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Flashcards in Page 35 Deck (20):
1

What is a simple or true condition?

An event outside the control of either party but what must happen to make promises enforceable ie: I will sell you my laptop if it rains today

2

What is a covenant?

A promise that depends on the cooperation of the party

3

If a party has some control over an event occurring, that makes it what two things?

Both a condition and a covenant

4

If reasonable good faith efforts are not used, what happens to the condition?

It goes away and causes a breach by that party

5

If you are having a portrait painted to your satisfaction, what are both parties obligated to do?

Act in good faith, the painter must try his best, and the buyer must also

6

If parties don't include an important term, and the court, in the interest of justice, supplies it, once it is created it becomes what?

Full-fledged promise supplied through good faith and fair dealing

7

If an Omission is trivial and innocent, does it have to result in breach or forfeiture?

No, it can just be atoned for by allowing the resulting damage based on it's purpose, the cruelty of adhering to it etc.

8

If the parties don't state the order of performance, constructive conditions will fill those gaps based on what?

Commonsense of the average person

9

If one party's performance precedes the other's, the first is called what?

It is a constructive condition to the second

10

"I will sell you my watch and deliver on Tuesday, and you will pay on Friday". Does that have any conditions?

It doesn't look like it, but since performance precedes the duty, there is a constructive condition to the duty to pay. If Delivery doesn't happen, there is no duty to pay. If delivery does happen, the duty is mature, so you must pay or be in breach

11

What is the rule for when a party performs over an extended period of time and the other party performs in a moment?

The performance that takes time must happen first, so substantial performance is implied condition to duty to pay

12

If periodic payments have been agreed on, when should payment happen?

Performance is a constructive condition precedent to the first payment, and that payment is a constructive condition precedent to the next stage of work

13

What are the duties when there is simultaneous performances?

Each duty of performance is constructively conditioned on tender of the other (promisor shows readiness, willingness, and ability to perform conditioned on the other party's reciprocal tender)

14

If I say "I will sell you my car and you will pay for it" what should happen?

The car and the money will be tendered at the same time, and each performance is conditioned on the other. If the car isn't tendered, the money needn't be, and vice versa. If neither tenders anything, the conditions were not satisfied, so no breach. If one tender something, the other must too

15

What Must be the result of every condition?

Must be excused or satisfied so the performance can become performable

16

What is an excused condition?

Condition didn't take place, but plaintiff can recover on contract if he was ready, willing, and able to perform. Excuse conditions happen by waiver, breach, or forfeiture

17

What are the ways a condition can be excused by wrongful conduct?

Prevention/hindrance, termination of a business

18

If a party wrongfully prevents/hinders fulfillment of a condition, what happens to the condition?

It is excused, because a party can't take advantage of his own wrongful conduct to escape liability

19

If someone contracts to build a house, and promises to pay when a certificate of completion is given, and the owner bribes the certificate person not to give the certificate, what does that do to the condition?

Excuses it because of the wrongful conduct

20

If a contract is conditioned on the continued operation of the business, and the business closes down, what happens?

Depends on the type of contract:
- requirements/output: if seller had valid reasons for closing unrelated to the contract, it is allowed. Otherwise not
- agreement to share profits: the existence of profits is a condition to the obligation