Textbook Notes (363,339)
Canada (158,341)
LAW 122 (616)
Chapter 11

Chapter 11 Notes

8 Pages
Unlock Document

Ryerson University
Law and Business
LAW 122
Kernaghan Webb

Chapter 11: Discharge & Breach As we learned in chapter 9 & 10, some contracts come to an end when they are voided or rescinded. Most contracts, however, are brought to an end via discharge. o Discharged: a contract is discharge when the parties are relieved of the need to do anything more under the contract. D ISCHARGE BY P ERFORMANCE The most common form of discharge is performance. o Performance: occurs when the parties fulfill all of the obligations contained in the contract. However, in some situations it is difficult to determine whether proper performance has occurred. As a general rule the parties must performance exactly as the contract requires. A deviation from the terms is considered a breach. Time of Performance Although the parties generally have to perform exactly as the contract says, the courts usually hold that time is not of the essence. In other words, even if a contract states that performance must occur by a particular date, a party may be entitled to perform late. However, if it does so, it can be held liable for losses that the other party suffers as a result for the delay. In some situations, time is of the essence. If so late performance can be refused, and if that happens, the contract will not be discharged by performance. Finally, even if the parties do not agree on a specific time or date, the court s will find that performance must occur within a reasonable time, having regard to all of the circumstances, including the subject matter of contract. (E.g. A contract dealing with perishable items) Tender of Payment Most contracts require a payment of money by at least one of the parties. Business people should be aware of some very specific rules that govern payments. i. The debtor has the primary obligation of location the creditor and tendering (offering) payment, even if the creditor has not asked for it. Must be reasonable, cannot occur at an inconvenient time or under inconvenient circumstance. o A reasonable tender has to be made only once. ii. Unless the contract says otherwise, a creditor can insist on receiving legal tender. o Consequently, a creditor generally does not have to accept payment by ways of cheque or electronic debit. o As a precaution, business people who intend to pay by anything other than a precise amount of legal tender may want to provide for that possibility in the contract. o Legal Tender: is a payment of notes (bills) and coins to a certain value. Tender of Performance 1 of 8 www.notesolution.com
More Less

Related notes for LAW 122

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.