Chapter 11: Discharge And Breach Flashcards

(29 cards)

1
Q

Discharge

A

When the parties are relieved of the need to fulfill any promises

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2
Q

Performance

A

Parties fulfill all obligations in contract

-any deviation could be considered a breach

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3
Q

Time is not of the essence

A

Party is entitled to perform late even if the contract sets a specific date

  • does not remove liability of lateness
  • default in contract unless explicitly states otherwise (I.e. time is of the essence)
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4
Q

Debtor

A

Party that owes money

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5
Q

Creditor

A

Party entitled to money

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6
Q

Legal tender

A

Payment of notes (bills) and coins to a certain value

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7
Q

Substantial performance

A

Performance that satisfies contract but is defective or incomplete in some way

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8
Q

Entire contract

A

No part of the price is payable unless all work is done

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9
Q

Option to terminate

A

Term that allows one or both parties to terminate

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10
Q

Conditional subsequent

A

Agreement (contract) will be terminated if a certain event occurs

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11
Q

True condition precedent

A

Contractual term that states an agreement will come into existence only if a certain event occurs

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12
Q

Condition precedent

A

Contractual term that states while contract is made immediately it does not have to be performed until an action/event occurs

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13
Q

Acceleration clause

A

While one action is restricted by conditional precedent the other party can accelerate another action necessary for event to happen

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14
Q

Subsidiary obligations

A

Primary actions may be suspended but parties must perform subsidiary obligations immediately

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15
Q

Recission

A

When fresh consideration is needed for a subsequent contract

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16
Q

Accord & satisfaction

A

Party give up right to demand contractual performance in exchange for new benefit

17
Q

Novation

A

One contract is replaced with another

18
Q

Release

A

An agreement under seal to terminate a contract (substitute for consideration)

19
Q

Waiver

A

A party abandons right to insist on contractual performance

20
Q

Gratuitous promise

A

Bestowed or granted without claims, requires no consideration because is given for free

Gift

21
Q

Frustration

A

Impossible to perform/ performance would have a difficult result because of outside events

22
Q

Acknowledgement

A

An exception to the statute of limitations

-when debtor admits debt exists it restarts limitation period

23
Q

Condition term

A

Breach would subsequently deprive innocent party of the expected benefit of the contract
-remedy: discharge contract and claim damages for losses

24
Q

Warranty

A

Breach would not deprive innocent party of the expected benefit of the contract
-remedy; entitled to any damages ONLY

25
Intermediate
Term that may or may not deprive innocent party of the expected benefit depending on the circumstances
26
Defective performance
Party fails to properly perform an obligation that is due under contract
27
Deviation
Transport departs from agreed upon route or manner of transport
28
Self-induced impossibility
Impossibility caused by one party (who are therefore liable) that frustrates contract
29
Anticipatory breach
Party indicates in advance that breach will occur Innocent party remedies: - wait until obligation is due and claim damages - discharge contract and claim damages after acceptance of breach