Ch13 Termination of Contracts Flashcards
Contract is discharged when all terms have been fulfilled.
Performance
Factors of fulfillment
Performance
Time of performance
Factors of fulfillment
Tender of performance
Factors of fulfillment
Tender of payment
Factors of fulfillment
Satisfactory performance
Factors of fulfillment
Substantial performance.
Factors of fulfillment
Discharge in bankruptcy
Discharge by Operation of Law
Running of the statute of limitations
Discharge by Operation of Law
Alteration of written contract
Discharge by Operation of Law
Parties can agree to not carry out the contract’s terms; it is then discharged.
Voluntary Agreement of the Parties
No contract is ever made if the act is impossible to perform.
Impossibility of Performance
Destruction of the subject matter
Impossibility of Performance: Common Causes
New laws making the contract illegal
Impossibility of Performance: Common Causes
Death of physical incapacity of a person to render personal services.
Impossibility of Performance: Common Causes
Act of the other party
Impossibility of Performance: Common Causes
If innocent party accepts breach the contract is discharged.
Acceptance of Breach of the Contract by One of the Parties
Nominal damages
Sue for Damages
Compensatory damages
Sue for Damages
Punitive damages
Sue for Damages
Liquidated damages
Sue for Damages
Aggrieved party may do so if contract is breached.
Rescind the Contract
set aside or cancel
Rescind
Available in limited cases
Sue for Specific Performance
Contracts for the performance of personal services will not be specifically ordered.
Sue for Specific Performance
Failure to perform with ability and care normally exercised by people in a profession.
Malpractice
Accountant is liable to client who suffers.
Malpractice
This is the sum fixed by the contract for breach where actual damages are difficult to measure.
Liquidated
These type of damages are what the party gets due to a breach of contract which is the loss plus additional damages to punish the defendant.
Punitive
This is an offer to perform an obligation in satisfaction of the terms of a contract.
Tender of Performance
This is a small amount awarded when there is a technical breach of contract but no injury.
Nominal
In the cases of doctors, lawyers, or accountants, this is the failure to perform with ability and care normally exercised by people in a profession.
Malpractice
These three words are regarding a person’s right to sue must be exercised within a fixed amount of time.
Statute of Limitations
When a contract is breached, the aggrieved party may elect to do this.
Rescind
If the act called for in an alleged contract is ___________ to perform at the time the contract is made, no contract ever comes into existence.
Impossible
Money or property I might receive because of the breach of contract.
Damages
There are these many common methods by which contracts may be terminated.
Five
When of the parties fails or refuses to perform the obligations assumed under the contract then this happens.
Breach
These type of damages are what a party gets that equals the loss but no more.
Compensatory
If the tender is refused the debt is not __________.
Discharged
If one of the parties does this to a contract without the consent of the other parties then the innocent party is discharged.
Alters
A tender in the form of a check is not a proper tender. With a few minor exceptions, this is any form of US money
Legal
One party announces intention not to perform prior to time to perform
Anticipatory Breach
Failure or refusal to perform contractual obligations
Breach
Amount equal to the loss sustained
Compensatory Damages
Sum of money awarded to injured party
Damages
Contract provision excusing performance when extraordinary event occurs
Force Majeure Clause
Any form of lawful money
Legal Tender
Amount paid to one party to punish the other
Punitive Damages
Carrying out the terms of contract
Specific Performance
Time within which right to sue must be exercised or lost
Statute of Limitations
Offer and ability to pay money owed
Tender of Payment
- When all terms of a contract have been fulfilled, the contract is discharged by novation.
False
- Legal tender usually refers to any form of U.S. money.
True
- If the tender used as payment is refused, the debt is discharged.
False
- Satisfactory performance and substantial performance are the same thing.
False
- Bankruptcy can discharge contracts.
True
- A debt that has been outlawed by the statute of limitations can never be revived.
False
- In some cases, a person other than the injured party of a contract may sue a professional person for malpractice.
True
- A substantial, intentional alteration of a written contract without the consent of the other party discharges the contract.
True
- An offer to perform an obligation in satisfaction of the terms of a contract is called:
Tender of Performance
- If a contract involves specific subject matter, the destruction of this matter without the fault of the parties:
discharges the contract because of impossibility of performance
- Causes of contracts being discharged because of impossibility of performance include:
a. new laws making the contract illegal.
b. physical incapacity of persons to render personal services.
c. wrongful acts of other parties.
D. ALL OF THESE
- If a plaintiff in a suit for breach of contract cannot prove any substantial loss but just wants to prove a point, the most likely type of damages she will get is called ________ damages.
Nominal
- Damages paid to go beyond merely compensating to punishing the defendant are called ________.
Punitive Damages
- In cases when neither a suit for damages nor rescission will constitute adequate remedy, what may be applied?
Suit for specific performance
