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34 terms

Business Law Chapter 17

Performance and Discharge in Traditional and E-Contracts
STUDY
PLAY
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