BU231 Lecture Notes - Novation, Lightning
Document Summary
Let"s agree cancel old contract, come up with new one. Condition precedent: event must occur before it can take effect. Real estate, mortgage financing, my selling my house, etc . Entered into mortgage interest term 5 year period, not allowed trapped. States law excuses contract, when person is frustrated, cannot allow person to perform. If before mistake in subject matter of contract. Problem is what if one party already started performing, now somebody has to suffer loss. Germany invaded poland, and britain declared war on germany. Court decided if no benefit at all to party who paid money, got all money back. No matter how small benefit other party could keep all money. Effort be kind, court created rule caused issues.
