained on new terms.
Is consideration required for variation?
Yes.
Novation
Old contract discharged and replaced with new contract.
Two-Party Novation
Same parties, different contract.
Three-Party Novation
Different parties, same contract.
Waiver
Abandonment of right to performance.
Difference between waiver and release:
Pretty much the same thing.
An exclusion clause is a ___.
Waiver.
Contract may be discharged by operation of law. True or false?
True.
Examples of operation of law:
- Frustration.
- Lapse of limitation period.
- Bankruptcy.
Frustration
Contract impossible to perform.
Breach
Failure to fulfill contractual promise.
Can a contract be discharged for breach?
Yes.
What determines whether contract is discharged because of breach?
- Condition (substantial term).
- Warranty (lesser term).
- Intermediate (hybrid term).
Breach of Condition
You did not get what you asked for as part of the contract. Wrong size TV.
Breach of Warranty
What you got is broken. TV does not work.
You only get recision automatically if…
It was a breach of condition.
Are you guaranteed to get recision in cases of breach of warranty?
No. You can get reimbursed for repairs. However, seller does not have to give you money back.
Defective Performance
You did not complete what you were expected to complete.
Deviation
The product was not the same as the one that you ordered. Nike instead of Adidas.
Anticipatory Breach
There’s a time for performance in the future, and I’m going to breach when that time comes. Gives non-breaching party options.
Self-Induced Impossibility
???
