Quiz 9 - Test 2 Flashcards
Promise
The undertaking to act or refrain from acting in a specified way
Condition
an event that is not certain to occur
Commercial impracticability OR impossibility of performance
an event, not anticipated by either party, that makes performance extraordinarily difficult and unfair to one of the parties
frustration of purpose
Contract has no remaining value for a party because of an unanticipated event.
force majeure
Contract provision excusing performance for an event such as an act of God, labor strike, accident, transportation problem, or other things the parties may choose to cover.
perfect performance OR strick performance
No deviation from contract.
substantial performance
The contract has been performed but there are minor deviations.
material breach OR substantial breach
breach of contract usually excusing other party from further performance
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 the other party will not perform. It must be a clear cut belief, cannot be based on assumption.
repudiation
A party’s words or action indicating they intend to breach the contract, or not to perform the contract.
recission
A Mutual agreement between the parties to cancel the contract.
rescind
A unilateral decision to cancel the contract by the offeror.
