Legal Relations Chapter 9

  1. What are some of the ways a contract can be brought to an end?
    • Through Performance - completed
    • Through Agreement - agree to end
    • Through Frustration - Unforeseen event
    • Through Breach - releases innocent party
  2. Define the termination through performance.
    • Performance is completed when all implied and express promises have been fulfilled.
    • Doesn't necessarily end the relationship.
    • May continue to do business - new, continuing or overlapping contracts.
  3. Define the termination through agreement.
    • Parties voluntarily bring the contract to an end.
    • May agree to enter into a whole new contract.
    • Ends the contract.
  4. What is Substituting a Party?
    Transferring one party's rights and obligations to someone else; a limited form of novation.
  5. What is Novation?
    The substitute of parties in a contract or the replacement of one contract with another.
  6. What is the Assignment of a Contract?
    • The transfer of a right by an assignor to an assignee.
    • A creditor (the assignor) may assign the right to collect to another person (the assignee) without the agreement of the debtor.
    • To be effective, the debtor must have notice of the assignment so that she knows to pay the assignee rather than the creditor.
  7. Define the termination through frustration.
    • Termination of a contract by an unexpected event or change that makes performance functionally impossible or illegal.
    • Functionally impossible - a disaster
    • Illegal - laws may have changed
    • Neither side is liable to the other for breach.
  8. In order to terminate by frustration, one must establish?
    • Event was dramatic and unforeseen
    • Neither party had assumed risk of the matter occurring
    • Event arose without being either party's fault
    • Performance functionally impossible or illegal
  9. What is the Balance of Probabilities?
    Proof that there is a better than 50% chance that the circumstances of a contract are as the plaintiff contends.
  10. To prove a breach of contract, a plaintiff must demonstrate beyond the balance of probabilities that?
    • 1. There is a contract between the parties
    • 2. There is a breach of contract
    • 3. There is an entitlement to a rememdy
  11. Define a Condition.
    An important term, which, if breached, gives the innocent party the right to terminate the contract and claim damages.
  12. In terms of Breach of Contract, define Warranty.
    • A minor term, which, if breached, gives the innocent party the right to claim damages only.
    • A promise of less significance.
  13. Define Innominate Term.
    A term that cannot easily be classified as either a condition or a warranty.
  14. What is a Fundamental Breach?
    A breach of contract that affects the foundation of the contract. Such a breach may render the entire contract, including the exclusion clause, inoperative.
  15. What is an Anticipatory Breach?
    A breach that occurs before the date of performance.
  16. What is the Exemption or Limitation of Liability Clause?
    • Clause limiting or excluding liability for breach.
    • If you  breach, you owe X amount of $$'s.
  17. Define Damages as an Entitlement to a Remedy.
    Monetary compensation for breach of contract or other actionable wrong
  18. What is the Remoteness Principle?
    • Defendant is responsible for reasonable foreseeable damages suffered by the plaintiff.
    • Pain, suffering, and emotional distress are not generally accepted as being a consequence of a breach of contract.
  19. How do you Test for Remoteness?
    • 1. Damages could have been anticipated
    • 2. Damages are reasonably foreseeable
  20. Define your Duty to Mitigate.
    The obligation to take reasonable steps to minimize the losses resulting from a breach of contract or other wrong.
  21. Name 4 Equitable Remedies.
    • Specific Performance - court order for the party who breached the contract to do exactly what the contract obligated him to do
    • Injunction - Promise not to engage in specified activities
    • Interlocutory Injunction - Order to refrain from doing something for a limited period of time
    • Rescission - To restore the parties to the situation they were in before the contract was formed
  22. What is Unjust Enrichment?
    Occurs when one party undeservedly or unjustly secured a benefit at the other party's expense.
  23. What is Restitutionary Quantum Meruit?
    • An amount that is reasonable given the benefit the plaintiff has conferred.
    • Can't prove the amount, may get an appraisal of the benefits received.
Author
Chas
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337937
Card Set
Legal Relations Chapter 9
Description
Legal Relations Chapter 9
Updated