Exam 3 Chapter 13

Business Law 255 with Jenkins at Ohio University

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By: Megan McDonald
Created: 2011-03-01
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condition

event the occurrence or nonoccurrence of which affects a party's duty to tender its performance

condition precedent

condition which must be satisfied in order to make a duty to perform ripen into an absolute obligation

condition subsequent

condition which will terminate one party's duty to perform to the other

concurrent conditions

conditions which must be satisfied simultaneously so that each party's duty to perform ripens into an absolute duty

essential element

the condition must be beyond the control of the party whose performance is so conditioned

express conditions

specifically set forth in the contract; identified as such in the contract and must be strictly performed before the other party's duty to perform arises

performance to the satisfaction of another

performance of a party must be to the satisfaction of the other party or one who represents the other party

condition precedent

personal satisfaction is a ___________ to the duty to pay for the good or service

personel

performance is to the party's (good faith) satisfaction

not personal

the performance is to satisfaction of a reasonable person

constructive or implied-in-law conditions

generally not expressed in the contract, but is read into the contract to serve justice; in bilateral contract, absent express language regarding timing of performance, each party is subject to an implied condition to tender concurrent performance to each other

tender of performance

tender means one is ready willing and able to perform

important advantages for debtor where creditor refuses the tender

interest may no longer accrue; if creditor sues to recover no more than original debt, creditor must pay court costs; if debt was secured by security interest on debtor's property, it's extinguished

substantial performance

implied conditions may be satisfied by ________________; damages may be awarded for incomplete performance

excuses for nonperformance

hindrance, prevention or noncooperation; waiver; impossibility; frustration of purpose; and commercial impracticability

hindrance

one party takes actions which increase the difficulty of another's performance of a promise; must be wrongful: no party reasonably contemplate or assumed the risk that occurred

prevention

wrongful prevention by one party of another's performance excuses nonperformance by the other party

noncooperation

one party fails to cooperate with the other in good faith

waiver

passing on an opportunity to enforce a legal right, losing that right as a result; requires a promise to forgo a benefit of a condition; or continuing under a contract after a breach by the other party

supported by consideration or the promisee has substantially changed position in reliance on the waiver

waiver may be retracted unless__________

impossibility of performance

party's performance must be physically and objectively impossible

specific circumstances

performance becomes illegal; death or incapacitating illness; continued existence of certain subject matter; lack of an essential element

commercial frustration

excuses performance when essential purpose and value of contract have been frustrated

commercial impracticability

similar to commercial frustration; the Code may authorize substitute performance; failure to deliver goods may be excused by occurrence of unforeseen supervening circumstances not contemplated by the parties

discharge

occurs when a party completes its performance or is prevented from continuing to perform

complete performance, substantial performance, performance to the satisfaction or another; material breach of the contract, or by anticipatory repudiation

discharge may be by __________

discharge by performance

a party tenders performance which meets the requirements of the contract in all respects --- failure to match the requirements of the contractual provisions in any particular may be considered a breach

substantial performance

performance which doesn't vary greatly from that anticipated in the contract and confers the same benefits as promised in the contract

material breach of contract

occurs when one party's performance is defective and is not substantial -- the non-breaching party's duty to perform may be suspended

anticipatory repudiation

one party, before its performance is due, informs the other party it will not tender its performance when due

discharge by rescission

parties agree to return to their positions before formation of the contract

contract alteration

if one party unilaterally alters a written agreement, an unknowing innocent party may be discharged

statute of limitations

actions on contracts barred if not commenced within the statutory period

bankruptcy

discharge bars further action by creditors

impossibility of performance

objective and/or temporary

novation

the parties substitute a third party for the contract

accord and satisfaction

the parties agree to settle a disputed claim for a lesser amount and the debtor pays the claim

About this deck

By: Megan McDonald
Created: 2011-03-01
Size: 37 flashcards
Views: 39

About StudyBlue

“I have been getting MUCH better grades on all my tests for school. Flash cards, notes, and quizzes are great on here. Thanks!”
Kathy