chapter 19: contract performance, nonperformance, and discharge
TRANSCRIPT
CHAPTER 19: CONTRACT PERFORMANCE, NONPERFORMANCE, AND DISCHARGE
Learning Objectives:• Types of Conditions • Performance of Conditions• Excuses for Nonperformance• Discharge of Contracts
Chapter 19 2
CHAPTER 19: CONTRACT PERFORMANCE, NONPERFORMANCE, AND DISCHARGE
1. Definition: an act or event that triggers performance of a promise.
2. Types of Conditions:a. Classifications as to when conditioning event
must occur:i. Condition Precedent: condition must occur before
duty to perform arises.ii. Conditions Concurrent: performances must occur at
the same time.iii. Conditions Subsequent: event discharges a duty to
perform.
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CONDITIONS
1. Definition: an act or event that triggers performance of a promise.
2. Types of Conditions:a. Classifications as to when conditioning event
must occur
b. Classifications as to the way they are created:i. Express Conditions: stated in contract.
ii. Constructive Conditions: imposed by the court.
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CONDITIONS
1. Tender of Performancea. Definition: offer to perform
b. Consequences if tender of payment is made
2. Substantial Performancea. Definition: performance is considerable, with
only shortcomings of a trivial nature.
b. Consequences: nonmaterial breach.
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PERFORMANCE OF CONDITIONS
3. Divisibility: Installment Contracts
4. Anticipatory Repudiationa. Definition: refusal to perform is stated
before time of performance.
b. Result: non-repudiating party has an election of remedies.
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PERFORMANCE OF CONDITIONS
1. Hindrance, Prevention, or Noncooperation
2. Waiver
3. Impossibility of Performance
4. Commercial Frustration
5. Commercial Impracticability Under the Code
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EXCUSES FOR NONPERFORMANCE
1. Methods
2. Payment
3. Accord and Satisfaction
4. Statute of Limitations
Chapter 19 8
DISCHARGE OF CONTRACTS
CHAPTER 19: CONTRACT PERFORMANCE, NONPERFORMANCE, AND DISCHARGE