Contracts - Breaches and Damages

Contingency

Failure of a condition in a contract that prevents the contract from being executed.

Frustration of Purpose

When the purpose of a contract is undermined by an unforeseen event, making the performance of the contract significantly different from what was originally intended.

Impossibility of Performance

Unforeseen events that make it impossible to fulfill the obligations of a contract.

Novation

The replacement of one party in a contract with another party, with the consent of all involved parties.

Hadley v Baxendale

A legal precedent that establishes the importance of time in contracts, requiring advanced notice of circumstances and potential liquidated damages.

Breach

Failure, without legal excuse, to fulfill the obligations of a contract.

Material breach

A significant breach of contract that goes to the core of the agreement.

Minor breach

A less significant breach of contract that does not go to the core of the agreement.

Implied Warranty of Merchantability

The expectation that a product is reasonably fit for its intended ordinary purposes.

Implied Warranty of Fitness for a Particular Purpose

The expectation that a product, if advertised for an unintended use, must fulfill that unintended use.

Implied Warranty of Habitability

The duty of landlords to maintain rental units and keep them fit for residential occupancy.

Implied Warranty of Marketability

The expectation that vehicles or homes have clear titles or identification numbers that can be used to pull up reports on the property.

Lien

A legal right that gives a creditor priority over an unperfected secured party, allowing them to seize and sell collateral property or assets.

Secured loans

Loans that are backed by collateral, which can be seized if the borrower fails to meet their obligations.

Collateral

Property taken as a guarantee of payment on a loan, which can be seized if payments are not made.

Damages

Monetary compensation awarded to the injured party in a breach of contract case.

Remedies

Legal actions or measures that can be taken to address a breach of contract.

Rescission

The revocation, cancellation, or repeal of a law, order, or agreement.

Restitution

Compensation provided to the injured party for any injury or loss suffered.

Specific Performance

A court-ordered action that requires a party to fulfill their obligations under a contract.

Reformation

The modification of a contract by a court to reflect the true intent of the parties involved.

Attorney's Fees Clause

A clause in a contract that allows for the recovery of attorney's fees in certain circumstances, such as a breach of contract involving an abuse of the legal system.

Equitable Remedies

Remedies that are based on fairness and can be flexible in nature, such as injunctions and restitution.

Mutual Rescission

The agreement between all parties involved to cancel or revoke a contract.