Chapter 12 - Performance of a Contract

Question 1

Promisor

Answer 1

Makes promise that third party seeks to enforce

Question 1

Third-Party Beneficiary

Answer 1

Someone who is not a party to a contract but stands to benefit from it

Question 2

Creditor Beneficiary

Answer 2

Aperson or legal entity that is owed or is believed to be owed a duty by a promisee that is fulfilled upon the performance of certain obligations by the promisor

Question 3

Donee Beneficiary

Answer 3

When contracting party intended benefit as a gift

Question 4

Incidental Beneficiary

Answer 4

Party who benefits unknowingly

Question 5

Assignment

Answer 5

Transferring contract rights

Question 6

Delegation

Answer 6

Transferring contract duties

Question 7

Personal Services

Answer 7

Any service that must be performed by a promisor

Question 8

Statute of Limitations

Answer 8

Limits the time within which an injured party may file suit

Question 9

Three causes of impossibility

Answer 9

Destruction of subject matter, death of promisor in contract, illegality

Question 10

Expectation Interest

Answer 10

What party reasonably thought they would gain from the contract

Question 11

Restitution Interest

Answer 11

Benefit party reasonably thought they should have recieved

Question 11

Reliance Interest

Answer 11

Injured party reasonably thought they should receive compensation

Question 12

Equitable Interest

Answer 12

Forcing one party to stop doing something or transfer property

Question 13

Compensatory Damages

Answer 13

Flow directly from the contract

Question 14

Consequential Damages

Answer 14

Result from unique circumstances of the plaintiff

Question 15

Rescission

Answer 15

Undoing of a contract

Question 16

Injunction

Answer 16

Court order to do something or refrain from doing something

Question 17

Mitigate

Answer 17

Keep damages as low as possible