Business law 16

  1. breach of contract
    contracting party's failure to perform an absolute duty owed under a contract
  2. complete performance
    a situation in which a part to a contract renders performance exactly as required by the contract. complete performance discharges that party's obligations under the contract
  3. tender of peformance
    an unconditional and absolute offer by a contracting pary to perform his or her obligations under a contract
  4. substantal performance
    performance by a contracting party that deviates only slightly from complete performance
  5. minor breach
    a breach that occurs when a party renders substantal performance of his or her contractual duties
  6. material breach
    a breach that occurs when a party renders inferior performance of his or her contractual duties
  7. inferior performance
    a situation in which a party fails to perform express or implied contractual obligation and impairs or destroys the essence of a contract
  8. anticipatory breach
    a breach that occurs when one contracting party informs the other that he or she will not perform his or her contracutal duties when due
  9. monetary damges
    an award of money
  10. compensatory damages
    an award of money intended to compensate a nonbreaching party for the loss of the bargain. Compensatory damages place the nonbreaching party in the same position as if the contract had been fully performed by restoring the benefit of the bargain
  11. mitigation
    a nonbreaching party's legal duty t avoid or reduce damages caused by a breach of contract
  12. consequential damages
    foreseeable damages that arise from circumstance outside a contract. To be liable for these damages. the breaching party must know or have reason to know that the breach will cause special damages to the other party
  13. liquidated damages
    damages that parties to a contract agree in advance should be paid if the contract is breached
  14. nominal damages
    damages awarded when the nonbreaching party sues the breaching party even though no financial loss has resulted from the breach. Nominal damages are usually $1 or some other small amount
  15. writ of attachment
    an order of the court that enables a government office to seize property of the breaching party and sell it at auction to satisfy a judgment
  16. writ of garnishment
    an order of the court that orders that wages, bank accounts or other property of the breaching pary held by third persons be paid to the nonbreaching party to satisfy a judgment
  17. rescission
    an action to rescind a contract. Rescission is available if there has been a material breach of contract, fraud, duress, undue influence, or mistake
  18. restitution
    return of goods or property received from the other party to rescind a contract. If the actual goods or property are not available a cash equivalent must be made
  19. specific performance
    a remedy that orders the breaching party to perform the act promised in the contract. Specific performance is usually awarded in cases in which the subject matter is unique such as in contracts involving land heirlooms and paintings.
  20. reformation
    an equitable doctrine that permits the court to rewrite a contract to express the parties true intentions
  21. injunction
    a court order that prhibits a person from doing a certain act
  22. intentional interference with contractual relations
    a tort that arises when a third party induces a contracting arty to breach the contract with another party
  23. covenant of good faith and fair dealing
    an implied covenant under which the parties to a contract not only are held to the express terms of the contract but are also required to act in "good faith" and deal fairly in all respects in obtaining the objective of the contract
Card Set
Business law 16
chapter 16