LAW 122 Chapter Notes - Chapter 11: Condition Precedent, Debit Card, Condition Subsequent
LAW – Chapter 11 – Discharge and Breach
A contract is discharged when the parties are relieved of the need to do anything more under
the contract
Performance – occurs when the parties fulfill all the obligations contained in the contract
Time is not of the essence – means that a party is entitled to perform late even if the
contract sets a specific date
oCan be held liable for loss is party does perform late
oThe performance must occur within a reasonable time
Tender of payment
oDebtor has the primary obligation of locating the creditor and tendering
payment
oUnless a contract says otherwise, a creditor can insist on receiving legal tender –
a payment of notes and coins to a certain value
oA debtor does not have to actually tender payment if it would obviously be
refused
o4 payment options: debit card, credit card, cheques, paypal
Tender of Performance
oDamages – the amount of money that the court may order the defendant to pay
to the plaintiff
oSubstantial performance – generally satisfies the contract but is defective or
incomplete in some minor way
oEntire contract – says that no part of the price is payable unless all of the work is
done
In some situations one or both parties can discharge a contract even though it was not fully
performed – discharge by agreement
Option to terminate – is a contractual provision to discharge a contract without the
agreement of the other
Condition subsequent and condition precedent
oCondition subsequent – is a contractual term that states that the agreement will
be terminated if a certain event occurs
oTrue condition precedent – a contractual term that states that an agreement
will come into existence only if and when a certain event occurs
oCondition precedent – a contractual term that states that while a contract is
formed immediately, it does not have to be performed unless and until a certain
event occurs (suspension of primary obligations)
Rescission – occurs when the parties agree to bring their contract to an end
oExecutory – if a party has not fully performed its obligations
oExecuted – if a party has fully performed its obligations
Accord and satisfaction – occurs when a party gives up its right to demand contractual
performance in return for some new benefit
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Document Summary
Law chapter 11 discharge and breach. A contract is discharged when the parties are relieved of the need to do anything more under the contract. Performance occurs when the parties fulfill all the obligations contained in the contract. In some situations one or both parties can discharge a contract even though it was not fully performed discharge by agreement. Option to terminate is a contractual provision to discharge a contract without the agreement of the other. Rescission occurs when the parties agree to bring their contract to an end: executory if a party has not fully performed its obligations, executed if a party has fully performed its obligations. Accord and satisfaction occurs when a party gives up its right to demand contractual performance in return for some new benefit. Release an agreement under seal to discharge a contract. Variation involves an agreement to vary the terms of an existing contract.
