Chaper 4: Contracts in Action

Business Law Bla 201 with Halsey at West Chester University of Pennsylvania

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By: Irene Bremner
Created: 2012-02-13
Size: 22 flashcards
Views: 2

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Clauses

Provisions of a contract that expressly state the terms or conditions of the agreement

Express Condition

A condition that parties have agreed upon and that's explicitly stated in the contract.

Constructive Condition

A condition that is not agreed upon by the parties mentioned in the contract but rather is supplied by the court in the interest of fairness

Condition Precedent

A condition that must be met before a party's promise under a contract becomes absolute.

General Rules on Contract Construction

1. Comm's are viewed as a whole, inconsistencies are discarded
2. Interpreted according to business custom and usage. Standard for industry.
3. Ordinary meanings of words
4. Incosistency of between provisions. Handwritten prevail over typed provisions

Parol Evidence Rule

Written argreement purporting is the full and final expression of an agreement that may not be altered by evidence that adds to/alters/varies from the agreement made prior to the writing.

Partial Integration

Not a full expression of an agreement

Full Integration

Full purport of agreement. Most contracts state this.

Conditions where oral testimony will be permitted:

1. Failure of consideration
2. Fraud, duress, mistake
3. Not performable within 1 yr.
4. Ambiguities deserving of explanation

Statute of Frauds

Laws and UCC provisions that state the contracts that must be in writing.
1. Real Estate
2. Marriage
3. Not performable within 1 year
4. Co-signing
5. Over $500
6. Decedent's debts

Discharge of Obligation (8) Needn't perform

1. Excuse of Conditions (timing element)
2. Performance
3. Breach of contract
4. Agreement of the parties
5. Impossibility of performance
6. Supervening illegality
7. Death or destruction of subject matters
8. Frustration of purpose

Mutual Recession

Agreement of both parties to relieve one another from the obligation to perform.

Accord and Satisfaction

Agreement of one party to accept full payment of the other of a sum less than the full sum of a debt.

Novation

Substituting someone else for a party to a contract. you can't paint the house but send friend over

Frustration of Performance

For example.. something is postponed so you don't pay. Technically could have performed but didn't due to change in circumstance.

3rd Party Beneficiary

2 parties agree that the 3rd party will get something.

Intended Beneficiary

Someone expressly mentioned in a contract. Creditor & donee, something owed & gift or not owed

Incidental Beneficiary

Not mentioned under the contract. Doesn't have rights

Assignment

Transfer of a party's rights under a contract to someone else.

Delegation

A party's appointment of another person to fulfill the duties require of the party under the contract. The person helping has no rights.

Legal Remedies (4)

Compensatory damages
Punitive damages
Consequential damages
Liquidated damages.

Equitable (non-monetary) Remedies (5)

Injunctions
Specific performance
Recission and restitution
Reformation
Quasi-Contract

About this deck

By: Irene Bremner
Created: 2012-02-13
Size: 22 flashcards
Views: 2

About StudyBlue

“I have used this website for three exams, and I see a huge difference in my test results.”
Naj