Chapter 16. Flashcards
(23 cards)
Performance
Fulfillment of ones duty under a contract
Condition
Qualifications in a contractual agreement
Condition precedent
A condition in a contract that must be met before a party’s promise becomes absolute
Condition subsequent
Condition in a contract that, if it occurs, terminates a party’s absolute promise to perform
Concurrent condition
Conditions that are mutually dependent
Tender
Unconditional offer to perform by a person who is ready, willing and able
Complete performance
When a party’s performance is perfect
Substantial performance
A person who in good faith performs substantially all the terms of a contract against the other party under this doctrine
Requirements for substantial performance
- Good faith
- Performance must not vary greatly from what was promised in the contract
- Performance must create relatively the same benefits as those promised
Breach of contract
Nonperformance of a contractual duty
Material breach of contract
When performance is not at least substantial
Minor breach of contract
Nonbreaching party’s duty to perform may be suspended until breach is cured
Anticipatory repudiation
Action by a party indicating they will not perform a contractual obligation
Mutual rescission
When parties make another agreement that satisfy the requirements for a contract
Rescission
When parties cancel a contract
Novation
Substitutes a third party for one of the original party’s
Novation requirements
- Previous valid obligation
- Agreement by all parties to new contract
- Extinguishing of old contract
- New, valid contract
Accord and satisfaction
Parties agree to accept performance different from the performance originally promised
Statue of limitation
Limited time period during which a party can sue on a particular cause of action
Impossibility of performance
Discharge of a contract when performance becomes objectively impossible or totally impracticable by a party
3 situation for impossibility of performance
- When performing party dies
- When subject matter is destroyed
- Law change renders performance illegal
Commercial impracticability
Excuses the duty to perform when performance becomes more difficult or costly due to forces that are unforeseen
Frustration of purpose
When a party is relieved or performance due to the objective purpose not longer existing due to unforeseen factors
