Business Law 17.0

Question 1

5 ways contracts can end

Answer 1

1. expires by its terms
2. full performance by the parties
3. material breach by a party
4. by agreement of the parties
5. by operation of law

Question 2

most common way that contracts end

Answer 2

full performance by the parties

Question 3

contract conditions

Answer 3

sometimes contracts have conditions that must be met before the other party must perform (if you shovel my driveway i will give you money)

Question 4

satisfaction of a party

Answer 4

one party must be satisfied before they are required to perform their part of the contract

Question 5

rule for contract

Answer 5

if the subject matter of the contract is something that is subjective, then all that matters is that the party is satisfied (tailor example)

Question 6

exception to the satisfaction of contract rule

Answer 6

if the contract involves something that is objective (measurable) then the party’s dissatisfaction must be reasonable

Question 7

another rule for contracts

Answer 7

satisfaction of a 3rd party

Question 8

material breach

Answer 8

significant breach, enough to matter (chopstick)

Question 9

rule to determine material breach

Answer 9

we look at how much its off by and how much it costs

Question 10

force majeure

Answer 10

superior force

Question 11

what does force majeure mean

Answer 11

sometimes parties can be exercised from performing under a contract due to serious events that are out of control (natural disasters)