Business Law Ch 20

  1. concurrent conditions
    In a contract, terms under which each party’s performance is conditioned on the performance of the other; occur only when the parties are required to perform for each other simultaneously.
  2. conditional contracts
    A contract that becomes enforceable only on the happening or termination of a specified condition.
  3. condition precedent
    In a contract, an event that must occur in order for a party’s duty to arise.
  4. condition subsequent
    In a contract, a future event that terminates the obligations of the parties when it occurs.
  5. complete performance
    Contract performance that occurs when all aspects of the parties’ duties under the contract are carried out perfectly.
  6. compensatory damages
    Money awarded to a plaintiff as reimbursement for her or his losses; based on the amount of actual damage or harm to property, lost wages or profits, pain and suffering, medical expenses, disability, etc.
  7. consequential damages
    In a contract, foreseeable damages that result from special facts and circumstances arising outside the contract itself. The damages must be within the contemplation of the parties at the time the breach occurs. Also called special damages.
  8. express conditions
    A condition specifically and explicitly stated in a contract and usually preceded by words such as conditioned on, if, provided that, or when.
  9. implied conditions
    A condition that is not specifically and explicitly stated but is inferred from the nature and language of the contract.
  10. injunction
    A court order either forcing a party to do something or prohibiting a party from doing something.
  11. liquidated damages
    Damages specified as a term of the contract before a breach of contract occurs.
  12. material breach
    A substantial breach of a significant term or terms of a contract that excuses the nonbreaching party from further performance under the contract and gives the nonbreaching party the right to recover damages.
  13. monetary damages
    Money claimed by or ordered paid to a party to compensate for injury or loss caused by the wrong of the opposite party.
  14. nominal damages
    Monetary damages awarded to a plaintiff in a very small amount, typically $1 to $5, to signify that the plaintiff has been wronged by the defendant even though the plaintiff suffered no compensable harm.
  15. novation
    In a contract, the substitution of a third party for one of the original parties. The duties remain the same under the contract, but one original party is discharged and the third party takes that original party’s place.
  16. objective impossibility
    In a contract, a situation in which it is in fact not possible to lawfully carry out one’s contractual obligations.
  17. punitive damages
    Compensation awarded to a plaintiff that goes beyond reimbursement for actual losses and is imposed to punish the defendant and deter such conduct in the future. Also called exemplary damages.
  18. rescission
    The termination of a contract.
  19. restitution
    The return of any property given up under a contract.
  20. special damages
    See consequential damages.
  21. specific performance
    An order of the court requiring that a nonbreaching party fulfill the terms of the contract.
  22. substantial performance
    Contract performance that occurs when nearly all the terms of the agreement have been met, there has been an honest effort to complete all the terms, and there has been no willful departure from the terms of the agreement.
  23. subjective impossibility
    In a contract, a situation in which it would be very difficult for a party to carry out his or her contractual obligations.
  24. tender
    An offer by a contracting party to perform, along with being ready, willing, and able to perform, a duty outlined in the contract.
Card Set
Business Law Ch 20
Business Law Ch 20