Chapter 16-Vocab Flashcards
(16 cards)
Rescind
To terminate a contract
Discharge
A party is discharged when she has no more duties under the contract
Condition
An event that must occur before a party becomes obligated under a contract
Condition precedent
A condition where the event must occur BEFORE a duty arises. plaintiff must prove the condition happened
Condition subsequent
A condition where the event must occur AFTER the particular duty arises. Defendant must prove the condition occurred
Strict performance
Requires one party to perform its obligations precisely, with no deviation from the contract terms
Substantial performance
Occurs when one party fulfills enough of its contract obligations to warrant payment
Personal satisfaction contract
In which the Promisee makes a personal subjective evaluation of the promisor’s performance
Time of the essence clause
Provisions that generally make contract dates strictly enforceable
Material breach
One that substantially harms the innocent party and for which it would be hard to compensate without discharging the contract
Anticipatory breach
Making it unmistakably clear that it will not honor the contract
Statute of limitations
A statutory time limit within which an injured party must file suit
True impossibility
Means that something has happened making it utterly impossible to do what the promisor said he would do
Personal services contracts
Permit the promisee to make a subjective evaluation of the promisor’s performance
Commercial impracticability
Meaning some event has occurred that neither party anticipated and fulfilling the contract would now be extraordinarily difficult and unfair to one party
Frustration of purpose
Meaning some event has occurred that neither party anticipated and the contract now has no value for one party
