BLA NEED TO KNOW ASAP

Substantial performance

A party has mostly fulfilled the contract, with only a minor issue remaining.

Mutual rescission

Both parties agree to cancel the original contract.

Novation

All parties agree to replace an old contract or obligation with a new one.

Accord and satisfaction

The parties agree to accept a different performance to settle an obligation, and that agreement is carried out.

Impossibility of performance

Performance becomes impossible.

Breach

when a party fails to perform a contractual promise.

Anticipatory repudiation

occurs when a party says or indicates before performance is due that they will not perform. Your notes say this is treated as a material breach, allowing the non-breaching party to terminate the contract.

Compensatory damages

Make the injured party whole by putting them in the position they would have been in if the breach had not occurred. The standard measure is the difference between what they should have received and what they actually received.

Consequential damages

Additional losses caused by special circumstances beyond the contract itself, such as lost profits. The loss must be foreseeable.

Mitigation of damages

The injured party has a legal duty to take reasonable steps to minimize losses after a breach.

Liquidated damages

An amount established in the contract for a breach. Your notes highlight whether damages would have been difficult to estimate when the contract was formed.

Assignment

You transfer your right to receive a benefit, such as payment.

Delegation = duties

You arrange for someone else to perform your contractual responsibilities.

Condition precedent

Something must happen before a contractual duty becomes due. Example: A buyer must obtain an acceptable home inspection

Condition subsequent

An event occurs that ends an existing contractual duty

Time is of the essence

Your notes explain that this clause can elevate a minor breach to a major breach.

Statute of Frauds

• Contracts involving interests in land.

• Contracts that are objectively impossible to perform within one year, measured from the day after the contract is formed.

• Collateral promises to pay another person's debt if that person fails to pay.

• Certain promises made in consideration of marriage.