PowerPoint 9

Question 1

Most contracts end in ___.

Answer 1

Discharge.

Question 2

How do contracts end through discharge?

Answer 2

• Performance.
• Agreement.
• Operation of law.
• Breach.

Question 3

Performance

Answer 3

Fulfillment of obligations.

Question 4

If obligations are not clearly defined, it may be difficult to…

Answer 4

Determine if proper performance occurred.

Question 5

Tendering

Answer 5

Doing what is required under the contract.

Question 6

Debtor has a primary obligation to tender payment in a ___ manner.

Answer 6

Reasonable.

Question 7

Debtor does not have to tender payment if…

Answer 7

It would be obviously refused.

Question 8

Why is the use of legal tender risky?

Answer 8

Because lost or stolen cash is extremely difficult to recover.

Question 9

Payment on debit cards is…

Answer 9

Final.

Question 10

Payment on credit cards is…

Answer 10

Made using the credit card company.

Question 11

Payment on cheques is…

Answer 11

A conditional payment as bank may not honour, or customer may countermand cheque before cashed.

Question 12

Payment on PayPal is…

Answer 12

3PPS (third party payment system).

Question 13

If you do not stipulate method of payment, it defaults to…

Answer 13

Cash or debit.

Question 14

Tender of Performance

Answer 14

When performance involves provision of goods or services rather than money.

Question 15

What is the general rule regarding the tender of performance?

Answer 15

Obligations must be exactly performed difficulties with entire contracts: no payment due unless all work performed.

Question 16

Quantum Meruit

Answer 16

To ask for a reasonable amount of money for the work that you did, if you did not fulfill the whole contract.

Question 17

Option to Terminate

Answer 17

Unilateral right to discharge.

Question 18

Conditional Contract

Answer 18

Parties agree that contract is affected by an event.

Question 19

Condition Subsequent

Answer 19

We’ll let you skate, unless a concert is booked for that evening later on. Agreement in place unless something happens.

Question 20

True Condition Precedent

Answer 20

I will build something for you only if government allows it. Relies on government. No enforceability until that event occurs.

Question 21

Condition Precedent

Answer 21

Only enforceable if something occurs. Agreement is only in place if something occurs.

Question 22

Accord and Satisfaction

Answer 22

Occurs when a party gives up right to demand performance in return for a new benefit.

Question 23

Difference between accord and satisfaction:

Answer 23

Accord is a new agreement, while satisfaction is a new consideration.

Question 24

Do both parties need consideration in accord and satisfaction?

Answer 24

Yes. Can be forbearance (giving up right to enforce old contract).

Question 25

Release

Answer 25

Discharge under seal. Used to discharge a contract without fresh consideration. Seal is substitute for consideration.

Question 26

Variation

Answer 26

Small changes to existing contract. Contract retained on new terms.

Question 27

Is consideration required for variation?

Answer 27

Yes.

Question 28

Novation

Answer 28

Old contract discharged and replaced with new contract.

Question 29

Two-Party Novation

Answer 29

Same parties, different contract.

Question 30

Three-Party Novation

Answer 30

Different parties, same contract.

Question 31

Waiver

Answer 31

Abandonment of right to performance.

Question 32

Difference between waiver and release:

Answer 32

Pretty much the same thing.

Question 33

An exclusion clause is a ___.

Answer 33

Waiver.

Question 34

Contract may be discharged by operation of law. True or false?

Answer 34

True.

Question 35

Examples of operation of law:

Answer 35

- Frustration. - Lapse of limitation period. - Bankruptcy.

Question 36

Frustration

Answer 36

Contract impossible to perform.

Question 37

Breach

Answer 37

Failure to fulfill contractual promise.

Question 38

Can a contract be discharged for breach?

Answer 38

Yes.

Question 39

What determines whether contract is discharged because of breach?

Answer 39

- Condition (substantial term). - Warranty (lesser term). - Intermediate (hybrid term).

Question 40

Breach of Condition

Answer 40

You did not get what you asked for as part of the contract. Wrong size TV.

Question 41

Breach of Warranty

Answer 41

What you got is broken. TV does not work.

Question 42

You only get recision automatically if...

Answer 42

It was a breach of condition.

Question 43

Are you guaranteed to get recision in cases of breach of warranty?

Answer 43

No. You can get reimbursed for repairs. However, seller does not have to give you money back.

Question 44

Defective Performance

Answer 44

You did not complete what you were expected to complete.

Question 45

Deviation

Answer 45

The product was not the same as the one that you ordered. Nike instead of Adidas.

Question 46

Anticipatory Breach

Answer 46

There's a time for performance in the future, and I'm going to breach when that time comes. Gives non-breaching party options.

Question 47

Self-Induced Impossibility

Answer 47

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