Flashcards in Page 39 Deck (13):
Are insured people bound to know the contents of a boilerplate insurance contract?
No, and only objectively reasonable expectations of the insured will be honored
If a party entitled to a condition fails to cooperate in the occurrence of the condition, what happens?
The condition is excused and the party must perform anyway
If you agree to buy a house if you can get financing, but you don't use good-faith effort to do that, then what happens?
The condition is excused by your failure to cooperate and you now have an obligation to buy the house regardless of loan approval
If a person acts in bad faith to prevent performance of an event, what happens?
The condition is excused and the person must perform anyway
If Plaintiff isn't able to perform a condition precedent to defendant's obligation because defendant prevented him by wrongful conduct, what happens?
Plaintiff can recover
If a person terminates for a malicious reason, what happens?
He is liable
What is needed to satisfy a condition?
Substantial satisfaction, it needed to be perfect for the other party to owe (coho pipe case)
What is the rule for single delivery of goods under the UCC?
Must have a perfect tender: where complete, perfect performance of condition must occur, And if it doesn't, the buyer can reject tender and doesn't have to pay for it
What are the two views about the promise to pay "when able"?
- majority says it's a condition
- minority says it is a promise that payment will be made in a reasonable time
What is discharge of a condition
When an obligation becomes an absolute duty, The promisor is still not liable if a supervening event or change of circumstances comes after formation which discharges the duty to perform
How does a condition get discharged for impossibility?
When an event happens after formation that makes it objectively impossible to perform the promise, that excuses the condition (The supervening event must be unforeseen, and no party can have assumed the risk)
What are some things that could cause impossibility?
Subject matter/method of performance has deteriorated, been destroyed, is no longer available, method of delivery/payment failed, a law now prevents performance, death/illness, etc.