Business Law Chapter 17

34 terms by cheerios17 

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Performance and Discharge in Traditional and E-Contracts

Condition

Possible future event

Condition Precedent

A condition that must be fulfilled before a party's performance can be required

Condition Subsequent

A condition operates to terminate a party's absolute promise to perform

Concurrent Conditions

Each party's performance is conditioned on the other party's performance or offer to perform

Tender

Unconditional offer to perform by a person who is ready, willing, and able to do so

Breach of Contract

Nonperformance of a contractual duty

Anticipatory Repudiation

Before either party to a contract has a duty to perform, one of the parties may refuse to carry out their contractual obligation

Mutual Recission

Both parties agree to rescind the contract

Complete Performance

Party performs exactly as agreed

Substantial Performance

A party who in good faith performs substantially all of the terms of a contract. Good faith is required.

Novation

Both parties to a contract agree to substitute a third party for one of the original parties

Lark enters into a contract to mine limestone in Milena's quarry, sell it, and share the profits on its sale with Milena. If the duties under this contract are discharged like those under most contracts, the duties will be

performed

Jane and Kelly want Lucy to replace Kelly as a party to their contract. They can best accomplish this by

a novation

Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments. Neil's performance is most likely

a material breach

Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments.With respect to Mutual's duties, Neil's performance most likely

discharges Mutual from the contract.

A contract is discharged when a change in the law renders the performance illegal.

True

Frisco agrees to lease an apartment from Gina for one day to see Harry, the president of the United States, deliver a speech in the street below. The speech is canceled ten days before its scheduled date. The contract

is discharged

Any breach allows the non breaching party to sue for damages.

true

A contract will be discharged if foreseeable circumstances make it impossible to attain the contract's purpose.

false

Express conditions are provided for by the parties' agreement.

true

Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bushels of apples.When the market price for apples exceeds the price in the contract with Hill & Dale, Evelyn decides not to deliver the apples. Evelyn's contract with Hill & Dale is

breached

Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his farm. Deephole is to keep the excavated gravel in payment. Clyde's neighbor Eden challenges the dig as an illegal gravel pit. A court orders a halt to the dig. Clyde's contract with Deephole is

Discharged

Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bushels of apples.Evelyn dies before the apples are delivered to Hill & Dale. Evelyn's contract with Hill & Dale is

not affected

Lake Port Services enters into a contract to load Max's Great Lakes barges with the cargo that Max designates. Lake Port's offer to perform, when Lake Port is ready, willing, able to do so, is

tender

Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company. Even-Bilt completely performs. Discount E-Sales is entitled to

nothing more

Jen agrees to buy Kev's Dirt Bike business on the express condition that Valley Credit Union approves the financing. This approval is

a condition precedent.

Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bushels of apples.When bad weather destroys Eve's Garden's apple crop, the obligation to deliver apples to Hill & Dale is

discharged

Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bushels of apples.A strike delays delivery of the apples by ten days. Evelyn's contract with Hill & Dale is

suspended

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m. and 6 a.m. nightly for six months. At the end of the term, if there has been no vandalism or theft in the Park, Safe-T's performance will have been

complete

Real Cheap Painters, Inc., agrees to paint Quint's house, using a particular brand of "discount" paint. Real Cheap completes the job but uses a different brand of discounted paint. This is most likely

substantial performance

An event must be certain to occur to constitute a contractual condition.

false

A party's obligations under a contract may be excused if, due to an unforeseen circumstance, the party's benefit will be reduced.

False

Quito contracts with Rewind Graphix, Inc., to pay $5,000 for its work on the animated film "Song." After Rewind performs, they sign an accord, in which Quito promises to pay $4,000 within ten days instead of $5,000 later. But Quito does not pay. Rewind can sue Quito under

the accord or the original obligation.

Any breach excuses the nonbreaching party's duty to perform.

False

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