+
Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
|
Contracts may be terminated by
|
(a) performance,
(b) operation of law,
(c) voluntary agreement of the parties,
(d) impossibility of performance, and
(e) acceptance of breach of contract.
|
|
When all the terms of a contract have been fulfilled, the contract is discharged by performance.
|
If the contract states when performance is to be rendered, the contract provisions must be followed unless performance on the exact date specified is not vital.
A tender of performance discharges the one making the tender.
If performance calls for the payment of money and one party offers in legal tender the correct amount and the tender is refused, the contract is not terminated. The one tendering payment must keep the tender good. Tender does not stop the running of interest. Also, in the event of a court action, the other party must pay the court costs.
Ordinarily, when a contract has been performed in a manner that would satisfy an ordinary, reasonable person, the terms of the contract have been met sufficiently to discharge it.
If a contract is substantially performed, the party performing may demand the full price under the contract, less the amount needed to correct the defect in performance.
|
|
Contracts may be terminated by operation of law.
|
Bankruptcy releases the debtor from most contracts to pay creditors.
If the innocent party in a breached contract delays too long in instituting court action, the contract is terminated by the statute of limitations.
If one party to a written contract intentionally alters a written contract in a material manner without the consent of the other party, the other party is released from the contract.
|
|
The parties to a contract are free to change their minds by
Whenever the parties agree not to carry out a contract's terms, the contract is
|
mutual agreement.
discharged.
|
|
if the act called for in a contract is impossible to perform at the time the contract is made, no contract comes into existence.
|
If the contract involves specific subject matter that is destroyed, the contract is discharged.
If an act is legal at the time of the contract but is later made illegal, the contract is discharged.
If the contract calls for personal services, death or physical incapacity of the promisor discharges the contract.
|
|
breach of contract.
|
When one of the parties fails or refuses to perform the obligations assumed under the contract,
|
|
A force majeure clause in a contract excuses performance because of an extraordinary event outside the nonperforming party's control.
|
Sue for damages. Damages may be nominal, compensatory, punitive, or liquidated.
Rescind the contract. If the innocent party has executed the contract, anything parted with may be recovered.
Sue for specific performance. This remedy is available in real estate contracts and contracts for the sale of rare articles of personal property, such as heirlooms, the value of which cannot be readily determined.
|
|
breaching the contract by malpractice.
|
A professional person who does not perform a contract with the ability and care normally exercised by others in the profession
|
|
If a contract states no time for performance, when must it be performed?
|
If a contract states no time for performance, performance must ordinarily be rendered within a reasonable time.
|
|
What is the effect of a tender of performance?
|
A tender of performance discharges the obligation of the one making the tender so long as the tender conforms to the agreement.
|
|
What must a debtor do to make a valid tender of payment?
|
In order to make a valid tender of payment a debtor must offer the exact amount due in legal tender, including interest, costs, and attorneys' fees, if any are required.
|
|
What is the rule the courts generally have adopted regarding whether satisfactory performance has occurred?
|
The rule the courts generally have adopted regarding whether satisfactory performance has occurred is that if the contract is performed in a manner that would satisfy an ordinary, reasonable person, the terms of the contract have been met sufficiently to discharge it.
|
|
What circumstances surrounding a deviation from a contract will a court weigh in determining whether there has been substantial performance of a contract?
|
In determining whether there has been substantial performance when there has been a deviation from a contract, a court will weigh the significance of and reasons for the deviation, the ease of correction, the extent to which the purpose of the contract is defeated, and the use or benefit to the owners of the work completed
|
|
May a debt that has been outlawed by the statute of limitations ever be revived?
|
A debt that has been outlawed by the statute of limitations may be revived by a written acknowledgment or promise to pay the debt, by part payment after the debt was outlawed, or by payment of the interest.
|
|
What is the effect of an intentional alteration by one party without the consent of the other?
|
The intentional alteration of a contract by one party without the consent of the other discharges the innocent party. However, the altering party can be held to either the original contract terms or the terms as altered:
|
