Textbook Notes (368,784)
Canada (162,164)
LAW 122 (625)
Chapter 11

LAW122 Chapter 11:Discharge & Breach Textbook Notes.docx

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Law and Business
LAW 122
Theresa Miedema

LAW122 Chapter 11 Discharge and BreachDischarged A contract is discharged when the parties are relieved of the need to do anything more under the contractDischarge by PerformancePerformance Occurs when the parties fulfill all the obligations contained in the contractParties MUST perform EXACTLY as the contract requiresAny deviation from the terms of the contract Even if its small is considered a breachoThis will entitle the innocent party to a remedyTime of PerformanceTime is not of the essence Means that a party is entitled to perform late even if the contract sets a specific dateIf it does perform late than its held LIABLE for losses that the other party suffers as a result of the delayIn some situations Time IS of the Essence Ex delivery of perishable goodsIn this case late performance can be refused therefore contract will not be discharged by performanceEven if time is not initially of the essence party can INSIST upon timely performance by giving reasonable notice that performance must occur by a timeTender of Payment1 Debtor has primary obligation of locating the creditortendering offering payment Even if creditor has not asked for itMethod must be reasonableoCant be a inconvenient time or circumstancesIf creditor refuses debtor still has to pay but now debtor can wait for creditor to come byReasonable tender has to be made ONLY ONCE2 Unless contract says otherwise a creditor can insist on receiving legal tenderLegal Tender a payment of notes bills and coins to a certain valueThe creditor has entitlement to receive tender in however and whatever way they wish3 Debtor does not have to actually tender payment if it would obviously be REFUSED Ex if creditor initially indicated beforehand that they intend to reject paymentDischarge of contractual debt by payment hasandif money is loststolen owner cant do anything about itOther means of discharging a contractual debtoPayment by Debit CardDebit Card A plastic card that allows a person to debit or withdraw funds from a bank accountAllows customer to countermand Stop payment order before the merchant can cash itIf unauthorized usage occurs the cardholder is generally at fault but the bank bear the lossoPayment by Credit CardCredit Card Operates by allowing the cardholder to obtain credit or a loan for the purposes of paying for goodsservicesCard Issuer Credit Card company Ex Visa3 relationships All governed by contractCard IssuerCardholderCard issuer arranges credit by paying for goodsservices on the cardholders behalf The cardholder repays the debt every monthpromises to report any misusage when lostCard IssuerMerchantOnce the card issuer has authorized transaction the credit card company is obligated to transfer the funds to the merchant If the cardholder is unable to pay loss is beared by the card issuer Merchant is paid regardlessCardholderMerchantRelationship isnt affected by the credit card company However if after payment and product is defective cardholder must consult with merchantoPayment By ChequeConditionally discharges a contractual debtIf cheque is not valid or if customers account is overdrafted than the original debt is revived and the merchant will look for customer for payment againoPayment By PayPalUsed to allow goodsservices to be purchased onlinerd3PPS3 party payment systemrdActs as a trusted 3 party to facilitate the transfer of funds from buyer to sellerNo one needs to disclose personal information to each otherTender of PerformanceSame principles apply like the tender of paymentDamages Are the amount of money that the court may order the defendant to pay to the plaintiffSubstantial PerformanceA tender is effective only if the goodsservices conform precisely to the terms on the contract
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