Law of contracts final

Card Set Information

Law of contracts final
2014-05-05 05:17:49
Chapters 15 18

Chapters 15-18
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  1. Collateral promise
    A promise made by a third party to assume the debts or obligations of a primary party to a contract if that party does not perform.
  2. Prenuptial agreements
    Agreements made before marriage that define each partner's ownership rights in the other partner's property.
  3. Parol evidence rule
    A substantive rule of contracts under which a court will not receive into evidence the parties' prior negotiations, prior agreements, or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties' written contract.
  4. Integrated contract
    A written contract that constitutes the final expression of the parties' agreement. If a contract is integrated, evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible.
  5. Assignment
    The transfer of contractual rights to a third party
  6. Delegation
    The transfer of contractual duties to a third party.
  7. Assignor
    The party assigning the rights to a third party.
  8. Assignee
    The party receiving rights.
  9. Obligee
    The person to whom a duty, or obligation, is owed.
  10. Obligor
    The person who is obligated to perform the duty.
  11. Alienation
    In real property law, the voluntary transfer of property from one person to another.
  12. Third party beneficiary
    One for whose benefit a promise is made in a contract but who is not a party to the contract.
  13. Intended beneficiary
    A third party for whose benefit a contract is formed.
  14. Incidental beneficiary
    A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed.
  15. Condition
    A possible future event, the occurrence or nonoccourrence of which will trigger the performance of a legal obligation or terminate an existing obligation under a contract.
  16. Condition precedent
    A condition that must be fulfilled before a party's performance.
  17. Condition subsequent
    When a condition operates to terminate a party's absolute duty to perform.
  18. Concurrent conditions
    Conditions in a contract that must occur or be performed at the same time;they are mutually dependent.No obligations arise until these conditions are simultaneuosly performed.
  19. Tender
    An unconditional offer to perform by a person who is ready, willing, and able to do so.
  20. Breach of contract
    The nonperformance of a contractual duty.
  21. Anticipatory repudiation
    An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.
  22. Mutual recission
    An agreement between the parties to cancel their contract, releasing the parties from further obligations under the contract.
  23. Novation
    When both of the parties to a contract agree to substitute a third party for one of the original parties.
  24. Discharge in bankruptcy
    The release of a debtor from all debts that are provable, except those specifically excepted from discharge by statute.
  25. Impossibility of performance
    A doctrine under which a party to a contract is relieved of his or her duty to perform when performance becomes impossible or totally impracticable.
  26. Commercial impracticability
    A doctrine under which a seller may be excused from performing a contract when (1) A contingency occurs,(2) the contingency's occurence makes performance impracticable, and (3) the nonoccurence of the contingency was a basic assumption on which the contract was made.
  27. Frustration of purpose
    A court-created doctrine under which a party to a contract will be relieved of his or her duty to perform when the objective purpose for performance no longer exists(due to reasons beyond the party's control).
  28. Incidental damages
    Expenses that are caused directly by a breach of contract.
  29. Consequential damages
    Special damages that compensate for a loss that is not direct or immediate.
  30. Nominal damages
    A small monetary award.
  31. Mitigation of damages
    A rule requiring a plaintiff to have done whatever was reasonable to minimize the damages caused by the defendant.
  32. Penalty
    Specifies a certain amount to be paid in the event of  default or breach of contract and is designed to penalize the breaching party.
  33. Restitution
    An equitable remedy under which a person is restored to his or her original position prior to loss of injury, or placed in the position he or she would have been in had the breach not occurred.
  34. Specific performance
    An equitable remedy requiring the breaching party to perform as promised under the contract; usually granted only when money damages would be an inadequate remedy and the subject matter of the contract is unique.
  35. Reformation
    An equitable remedy used when the parties have imperfectly expressed their agreement in writing.
  36. Waiver
    An intentional, knowing relinquishment of a legal right.
  37. Types of contracts that must be in writing.(5)
    • contracts involving interests in land
    • Contracts that cannot by their terms be performed within one year from the day after the date of formation
    • Collateral, or secondary contracts such as promises to answer for the debt or duty to another and promises by the administrator or executor of an estate to pay a debt of the estate personally
    • promises made in consideration of marriage
    • Under the UCC code, contracts for the sale of goods priced at 500 or more.
  38. The main purpose rule
    If the secondary obligation to pay someone else's debt benefits the party or is used to forstall litigation a written contract is not necessary to be enforced.
  39. exceptions to the statute of frauds
    Partial performance,admissions, promissory estoppel,special exceptions under the ucc
  40. exceptions to the parole evidence rule(7)
    • contracts subsequently modified
    • voidable or void contracts
    • contracts containing ambiguous terms
    • incomplete contracts
    • prior dealing, course of performance, or usage of trade.
    • contracts subject to an orally agreed on condition precedent
    • Contracts with an obvious clerical error that clearly would not represent the agreement of the parties.
  41. Rights that cannot be assigned(4)
    • When a statute prohibits assignment
    • When a contract is personal in nature
    • When an assignment will significantly change the risk or duties of an obligor
    • when the contract prohibits assignment
  42. requirements of a novation(4)
    • previous valid obligation
    • agreement by all parties to a new contract
    • extinguishing of an old obligation
    • a contract that is valid
  43. Four categories of damages
    • compensatory
    • consequential
    • punitive
    • nominal