| Term | Definition |
|---|
| mistake, misrepresentation, duress and undue influence, unconscionable transaction, privity of contract, assignment | factors affecting contractual relationship |
| error that destroys consensus, shared mistake-fundamental mistake about subject matter of contract: common to both parties and courts must correct obvious error -misunderstanding: questions existence of consensus: different interpretations | mistake |
| one sided mistake: fundamental mistake (usually when one party misleads the other, mistaken identificaiton) non est factum(it is not my act): mistake goes to the nature of the document, usually involves misrepresentation... rules of interpretation apply with simple misunderstanding | mistake 2 |
| reasonable person test, literal or liberal meanings imposed on written terms, courts or statutes may imply terms, outside evidence will not change clear wording | rules of interpretation |
| false statement of fact that persuades someone to enter into a contract: the statement must be an allegation of fact, silence is not misrepresentation when there is no duty to disclose the statement be incorrect and untrue and must have been the inducement that led to the contract | misrepresentation |
| the peron making it honestly believes it to be true: remedies are limited to rescission rescission puts both parties back into original positions | innocent misrepresentation |
| rescission is not available when contract is affirmed, when contract is imposible to restore, where a third party is involved | innocent misrepresentation 2 |
| victim of intentional misrepresentaiton can sue for damages in addition to rescission... an innocent misrepresentation becomes fradulent if not corrected when discovered...... remedies: rescission, damages, contract may be considered void | fradulent misrepresentation |
| duress: threat of violence makes contract voidable.... undue influence: which reduces free will to bargain-voidable contract, presumed in certain relationships........ unconscionable transactions: where a person takes advantage of another's vulnerability-voidable | duress and undue influence |
| contract can only affect parties to it except when original part can enforce contract when benefits bestowed on outsider, novation: a new party is substitued for an original party to the contract, contractual rights run with land, contracts created through agents | privity of contract |
| the benefits (chose in action) received under a contract can be assigned or transferred to another qualifications for statutory assignment: absolute and unconditional, must be in writing and complete, must give proper notice....... some things cannot be assigned: the right to sue ( champerty), when contract invovles the personal performance of a particular skill......... assignment: assignee is in the same position as original contractor: subsequent claims do not affect assignee... contractual rights assigned automatically in case of death or bankrupcy | assignment |
| principal methods of discharging a contract: performance, agreement, frustration, breach | the end of the contractual relationship |
| contractual obligations are discharged when each party satisfactorily performs its part of the bargain: substantial performance, tender of performance, independent obligations | performance |
| substantial performance: all or most of contractual obligations are fulfilled, contract discharged, some contracts must be performed exactly | performance 2 |
| when one party is ready, willing, and able, and attempts to perform, but performance is refused by other party: may be vicarious, person who attempted performance may sue for other damages...... payment must be in legal tender... delivery at reasonable time and place | tender of performance |
| a contract is breached when there is: improper or incomplete performance, or refusal to perform....... conditions: terms essential to substantial performance: where breached, victim relieved of obligations.. warranties-minor terms of contract: where breached, performance still required | breach |
| the failures to perform that are so basic they leave one party without any benefit in the contract: courts will not give effect to some exemption clauses unless specific...... repudiation(anticipatory breach): one party indicates that they do not intend to follow through with their end of the deal, can be expressd or implied from conduct, victim may choose to end or insist on performance-bound by choice | fundamental breach |
| contracts can be modified or ended by agreemtn, bilateral or unilateral discharge: all rules of contract formation apply....... accord and satisfaction: parties agree to end contract based on some other consideration | discharge by agreement |
| contract can specific conditions under which obligations begin or end.... conditions precedent: contract is binding only if some pre-existing condition is met.... conditions subsequent: the contract ends when some event or condition takes place | contractual terms |
| outside, unforeseen event which: make performance impossible, changes the nature of the contract...... statutory modifications: let the loss fall where it lies, allows courts to split deposit to pay costs incurred | frustration |
| when one party is responsible for an act that frustrates a contract, it is treated as a breach.... if the obligations of the contract can be fulfilled in some other way, performance is required | self induced frustration |
| rescission- returning parties to original position...... rectification: court corrects wording of a document. provided in contract: liquidated damages, deposit, down payment, victim must mitigate losses | remedies for breach of contract |
| court tries to put victim of breach in the position they would have been in if the contract had been properly performed.. limitations: remoteness: breaching party must compensate for damages likely to be the result of the breach.. mitigation: victims must make an effort to keep their losses as low as possible | damages |
| specific performance: an order to go through with the deal.... injunction: an order to stop breaching the agreement | equitable remedies |
| accounting: court may order breaching party to disclose and pay profits..... quantum merit: court orders payment for part performance | equitable remedies 2 |
Combine with other sets
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