Business Law

An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.

The failure, without legal excuse, of a promisor to perform the obligations of a contract.

A doctrine under which a seller may be excused from performing a contract when (1) a contingency occurs, (2) the contingency's occurrence makes performance impracticable, and (3) the nonoccurrence of the contingency was a basic assumption on which the contract was made. Despite the fact that UCC 2615 expressly frees only sellers under this doctrine, courts have not distinguished between buyers and sellers in applying it.

Conditions in a contract that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.

A 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.

A condition in a contract that must be met before a party's promise becomes absolute.

A condition in a contract that operated to terminate a party's absolute promise to perform.

The termination of an obligation. (1) In contract law, ______ occurs when the parties have fully performed their contractual obligations or when events, conduct of the parties, or operation of the law releases the parties from performance. (2) In bankruptcy proceedings, the extinction of the debtor's dischargeable debts.

The release of a debtor from all debts that are provable, except those specifically excepted from discharge by statute.

A court-created doctrine under which a party to a contract will be relieved of his or her duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party's control).

An agreement between the parties to cancel their contract, releasing the parties from further obligations under the contract. The object of the agreement is to restore the parties to the positions they would have occupied had no contract ever been formed. See also Rescission

The substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated. Typically, there is a substitution of a new person who is responsible for the contract and the removal of an original party's rights and duties under the contract.

In contract law, the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.

An unconditional offer to perform an obligation by a person who is ready, willing, and able to do so.