Impossibility of Performance - ️️A doctrine under which a party to a contract is
relieved of his or her duty to perform when performance becomes objectively impossible
or totally impracticable (through no fault of either party)
Novation - ️️The substitution, by agreement, of a new contra...
LENB 3135 Chapter 11: Contract
Performance, Breach, and Remedies
Impossibility of Performance - ✔️✔️A doctrine under which a party to a contract is
relieved of his or her duty to perform when performance becomes objectively impossible
or totally impracticable (through no fault of either party)
Novation - ✔️✔️The substitution, by agreement, of a new contract for an old one, with
the rights under the old one being terminated. Typically, this involves the substitution of
a new party for one of the original parties to the contract
Anticipatory Repudiation - ✔️✔️An assertion or action by a party indicating that he or
she will not perform an obligation that he or she is contractually obligated to perform at
a future time
Assignment - ✔️✔️The transfer of a contractual right to a third party
Bilateral Mistake - ✔️✔️A mistake that occurs when both parties to a contract are
mistaken about the same material fact
Breach of Contract - ✔️✔️The failure, without legal excuse, of a promisor to perform
the obligations of a contract
Commercial Impracticability - ✔️✔️A doctrine that may excuse the duty to perform a
contract when performance becomes much more difficult or costly due to forces that
neither party could have foreseen at the time the contract was formed
Condition - ✔️✔️A qualification, provision, or clause in a contractual agreement, the
occurrence or nonoccurrence of which creates, suspends, or terminates the obligations
of the contracting parties
Condition Precedent - ✔️✔️In a contractual agreement, a condition that must be met
before a party's promise becomes absolute
Consequential Damages - ✔️✔️Foreseeable damages that result from a party's breach
of contract but are caused by special circumstances beyond the contract itself
Delegation - ✔️✔️The transfer of a contractual duty to a third party
Accord and Satisfaction - ✔️✔️An agreement between two parties to accept
performance that is different from what was promised in the original contract. After the
performance has been completed, the obligation is discharged
, Discharge - ✔️✔️- The termination of an obligation. In contract law
- Occurs when parties have fully performed their contractual obligations or when events,
conduct of the parties, or operation of law releases the parties from performance
- (In bankruptcy proceedings, the extinction of the debtor's dischargeable debts)
Frustration of Purpose - ✔️✔️A court-created doctrine under which a party to a contract
will be relieved of his or her duty to perform when the objective purpose for performance
no longer exists due to reasons beyond that party's control
Intended Beneficiary - ✔️✔️A third party for whose benefit a contract is formed - Can
sue the promisor if the contract is breached
Liquidated Damages - ✔️✔️An amount, stipulated in a contract, that the parties to the
contract believe to be a reasonable estimate of the damages that will occur in the event
of a breach
Liquidated Debt - ✔️✔️A debt that is due and certain in amount
Mitigation of Damages - ✔️✔️A rule requiring a plaintiff to do whatever is reasonable to
minimize the damages caused by the defendant
Mutual Rescission - ✔️✔️An agreement between the parties to cancel their contract,
releasing them from further contractual obligations. The object is to restore the parties
to the positions they would have occupied had no contract ever been formed
Penalty - ✔️✔️A contract clause that specifies a certain amount to be paid in the event
of a default or breach of contract but is unenforceable because it is designed to punish
the breaching party rather than to provide a reasonable estimate of damages
Performance - ✔️✔️In contract law, the fulfillment of one's duties arising under a
contract with another; the normal way of discharging one's contractual obligations
Privity of Contract - ✔️✔️The relationship that exists between the promisor and the
promisee of a contract
Release - ✔️✔️An agreement in which one party gives up the right to pursue a legal
claim against another party
Reformation - ✔️✔️A court-ordered correction of a written contract so that it reflects the
true intentions of the parties
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