Quiz 9 Flashcards
Condition
An event that is not certain to occur
Promise
The undertaking to act or refrain from acting in a specified way
Commercial impracticability
An event, not anticipated by either party, that makes performance extraordinarily difficult and unfair to one of the parties
Impossibility of performance
If when making contract basic assumption of contract can not be held
Frustration of purpose
Contract has no remaining value for a party because of an unanticipated event
Force majeure
Contract provision excusing the performance for an event such as am act of god, labor strike, accident, transportation problem, or other things the parties may choose to cover
Perfect performance
No deviation from contract. Also known as strict performance
Substantial performance
The contract has been performed but there are minor deviations
Material breach
Breach of contract usually excusing other party from further performance. Also known as substantial breach
Time is of the essence
Any delay in performance constitutes breach
Satisfaction clause
Contract provision requiring performance to the satisfaction of a specified individual
Mitigate
To limit or reduce damages
Anticipatory breach
A belief that the other party will not perform. It must be a clear cut belief, can’t be based on assumption
Repudiation
A party’s words or action indicating thy intend to breach the contract or not to perform the contract
Recision
A mutual agreement between the parties to cancel the contract
