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29 terms

BUS-185 Business Law I, Chapter 15 Discharge and Remedies

Business Law w/UCC Applications
STUDY
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Abandonment of contractual obligations
The situation that exists when a party to a contract stops performance once it has begun. (p. 298)
Actual damages
A sum of money equal to the real financial loss suffered by an injured party. Also called compensatory damages. (p. 300)
Anticipatory breach
A breach that occurs when a party to a contract either expresses or clearly implies an intention not to perform the contract even before being required to act. Also called constructive breach. (p. 298)
Commercial impracticability
A doctrine under which the courts may excuse the performance of one party to a contract because an unforeseen and very severe hardship has arisen that would place an enormous amount of hardship on that party. (p. 297)
Compensatory damages
A sum of money equal to the real financial loss suffered by an injured party. Also called actual damages. (p. 300)
Complete performance
In contract law, the situation that exists when both parties to a contract have fully accomplished every term, condition, and promise to which they agreed. (p. 292)
Condition concurrent
A condition in a contract that requires both parties to perform at the same time. (p. 293)
Condition precedent
In contract law, an act or promise that must take place or be fulfilled before the other party is obligated to perform his or her part of the agreement. (p.293)
Condition subsequent
A condition in a contract in which the parties agree that the contract will be terminated depending on a prescribed event occurring or not occurring. (p.293)
consequential damages
Losses that do not flow directly and immediately from an act but only from some of the consequences or results of the act. (p. 300)
Frustration-of-purpose doctrine
In contract law, the doctrine that releases a party from a contractual obligation when performing the obligations would be thoroughly impractical and senseless. (p. 297)
General release
A document expressing the intent of a creditor to release a debtor from obligations to an existing and valid debt. (p. 296)
Incidental damages
Damages awarded for losses indirectly, but closely, attributed to a breach to cover any expenses paid out by an innocent party to prevent further loss. (p. 304)
Injunction
A court order preventing someone from performing a particular act or commanding the defendant to do some positive act to alleviate a problem. (p. 305)
Liquidated damages
Damages agreed to by the parties to a contract in the event of a breach. (p. 304)
Mutual rescission
In the majority of cases, requires both parties to return to the other any consideration already received or pay for any services or materials already rendered. (p. 295)
Nominal damages
Token damages awarded to parties who have experienced an injury to their legal rights but no actual loss. (p. 304)
Performance
In contact law, the situation that exists when the parties to a contract have done what they had agreed to do. (p. 289)
Punitive damages
Damages in excess of actual losses suffered by the plaintiff awarded as a measure of punishment for the defendant's wrongful acts. Also called exemplary damages. (p. 300)
Reasonable time
In contract law, the time that may fairly, properly, and conveniently be required to do the task that is to be done, with regard to attending circumstances. (p. 298)
Satisfactory performance
In contract law, the situation that exists when either personal taste or objective standards determine the contracting parties have performed their contractual duties according to the agreement. (p. 291)
Specific performance
A decree from a court ordering a contracting party to carry out the promises made in a contract. (p. 305)
Speculative damages
Damage computed on losses that have not actually been suffered and that cannot be proved; they are based entirely on an expectation of losses that might be suffered from a breach; the courts do not allow speculative damages. (p. 305)
Substantial performance
In contract law, the situation that results when a party to a contract, in good faith, executes all the promised terms and conditions of the contract with the exception of minor details that do not affect the real intent of their agreement. (p. 292)
Taxable costs
Legal expenses, such as those involved in filing a case and issuing subpoenas. (p. 306)
Taxable expenses
Legal expenses, such as those involved in filing a case and issuing subpoenas. (p. 306)
Tender of payment
An offer by the buyer of goods to turn the money over to the seller. (p. 294)
Tender of performance
An offer to do what one has agreed to do under the terms of a contract. (p. 294)
Termination by waiver
The situation that exists when a party to a contract with the right to complain of the other party's unsatisfactory performance or nonperformance fails to complain. (p. 295)