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LEGS 3010: Ch. 14

Terms in this set (29)

discharge of contract
- performance (preferred)
- material breach by 1/both parties
- mutual agreements
- operation of law
types of performance
1. complete: all parties' duties are carried out
2. substantial: when "nearly all" terms of agreement completed
discharge by material breach
party unjustifiably fails to substantially perform his/her contractual obligations
- discharges non-breaching party from his/her contractual obligations
- can sue for damages
anticipatory repudiation
- before actual time of performance, party decides not to complete contract obligations
- non-breaching party discharge and sue for breach
discharge by mutual agreements
- both parties agree
- substituted contract
- accord and satisfaction
- novation
substituted contract
replace contract with a new one
accord and satisfaction
substitute performance
novation
substitute someone else as long as everyone agrees
discharge by operation law
- alteration of contract
- bankruptcy
- tolling of statute of limitations
- impossibility of performance
- commercial impracticability
- frustration of purpose
alteration of contract
when there's an error or is unclear and help with a minor party
bankruptcy
elaborate process; assets are sold and distributed to creditor based on priority system
tolling of statute of limitations
amount of time that parties have to super breach of contract; state law; bring it to cases varies by state by once time is out, lose benefits
impossibility of performance
legally impossible
commercial impracticability
commercially impracticable the will result on performance causing some type of (physical, financial, etc) loss that asks court to let us out ​​
frustration of purpose
party wants out due to purpose not existing anymore​​
compensatory damages (expectation damages)
court prefer monetary remedies (put you in position if contract would have been completed/performed)
consequential (special) damages
only when there's knowledge of it (special damages for loss profits)
liquidated damages
instead of suing and leaving it to the court instead it takes it to the parties involved
- parties decide at contract formation of damages if either party breaches
nominal damages
minimal amount awarded to court due to lack of physical damages
punitive damages
occur in fraudulent and wrongdoing events
Kent State University v. Ford (2015)
Ford was headman of basketball team but left and had 4 years left so was refusing to pay liquidated damages but Court said that was what it was agreed upon and it was reasonable for all the cost incur based on Ford's leaving (1.2 million)
Purll vs. Patrick Darrell Vailes
- another exmaple of liquidated clause
- court of appeals (state of district of columbia)
- plaintiff: Patrict; defendant: Purll
- plaintiff hires comp for renovation but had a counterclaim
- liquidating clause: breaching party gets 35%
- reasonable liquidated clause based on industry standards in district of columbia
equitable remedies
- rescission
- restitution
- specific performance
- injunction
- reformation
rescission
termination of contract
- when there's a mutual mistake, either party can rescind or terminate
- remedy: getting out of contract
restitution
return of any property transferred under contract
- remedy: putting you back before contract formation (consideration gets back)
resitution
return of any property transferred under contract
- remedy: putting you back before contract
specific performance
makes one of the parties specifically perform
- court makes one of the parties do what they promise
injunction
ask court to have a party to stop doing something
reformation
asking court the need to rewrite the contract to reflect what we agreed to
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