LGST 3010 Chapter 8 – Flashcards
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Good faith
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the duty to honestly adhere to the contract's common purpose. Under this obligation neither party can do anything to prevent the other party from enjoying the "fruits of the contract." Instead, both must try to make the deal work as written
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Complete Performance
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both parties complete all terms of the contract
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Substantial Performance
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completion of essential terms of the contract such that performance can be considered more or less complete plus an honest effort to complete the rest and no willful departure from the terms of the agreement
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Breach of Contract
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one side doesn't do what they were supposed to
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Discharge contract
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make the contract go away by : completing contract, mutual recision, substantial performance
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accord and satisfaction
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allows one party to create an agreement, or accord, with the other party to accept a substitute performance in order to satisfy the original performance; the completion of the new duty discharges the old one.
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rescind contract by operation of law
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impossibility or impracticability (wartime or unforeseen)
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Impossibility of Performance
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situation in which a party cannot legally or physically perform the contract (because of an unforeseeable event)
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Commercial Impracticability
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impracticable because the performance of a contract is unreasonably expense, injurious, or costly to a party
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Rescission
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Cancellation of a contract that occurs when both parties agree to discharge each other from all duties under the contract and end the agreement, no matter what has been done or left undone.
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Anticipatory repudiation
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you foresee that you won't be able to fulfill the contract -if you know the other party can't fulfill their part, you can get someone else but you have to tell them so you don't breach the contract
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Nominal
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monetary damages of a very small amount (usually $1) awarded to the injured party when they agree that something went wrong but real damages can't be show (Monetary Damages)
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Liquidated
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monetary damages for nonperformance that are written in a clause of the contract(ex: construction of dorms not finished in time)(Monetary Damages)
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Punitive
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monetary damages awarded in addition to compensatory damages for the sole purpose of making sure it doesn't happen again in the future (Monetary Damages)
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Compensatory
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monetary damages awarded for a breach in contract that results in higher costs/lost profits for the injured party (Monetary Damages)
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Equitable Remedies (nondollar damages)
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when dollar damages are impracticable, the injured party may turn to these remedies
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Rescission
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cancel the whole contract (Equitable Remedies)
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Reformation
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change terms of the contract to fix the contract—could be just to fix a typo (like if price says $0.50 instead of $5.50) (Equitable Remedies)
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Injunction
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ask court to temporarily or permanently make someone stop doing something (Equitable Remedies)
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specific performance
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asking court to force other party to perform under contract/ make them do something specific; must prove monetary damages no good
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mitigation of damages
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keep it as small as possible (baseball through the window)
