Ch 20 Terminology

Question 1

Accord and Satisfaction

Answer 1

an agreement to perform in a different manner than originally called for, and the completion of that agreed upon performance

Question 2

Anticipatory Breach

Answer 2

the announcement before the time for performance by a party to a contract that he or she is not going to perform

Question 3

Assignee

Answer 3

one to whom a right is transferred by assignment

Question 4

Assignment

Answer 4

the transfer of a right from one person to another

Question 5

Assignor

Answer 5

one who transfers a right by assignment

Question 6

Bankruptcy

Answer 6

a legal process that aims to give debtors who are ocerwhelmed with devt a fresh start and to provide a fair way of distributing a debtors assets among all creditors

Question 7

Breach of Contract

Answer 7

the failure of a party to a contract to carry out the terms of the agreement

Question 8

Compensatory Damages

Answer 8

damages that compensate the plaintiff for actual losses resulting from the breach

Question 9

Damages

Answer 9

the monetary loss suffered by a party as a result of a wrong

Question 10

Delegation

Answer 10

the transfer of a duty by one person to another

Question 11

Exemplary Damages/Punitive Damages

Answer 11

damages as a measure of punishment for the defendants wrongful acts

Question 12

Impossibility

Answer 12

a method of discharging a contract that is impossible to perform not merely difficult or costly

Question 13

Incidental Beneficiary

Answer 13

one who is indirectly benefited by a contract

Question 14

Incidental Damages

Answer 14

reasonable expenses that indirectly result from a breach of contract

Question 15

Intended Beneficiary

Answer 15

the third party of a contract made with the purpose of benefiting that party

Question 16

Legal Tender

Answer 16

coin paper or other currency that is sufficient under law for the payment of debts

Question 17

Liquidated Damages

Answer 17

damages that are agreed on by the parties at the time of the execution of a contract in the event of a subsequent breach

Question 18

Mitigate

Answer 18

Lessen; keep as low as possible

Question 19

Nominal Damages

Answer 19

damages in name only

Question 20

Novation

Answer 20

an agreement whereby an original party to a contract is replaced by a new party

Question 21

Performance

Answer 21

the discharging of a contract by doing that which one agreed to do under the terms of the contract

Question 22

Privity of Contract

Answer 22

the relationship that exist between contracting parties

Question 23

Specific Performance

Answer 23

an order by the court commanding a breaching party to do that which he or she agreed to do under the terms of contract

Question 24

Substantial Performance

Answer 24

a doctrine allowing a contracting party to sue the other party for breach even though slight omissions or deviations were made in the first party’s own performance of the contracat

Question 25

Tender of Payment

Answer 25

to offer to the other party the money owed under a contract

Question 26

Tender of Performance

Answer 26

to offer to do that which one has agreed to do under the terms of a contract

Question 27

Third Party Beneficiary

Answer 27

someone for whose benefit a promise is made but who is not a party to the contract

Question 28

Time Is Of The Essence

Answer 28

time is critical

Question 29

Toll

Answer 29

to bar, defeat, or take away