Chapter 14 Business Law

24 terms by ekr2

Create a new folder

Advertisement Upgrade to remove ads

breach of contract

a contracting partys failure to perform an absolute duty owed under a contract

complete performance (strict performance)

a situation in which a party to a contract renders performance exactly as required by the contract complete performance discharges that partys obligations under the contract

tender of performance

an unconditional and absolute offer by a contracting party to perform his or her obligations under a contract also known as tender

substantial performance

performance by a contracting party that deviates only slightly from complete performance

minor breach

a breach that occurs when a party renders substantial performance of his or her contractual duties

material breach

a breach that occurs when a party renders inferior performance of his or her contractual duties

inferior performance

a situation in which a party fails to perform express or implied contractual obligations and impairs or destroys the essence of the contract

anticipatory breach

a breach that occurs when one contracting party informs the other that he or she will not perform his or her contractual duties when due

monetary damages

an award of money

compensatory damages

an award of money inteded to compensate a nonbreaching party for the loss of the bargain, compensatory damages place the nonbreaching party in the same position as if the contract had been fully performed by restoring the "benefit of the bargain"

consequential damages (special damges)

foreseeable damages tha tarise from circumstances outside a contract. to be liable for these damages, the breachingg party must know or have reason to know that the breach will cause special damages to the other party

nominal damages

damages awarded when the nonbreaching party sues the breaching party even though no financial loss has resulted from the breach. nominal damages are usually $1 or some other small amount

mitigation of damages

a nonbreaching partys legal duty to avoid or reduce damages caused by a breach of contract

write of attachement

an order of the court that enables a government officer to seize property of the breaching party and sell it at auction to satisfy a judgment

write of garnishment

an order of court that orders that wages, bank accounts, or toher property of the breaching party held by third persons be paid to the non breaching party to satisfy a judgment

liquidated damges

damages that parties to a contract agree in advance should be paid if the contract is breached

rescission

an action to rescid (undo) a contract. rescission is availiable if there has been a material breach of contract, fraud, duress, undue influence, or mistake

restitution

the return of goods or property received from the other party to rescind a contract. if the actual goods or property are not availiable, a cash equivalent must be made

equitable remedy

a remedy that is available if there has been a breach of contract that cannot be adequatley compensated through a legal remedy or to prevent unjust enrichment

specific performance

a remedy that orders the breaching party to perform the acts promised in the contract. specific performance is usually awarded in cases in which the subject matter is unique, such as in contracts involving land, heirlooms, and paintings.

reformation

an equitable doctince that permits the ourt to rewrite a contract to express the parties true intentions

injunction

a court order that prohibits a person from doing a certain act

intentional interference with contractual relations

a tort that arises when a third party induces a contracting party to breach the contract with another party

covenant of good faith and fair dealing

an impled covenant under which the parties to a contract not only are held to the express terms of the contract but are also required to act in "good faith" and deal fairly in all respects in obtaining the objective of the contract

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set