What is anticipatory repudiation?
An unambiguous statement or conduct that the repudiating party will not perform
When must the statement or conduct for anticipatory repudiation?
Before performance is due
What is the one party's option when the other anticipatorily repudiates?
Immediate claim for damages
Under anticipatory repudiation, when is the other party's claim for damages not immediate?
When the non-repudiating party has finished performance
Can anticipatory repudiation be withdrawn?
Yes, unless there has been a material change in position by the other party
What happens when anticipatory repudiation is withdrawn?
The duty is reimposed on both parties
When anticipatory repudiation is withdrawn, what can the non-repudiating party do?
Request adequate assurances and delay their performance until such is given
Under article 2, when might a party be insecure as to whether or not the other party will perform?
When B has reasonable grounds through A's words or conduct, to be insecure as to whether or not A will provide goods or pay for them
When one party is insecure, what can they do?
Request adequate assurances, and, if commercially reasonable, can delay performance until such is given
For what breaches can damages be recovered for?
What breaches excuse the other party from performing?
In what instance will a breach not be material?
When there is substantial performance
What question do we ask when the breach is due to quality of performance?
Is performance roughly comparable?
What question do we ask when the breach is due to quantity of performance?
Is performance for less than half?
What is the general consequence where there is a breach when less than half is done?
Entire contract is excused, even work done
Where a contract is breached via quantity, what is the exception that the entire contract is excused?
Where the contract expressly divides performance, a breaching party can recover for work done even when there is a material breach
For a divisible contract, what sort of division is needed?
The divided payments need to correspond with the value of the work done, and must not merely be progress payments
What is an express condition?
Language in a contract that limits a party's obligation to perform, e.g. as long as, only if, etc
What is the result where an express condition does not occur?
Excuse, not breach
What is the standard which compliance of an express condition must meet?
The condition must be strictly complied with
In what instances might a court refuse to require strict compliance with an express condition?
Where strict compliance would cause excessive harm to the other party
With a condition requiring personal satisfaction with performance, what is the standard?
Whether a reasonable person would be satisfied
What are the two instances in which an express condition can be waived?
1. Party to benefit from it can expressly waive
2. Party to benefit from it acts in bad faith so the condition will not occur; this can waive it
What is rescission?
Mutual agreement to cancel the contract
When is rescission available?
Only whilst performance is still remaining
What is accord and satisfaction?
Agreement between parties to an existing contract to accept a different performance in satisfaction of the current contract
When the accord is satisfied, what happens to the old performance obligation?
It is excused
If the accord is not satisfied, what are the other party's options?
Can recover on accord OR original obligation
What words trigger accord and satisfaction?
IF you do Y, THEN you won't have to do X
What is modification?
Agreement by parties to an existing contract to accept a different agreement in satisfaction of the existing obligation