Business Law Ch 20

In a contract, terms under which each party’s performance is conditioned on the performance of the other; occur only when the parties are required to perform for each other simultaneously.

A contract that becomes enforceable only on the happening or termination of a specified condition.

In a contract, an event that must occur in order for a party’s duty to arise.

In a contract, a future event that terminates the obligations of the parties when it occurs.

Contract performance that occurs when all aspects of the parties’ duties under the contract are carried out perfectly.

Money awarded to a plaintiff as reimbursement for her or his losses; based on the amount of actual damage or harm to property, lost wages or profits, pain and suffering, medical expenses, disability, etc.

In a contract, foreseeable damages that result from special facts and circumstances arising outside the contract itself. The damages must be within the contemplation of the parties at the time the breach occurs. Also called special damages.

A condition specifically and explicitly stated in a contract and usually preceded by words such as conditioned on, if, provided that, or when.

A condition that is not specifically and explicitly stated but is inferred from the nature and language of the contract.

A court order either forcing a party to do something or prohibiting a party from doing something.

Damages specified as a term of the contract before a breach of contract occurs.

A substantial breach of a significant term or terms of a contract that excuses the nonbreaching party from further performance under the contract and gives the nonbreaching party the right to recover damages.

Money claimed by or ordered paid to a party to compensate for injury or loss caused by the wrong of the opposite party.

Monetary damages awarded to a plaintiff in a very small amount, typically $1 to $5, to signify that the plaintiff has been wronged by the defendant even though the plaintiff suffered no compensable harm.

In a contract, the substitution of a third party for one of the original parties. The duties remain the same under the contract, but one original party is discharged and the third party takes that original party’s place.

In a contract, a situation in which it is in fact not possible to lawfully carry out one’s contractual obligations.

Compensation awarded to a plaintiff that goes beyond reimbursement for actual losses and is imposed to punish the defendant and deter such conduct in the future. Also called exemplary damages.

The termination of a contract.

The return of any property given up under a contract.

See consequential damages.

An order of the court requiring that a nonbreaching party fulfill the terms of the contract.

Contract performance that occurs when nearly all the terms of the agreement have been met, there has been an honest effort to complete all the terms, and there has been no willful departure from the terms of the agreement.

In a contract, a situation in which it would be very difficult for a party to carry out his or her contractual obligations.

An offer by a contracting party to perform, along with being ready, willing, and able to perform, a duty outlined in the contract.