Term
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Definition
| Before either party to a contract has a duty to perform, one of the parties may refuse to carry out his or her contractual obligations. It is treated as a material breach of contract. |
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Definition
| To terminate one's contractual duties. |
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Term
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Definition
| Fulfillment of the duties outlined in the terms of a contract. |
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Term
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Definition
| Possible future event, the occurrence or nonoccurrence of which will trigger the performance of a legal obligation or terminate an existing obligation under a contract. |
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Definition
| Condition that must be fulfilled before a paryty's performance can be required. Ex - A will sell the painting to B is it is appraised for $10k or more. |
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Definition
| A condition operates to terminate a party's absolute promise to perform. Ex - Law firm's obligation to continue employing the new hire is discharged if individual fails to maintain license to practice law. |
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Term
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Definition
| Each party's performance is conditioned on the other party's performance or offer to perform. Can only occur when the contract calls for the parties to perform their duties SIMULTANEOUSLY. Ex - Buyer agrees to pay as the seller delivers. |
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| Tender (performance can be accomplished through this) |
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Definition
| An unconditional offer to perform by a person who is ready, willing, and able to do so. |
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Term
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Definition
| A party performs exactly as agreed and there is no question as to whether the contract has been performed. All specifications and terms are met by the party. |
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Term
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Definition
| A party who in good faith performs substantially all of the terms of a contract can enforce the contract against the other party under the doctrine of substantial performance. |
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Term
| Entitlement to damages under substantial performance |
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Definition
| The party other than the one that has only partially performed is subject to remedy for the damages caused by only substantial performance. Will be compensated for the lacking amount to bring the performance to the standards set by the contract terms. |
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Term
| Material breach of contract |
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Definition
| When performance of a contractual duty is not at least substantially complete. If not substantially completed, a breach occurs and the non-breaching party can be discharged from the contract. |
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Term
| 5 Reasons a contract may be discharged |
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Definition
- By Agreement: mutual rescission, novation, accord and satisfaction
- By Performance: complete, substantial
- By failure of a condition: subsequent condition
- By breach: material breach, anticipatory repudiation
- By operation of law: statutes, BK, Impossibility of performance, material alteration.
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