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What are the three major categories of performance?

Conditions, discharge, breach


If a contract has been formed, has consideration, and there are no defenses to formation, what should be discussed next on an essay?

- were there express conditions? Were they for filled or excused
- was there an implied condition?
- did a party perform substantially?
- was the contract divisible, and if so was it partly performed?
- did one-party materially breached?
- did a party repudiate? Was it anticipatory?
- could there have been assurances of performance?
- was failure to perform excused by impossibility or frustration?
- was contract discharged by rescission, release, accord/satisfaction, acceptance of full payment check?


What is the good faith obligation to perform?

It's party has a duty of good faith and fair dealing in performance and contract and enforcement


What is the UCC good faith obligation?

Honesty in fact, and merchants must also observe reasonable commercial standards of fair dealing in the trade


What is bad faith?

Conduct that violates community standards of decency, fairness, or reasonableness


What are some examples of bad faith?

Lack of diligence, willfully giving in perfect performance, abuse of power to specify terms, failing to cooperate, etc.


What is the leading theory on good faith called excluder theory?

Good faith has no meaning on its own, it just means the absence of bad faith


Once a condition is either excused or satisfied, then the duties become what?

Mature and absolute


What is a condition?

An act or event (other than lapse of time) that must occur before a duty to perform the contractual promise arises or that discharges a duty of performance that has already risen


Why is passage of time not a condition?

Because it is certain to occur


What effect do conditions have on performance?

They hold it up and contact doesn't have to be performed unless they occur


If a condition is not met, it triggers what?

Either a duty to perform, or relieves a duty to perform


What is classic language to show a condition?



What is a condition subsequent?

A condition that takes away a party's duty to perform when the specified event occurs


Failure of a condition can result in what?



Is non-for filament of the condition considered a breach?

No, it is a forfeiture, which doesn't result in liability


What is an express condition?

Language of the contract expressly states the condition and specifically uses words like "if", "Subject to", "on condition that", "provided that".


What has to happen with a condition before the duty arises?

It must be fully and literally complied with


What are The two types of express conditions?

Implied and constructive


What is an implied condition?

Terms of contract clearly indicate parties intended some event would occur before a duty would arise, even though no express language says it


Example of an implied condition?

"Dependent on financing" means an implied promise to use reasonable efforts to get the loan


What is a constructive condition?

Judge creates a condition because fairness requires it be included to avoid unjust results


When are constructive condition used?

If parties omitted a term that is essential, so the courts will supply A reasonable one


Must constructive conditions be fully complied with?

No, they just have to substantially occur, and minor discrepancies aren't a problem


What is the reason that courts interpret doubtful language as a promise instead of a condition?

Because courts abhor forfeitures, which is the result of the failure of a condition


How do you know if something is a condition or a promise?

- if it says "provided that" or "but if", it is a condition. If a state of affairs has to exist before some other part of the agreement
- if contact is specified to involve a state of affairs that one party tries to bring about, that is a promise


What is the difference for consequences between a promise and A condition failing?

- promise: breach of contract
- addition: duty is discharged (forfeiture)


What language is used for conditions versus promises?

- condition: provided that, if, when
- promise: promise, Agree