Quiz 10 Flashcards
State R2 224. Condition Defined.
A condition is an event, not certain to occur, which must occur, unless its non-occurrence is excused, before performance under a contract becomes due.
State R2 225. Effects of the non-occurence of a condition.
(1) Performance of a duty subject to a condition cannot become due unless the condition occurs or its non-occurrence is excused.
(2) Unless it has been excused, the non-occurrence of a condition discharges the duty when the condition can no longer occur.
(3) Non-occurrence of a condition is not a breach by a party unless he is under a duty that the condition occur.
R2 227. Standards of Preference with Regard to Condition.
(1) In resolving doubts as to whether an event is made a condition of an obligor’s duty, and as to the nature of such an event, an interpretation is preferred that will reduce the obligee’s risk of forfeiture, unless the event is within the obligee’s control or the circumstances indicate that he has assumed the risk.
(2) Unless the contract is of a type under which only one party generally undertakes duties, when it is doubtful whether
(a) a duty is imposed on an obligee that an event occur, or
(b) the event is made a condition of the obligor’s duty, or
(c) the event is made a condition of the obligor’s duty and a duty is imposed on the obligee that the event occur, the first interpretation is preferred if the event is within the obligee’s control. . . .
State R2 84. Promise to Perform a Duty in Spite of Non-Occurence of a Condition.
(1)Except as stated in Subsection (2), a promise to perform all or part of a conditional duty under an antecedent contract in spite of the non-occurrence of the condition is binding, whether the promise is made before or after the time for the condition to occur, unless
(a)occurrence of the condition was a material part of the agreed exchange for the performance of the duty and the promisee was under no duty that it occur; or
(b)uncertainty of the occurrence of the condition was an element of the risk assumed by the promisor.
(2)If such a promise is made before the time for the occurrence of the condition has expired and the condition is within the control of the promisee or a beneficiary, the promisor can make his duty again subject to the condition by notifying the promisee or beneficiary of his intention to do so if
(a)the notification is received while there is still a reasonable time to cause the condition to occur under the antecedent terms or an extension given by the promisor; and
(b)reinstatement of the requirement of the condition is not unjust because of a material change of position by the promisee or beneficiary; and
(c)the promise is not binding apart from the rule stated in Subsection (1).
State R2 261. Discharge by Supervening impracticability. (impossibility/impracticability both)
- Contingency
- Render’s a party’s performance as agreed
- Without his fault
- Non-ocurence was a basic assumption on which the K was made
– considerations:
a. the agreement and surrounding circumstances
b. foreseeability of the contingency
c. Which party is better able to control the risk
State R2 262. Death or Incapacity of Person Necessary for Performance.
If the existence of a particular person is necessary for the performance of a duty, his death or such incapacity as makes performance impracticable is an event the non-occurrence of which was a basic assumption on which the contract was made.
State R2 263. Destruction, Deterioration or Failure to Come Into Existence of Thing Necessary for Performance.
If the existence of a specific thing is necessary for the performance of a duty, its failure to come into existence, destruction, or such deterioration as makes performance impracticable is an event the non-occurrence of which was a basic assumption on which the contract was made.
State R2 264. Prevention by Governmental Regulation or Order.
§264. Prevention by Governmental Regulation or Order.
If the performance of a duty is made impracticable by having to comply with a domestic or foreign governmental regulation or order, that regulation or order is an event the non-occurrence of which was a basic assumption on which the contract was made.
R2 267. Effect on Other Party’s Duties of a Failure Justified by Impracticability or Frustration.
(1) A party’s failure to render or to offer performance may, except as stated in Subsection (2), affect the other party’s duties under the rules stated in §§ 237 and 238 even though the failure is justified under the rules stated in this Chapter.
(2) The rule stated in Subsection (1) does not apply if the other party assumed the risk that he would have to perform despite such a failure.
State R2 377. Restitution in Cases of Impracticability, Frustration, Non-occurence of Condition or Disclaimer by Beneficiary.
A party whose duty of performance does not arise or is discharged as a result of impracticability of performance, frustration of purpose, non-occurrence of a condition or disclaimer by a beneficiary is entitled to restitution for any benefit that he has conferred on the other party by way of part performance or reliance.
State R2 265. Discharge by Supervening Frustration.
- contingency
- frustrates party’s principal purpose
- without his fault
- non-occurence was a basic assumption on which the K was made
– considerations:
a. the agreement and surrounding circumstances
b. foreseeability of the contingency
c. Which party is better able to control the risk
State R2 268. Effect on Other Party’s Duties of Failure Justified by Impracticability or Frustration
(1) A party’s failure to render or to offer performance may, except as stated in Subsection (2), affect the other party’s duties under the rules stated in §§ 237 and 238 even though the failure is justified under the rules stated in this Chapter.
(2) The rule stated in Subsection (1) does not apply if the other party assumed the risk that he would have to perform despite such a failure.
R2 229. Excuse of a Condition to Avoid Forfeiture.
To the extent that the non-occurrence of a condition would cause disproportionate forfeiture, a court may excuse the non-occurrence of that condition unless its occurrence was a material part of the agreed exchange.
State R2 245. Effect of a Breach by Non-Performance as Excusing the Non-occurence of a condition.
Where a party’s breach by non-performance contributes materially to the non-occurrence of a condition of one of his duties, the non-occurrence is excused.
State R2 272. Relief Including Restitution.
(1) In any case governed by the rules stated in this Chapter, either party may have a claim for relief including restitution under the rules stated in §§ 240 and 377.
(2) In any case governed by the rules stated in this Chapter, if those rules together with the rules stated in Chapter 16 will not avoid injustice, the court may grant relief on such terms as justice requires including protection of the parties’ reliance interests.
