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24 terms

Chapter 14 Business Law

STUDY
PLAY
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