Contracts, credit, bankruptcy

Mirror Image rule

Offeror makes an offer to the offeree - Offeree has the power to accept the offer and create a contract - without modification

Time of acceptance

An acceptance is effective when it is dispatched (mail box rule)

Mode of acceptance

Implied - mail, email text ... expressed - acceptance must be by a specified means of communication

Substantial Performance

Minor breach of contract

inferior performance

Party fails to perform express or implied contractual obligations

Anticipatory Breach

A refusal by a party involved in a contract

Compensatory damages

Benefit of the bargain, Sale of a good, Construction contract, Employment contract

Consequential damages

Indirect losses, Damages must be foreseeable

Nominal Damages

Awarded when the non-breaching party sues the breaching party even though no financial loss has resulted from the breach

Liquidated damages

Actual damages are difficult or impractical to enter into