BUL4310 Ch 13

Unilateral Mistake

when one party is mistaken on a material fact

• no relief from contract

Bilateral mistake

both parties are mistaken about same fact

• contract can be rescinded

Undue Influence

persuading someone to do something they usually wouldn’t

Discharge

termination of an obligation when obligations are fully performed

Performance

fulfilment of ones duties under a contract

Condition

possible future event that will trigger performance or terminate obligation of a contract

Condition precedent

condition in contract that must be met before partys promise becomes absolute

• ex: university housing

Substantial performance

party in good faith performs substantially all terms

Jacob & Youngs v. Kent

• Kent was having custom house built with very specific contract

• Contractor didnt use requested pipes due to backorder

• Judge said substantial promise was enough bc the pipes were almost identical; contractor wins

Material Breach of Contract

when performance is not at least substantial

Anticipatory repudiation

indication that party will not perform obligation at a future time

• breaching party must contact ASAP if they know contract cant be performed

Discharge by Novation

substitution by agreement of a new contract for an old one with rights under old one being terminated

Discharge by Operation of Law

• Material alteration of contract

  • Running of the statute of limitations (3 yrs for FL)

• Bankruptcy

• Impossibility of performance

Frustration of Purpose

doctrine under which party will be relieved when objective no longer exists due to reasons beyond parties control

• ex: school rents out entire hotel, hotel spends $ in anticipation of event, covid hits, $ gets refunded over time

Punitive Damages (punish)

designed to punish a wrongdoer, very seldom awarded in lawsuits

Nominal damages

small monetary award when no actual damage was suffered

Restitution

remedy under which a person is restored to their original position prior to loss or injuryS

Specific performance

remedy requiring the breaching party to perform as promised

• ex: you dont want $ back, you want promise fulfilled