BU231 Lecture 12: Lecture 12 BU231
Document Summary
Chapter 13: breach of contract and its remedies. When one or both parties fail to live up to the terms of the agreement. Discharge means parties are freed from their mutual obligations: end of contract. End of contract can come about in four ways: Due to some supervening factor, contract cannot be formed. Law that is coming into creation prior to the contract being made, comes into fruition and the contract cannot be fulfilled. Minor breach may entitle innocent party to damages. Breach of a non-essential term of the contract; Breach of a term that results in one party breaking the contract. Task is to determine the importance of the term breached. If breached, can sue for damages and discharge the contract. Breach entitles damages, but not relief of obligations. An essential term of the contract is breached. The party that suffers breach elects to treat contract as discharged. Breach does not discharge a contract automatically in and of itself.
