LWC Chapt 17 Flashcards.txt

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LWC Chapt 17 Flashcards.txt
2012-09-24 16:54:04

LWC1 Chapt 17
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  1. What are the 5 reasons for Discharge when there is a breach of contract?
    • Material Breach
    • Minor breach
    • Anticipatory Breach
    • Mutual rescission
    • Accord and satisfaction
  2. Material Breach
    occurs when on party doesn't fulfill the essential terms of the contract.
  3. Minor Breach
    occurs when the essential terms of the contract are fulfilled but one of the parties was inconvenienced rather than suffering loss or damage
  4. Anticipatory Breach
    occurs if one of the parties of the contract states, before the breach occurs, that it will not be able to fulfill its obligation. can also occur when actions imply that they wont be able to fulfill obligations
  5. Mutual rescission
    takes the form of a contract(has 5 elements of a contract) ending the contract.
  6. Accord and satisfaction
    occur when both parties agree to except a performance of the contract.different from that originally agreed to.
  7. What conditions constitute a discharge?
    • 1 - Parties have met all duties under the contract, Full Performance
    • 2 - Parties agree to discharge
  8. Describe types of acceptable performance of a contract
    • Strict performance
    • Substantial performance
  9. Strict performance
    requires one party to fulfill its duties perfectly
  10. Substantial performance
    performs contract duties well enough to be entitled to full contract price minus any defects.
  11. Personal satisfaction contract
    interpreted under an objective standard, requiring reasonable grounds for dissatisfaction, unless the work involves personal judgement and the parties intended a subjective standard.
  12. Time is of the essence clauses require strict enforcement of contract deadlines
  13. What constitutes a breach of contract
    when party fails to perform a duty w/o a valid excuse
  14. Impossibility
    One party seeks discharge w/o fulfilling his contract obligation
  15. True Impossibility
    Something happens making it impossible to do what the promisor said he would.
  16. name the 3 True Impossibility causes
    • 1 - Destruction of subject matter
    • 2 - Death of promisor in personal service matter that cannot be transferred to someone else
    • 3 - illegality
  17. Defenses that discharge (court may discharge a party that has not performed)
    • Commercial Impracticability-some unexpected event has made it extraordinarily difficult and unfair for one party to perform its obligation
    • Condition precedent-some event had to occur b4 obligated to pay.
  18. Condition
    event that must occur before a party becomes obligated. may be stated expressly or implied, and no formal language is necessary to create one
  19. 3 types of conditions
    • 1 - Condition precedent- some event must occur b4 obligated to pay.
    • 2 - Condition subsequent - must occur after duty arises
    • 3 - Concurrent conditions - both parties have a duty to perform simultaneously.
  20. Commercial impracticability
    some event occurs that neither party anticipated and performing contract would be difficult and unfair to one party
  21. Frustration of purpose
    may occur when an unexpected event renders a contract completely useless to one party.