Chapter 17: Performance, Breach, And Discharge

Question 1

Condition

Answer 1

And uncertain event that affects the duty of performance

Question 2

Express condition

Answer 2

Performance explicitly made contingent on the happening or not happening of a stated event

Question 3

Satisfaction

Answer 3

Express condition making performance contingent upon one parties approval of the other’s performance.

Question 4

Subjective satisfaction

Answer 4

Approval based upon a party’s honestly held opinion

Question 5

Objective satisfaction

Answer 5

approval based upon whether
a reasonable person would be
satisfied

Question 6

Implied in fact condition

Answer 6

Contingency understood but not expressed by the parties

Question 7

Implied in law condition

Answer 7

Contingency that arises from operation of law

Question 8

Concurrent condition

Answer 8

Performance by the parties is to occur simultaneously

Question 9

Condition precedent

Answer 9

An event that must or must not occur before performance is due

Question 10

Condition subsequent

Answer 10

an event that terminates a

duty of performance

Question 11

Discharge

Answer 11

Termination of a contractual duty

Question 12

Performance

Answer 12

Fulfillment of a contractual obligation

Question 13

Tender

Answer 13

Offer of performance

Question 14

Breach

Answer 14

Wrongful failure to perform the terms of the contract

Question 15

Material breach

Answer 15

nonperformance that significantly impairs the aggrieved party’s rights under the
contract; discharges the injured party from any further duty under the contract

Question 16

Prevention of performance

Answer 16

one party’s substantial interference with or prevention of performance by the other constitutes a material breach
and discharges the other party to the contract

Question 17

Perfect tender rule

Answer 17

standard under the Uniform Commercial Code that performance must comply
strictly with contractual duties and that any deviation discharges the injured party

Question 18

Substantial performance

Answer 18

performance that is incomplete but does not defeat the purpose of the contract; does not discharge the injured party but entitles him to damages

Question 19

Anticipatory repudiation

Answer 19

breach of a contract before performance is due by a party announcing that he will not perform or by committing an act that makes it impossible to perform; it is treated as a breach, allowing the nonrepudiating party to bring suit immediately

Question 20

Unauthorized material alteration of written contract

Answer 20

an unauthorized and fraudulent alteration or change of a material term of a written
contract by a party to the contract discharges the entire contract

Question 21

Mutual rescission

Answer 21

Agreement of the parties to terminate their contractual duties

Question 22

Substituted contract

Answer 22

A new contract excepted in satisfaction of the parties’ duties under the original contract.

Question 23

Accord and satisfaction

Answer 23

substituted performance (accord) and the discharge of the prior contractual obligation by performance of the new duty (satisfaction)

Question 24

Noviation

Answer 24

Substituted contract involving a new third-party promisor or promisee

Question 25

Subjective impossibility

Answer 25

a particular promisor- but not all promisors--is unable to perform; does not discharge the promisor

Question 26

Objective impossibility

Answer 26

No promisor is able to perform; generally discharges the promisor

Question 27

Subsequent illegality

Answer 27

if performance becomes illegal or impractical as a result of a change in the law, the duty of performance is discharged

Question 28

Frustration of purpose

Answer 28

if a party's principal purpose is substantially frustrated without his fault by the occurrence of an event whose nonoccurrence was a basic assumption on which the contract was made, the party's remaining duties to render performance are discharged, unless the party has assumed the risk

Question 29

Commercial impracticality

Answer 29

where performance can be accomplished only under unforeseen and unjust hardship, the contract is discharged under the Code and the Restatement

Question 30

Availability of restitution

Answer 30

A person who renders more advanced performance under contract that is discharged from possibility, subsequent illegality, frustration, or impracticability is entitled to restitution to prevent unjust enrichment of the other party.

Question 31

Bankruptcy

Answer 31

discharge available to a debtor who obtains an order of discharge by the bankruptcy court

Question 32

Statute of limitations

Answer 32

after the statute of limitations | has run, the debt is not discharged, but the creditor cannot maintain an action against the debtor