Chapter 16: Performance, Conditions, and Discharge in Contract Law

How is a party discharged from a contract?

A party is discharged when they have no more duties under the contract, usually by full performance.

What are the types of conditions in contracts?

Conditions can be precedent (must occur before duty), subsequent (must occur after duty), or concurrent (must happen simultaneously).

What is strict performance in contract law?

Strict performance is when a party performs exactly as promised, which is usually not expected.

What is substantial performance?

Substantial performance occurs when a party fulfills most of their obligations but may have minor defects; they receive the full contract price minus the value of defects.

What is a personal satisfaction contract?

A personal satisfaction contract allows the promisee to subjectively evaluate the promisor's performance, typically involving feelings or tastes.

What is the duty of good faith in contracts?

Every contract imposes a duty of good faith and fair dealing in its performance and enforcement.

What does a 'Time is of the Essence' clause do?

It makes contract dates strictly enforceable, requiring clear statements that prompt performance is essential.

What happens when one party breaches a contract?

The other party is discharged from their obligations and may sue for damages.

What is a material breach?

A material breach is a significant violation of the contract that allows the non-breaching party to be discharged.

What is an anticipatory breach?

An anticipatory breach occurs when it is clear that one party will not honor the contract.

What is the statute of limitations for civil wrongs?

The statute of limitations for civil wrongs is typically around 3 years.

What constitutes true impossibility in contract law?

True impossibility occurs when an unforeseen event makes it impossible to fulfill the contract, such as destruction of the subject matter or death of the promisor.

What is commercial impracticality?

Commercial impracticality arises when unforeseen events make the contract very difficult and unfair for one party to perform.

What is frustration of purpose?

Frustration of purpose occurs when an unforeseen event undermines the contract's value for one party.

How are express conditions created in contracts?

Express conditions are created by clearly stating the conditions in the contract without needing special language.

What are implied conditions in contracts?

Implied conditions are not explicitly stated but are understood from the agreement's context.