Textbook Notes (368,093)
Canada (161,636)
LAW 122 (618)
Chapter 11

LAW122- Chapter 11- Discharge and Breach.docx

5 Pages
123 Views
Unlock Document

Department
Law and Business
Course
LAW 122
Professor
Theresa Miedema
Semester
Winter

Description
Tender of payment LAW122- Chapter 11- Discharge and Breach Performance Tender of performance Option to  Examine ways in which a contract may be brought to an end terminate  Discharge- a contract is discharged when the parties are relived of the need to subsequencent and condition do anything more precedent  Ways contract can be discharged Rescission o Performance Accordand o Reflect the parties agreement or intentions Areegemnt of satisfaction intention o Operation of law Discharge Release o One party fails to preform as expected  Appreciate that a contract generally will not cease to exist merely Viaration because the parties largely ignore it Novation Discharge by performance (Page 251)  Performance- occurs when the parties fulfill all of the obligations contained in Waiver the contract Frustration  Difficult to determine whether proper performance occurred  Any deviation from the terms of contract—may be considered a breach rather Operation ofLimitation law period than performance—entitled the innocent party to a remedy Time of performance Breach Bankruptcy  Time is not of the essence- in most situations  Although a time limit may be set, it can be performed late o Can be held liable for losses—result of delay  Late performance can be refused—contract will not be discharged by performance Tender of payment  Most contract require a payment of money of at least one party  General rule: creditor can insist on legal tender 1. Debtor has the primary obligation of locating the creditor and tendering payment—even if creditor has not asked  Reasonable tender only made once  Interest does not accrue on a payment 2. Creditor can insist on receiving legal tender  Legal tender- payment of notes (bills) and coins to a certain value  Does not have to accept payments of cheque or electronic debit  Debtor must provide the exact amount 3. Debtor does not have to actually tender payment if it would obviously be refused  Creditor indicates beforehand that it intends to reject payment  Advantage—money  Disadvantage—money risky, misplaced, stolen  Most common options—debit cards, credit cards, cheques  Payment of debit cards o Debit card- plastic card that allows a person to debit, or withdraw, funds from a bank account o Final once banks authorizes or refuses payment, the system no longer plays a role in the transaction o Cardholder cannot revoke or cancel transaction  Payment of credit cards o Credit card- operates by allowing a cardholder to obtain credit, or a loan, for the purpose of paying for goods or services o 3 relationships governed by a contract i. Card issuer to cardholder long list of rights and obligations  Card issuer—arranges credit by paying goods or services  Cardholder—promises to repay both value of purchases and agreed interest ii. Card issuer and merchant customer can pay by credit card only if the merchant has an agreement with the card issuer  Benefit of merchant— increase sales, relieved of the need to chase customers for payment iii. Cardholder and merchant not affected by the use of a credit card 1 LAW122- Chapter 11- Discharge and Breach  Cardholder—can not revoke payment if purchases become defective—only option is to sue merchant on the underlying sales contract o Remains liable to the card issuer  Merchant—entitled to retain funds received from the card issuer  Payment of cheques o Conditionally discharges a contractual debt o Bank may refuse to honour cheques—forged, account has been overdrawn Tender of performance  Provisions of goods and service rather than money  General rule: obligations must be exactly performed  Damages- amount of money that the court may order the defendant to pay to the plaintiff  Discharge if Substantial performance- generally satisfies the contract but is defective or incomplete in some minor way o Court will consider a number of factors—nature of defect, difference between contract price and the cost of curing the defect o Innocent party not requires to pay for work that’s not done o If builder leaves a work site without providing at least substantial performance  Parties may have used a single contract to deal of series of tasks  May create entire contract o Entire contract- says that no part of the price is payable unless all of the work is done Discharge by agreement (Page 258)  Both parties can discharge a contract even though it was not fully performed  Types of discharge can occur in several ways Option to terminate  Option to terminate- contractual provision that allows one or both parties to discharge a contract without the agreement of the other  Unilateral right to discharge o Option inserted into contract at outset o Often subject to restrictions  Eg employment terminable on two months notice Condition subsequent and condition precedent  Conditional contract o Parties agree that contract is affected by event  Condition subsequent- contractual contract that states that the agreement will be terminated if a certain event occurs o Different from option to terminate does not have to be exercised by either party to be effective o Effect of condition  Existing contract automatically terminated  Contrast: option requires decision by one party  True condition precedent- contractual term that states that an agreement will come into existence only if and when a certain event occurs o Effect of condition  Contract automatically created if event occurs  No further agreement by parties needed  Condition precedent- contractual term that states that while a contract is formed immediately, it does not have to be preformed unless and until a certain event occurs o Effect of condition  Contract created immediately  Performance of primary obligations suspended  Eg purchaser need not pay price  Performance of secondary obligation required
More Less

Related notes for LAW 122

Log In


OR

Join OneClass

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

Sign up

Join to view


OR

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.


Submit