Escolar Documentos
Profissional Documentos
Cultura Documentos
Performance and
Discharge
1
Discharge
A party is discharged when she has no
more duties under the contract.
Discharge by Agreement
Parties can agree upon a discharge.
Conditions
A condition is an event that must occur
if a party is to become obligated
under a contract.
If the condition does not occur,
one party will probably be discharged
without performing.
No special language is necessary to
create a condition.
8
Implied Conditions
When its clear from the
agreement that there is one
Types of Conditions
1. Condition precedent: A type of condition
which must occur before a duty arises.
2. Condition subsequent: A type of condition
which must occur after a duty arises. If
the condition does not occur, the duty is
discharged.
3. Concurrent conditions: Each partys
performance is conditioned on the other
partys performance.
10
11
Strict Performance
A party is generally not required to
render strict (perfect) performance
unless:
The contract expressly
demands it, and
Such a demand is reasonable.
14
Substantial Performance
Will receive the full contract price, minus
the value of any defects.
20
21
Material Breach
Courts will only discharge a contract if a party
committed a material breach.
Your text says a material breach is one that:
Substantially harms the innocent party,
and
For which it would be hard
to compensate without
discharging the contract.
(huh, what?)
22
Material Breach
a breach that substantially harms
the other party.
and destroys the value of the
contract (e.g., defeats the purpose of
the contract)
Anticipatory Breach
When one party makes it unmistakably clear
that it will not honor the contract
Can be by promisor informing it wont
perform or
Can be by promisee finding out the other
party cant perform (reading promisor went
out of business).
24
Statute of Limitations
the time within which an injured party must
file suit
each type of action (tort, oral contract, written
contract) has different statute of limitations
it is extremely technical statute
differs from issue to issue
differs from state to state
Impossibility
Something happens that makes performing
the contract utterly impossible
-Destruction of the subject matter
-Death of a promisor in a
personal services contract
-Subsequent illegality
26
Commercial Impracticability
When something happens that:
Neither party anticipated, and
Creates a situation wherein fulfilling the
contract would now be
Extraordinarily difficult, and
Unfair to one party,
courts sometimes will discharge the contract.
27
Frustration of Purpose
When something happens that:
1. Neither party anticipated, and
28
29