BUS 241 Ch 15 Substantial Performance

tender of performance

A _____________ relieves a contracting party of his or her obligation to perform

T

a consumer can terminate a contract made in the home with a door-to-door salesperson in 3 days

T

a consumer has 3 days to cancel a contract in which his or her home has been pledged as security

F

a contract must be completely performed in all its details in order to be considered terminated

specific performance

a court order directing a person to perform - or not perform - as he or she agreed to do in a contract

restraining order

a court order prohibiting the performance of a certain act. In some states the restraining order is temporary

material alteration

a deliberate change or alteration of an important element in a written contract that affects the rights or obligations of the parties

frustration of purpose

a doctrine stating that where both parties know the purpose of a contract and, through no fault of either party, the reason for the contract no longer exists, the contract is terminated

tender of payment

a money offer of payment of an obligation

F

a party to a contract is released from his or her obligations if a law is passed that increases the cost of performing the contract

injunction

a permanent court order prohibiting the performance of a certain act

liquidated damages clause

a statement wherein damages are explicitly set in the event one of the parties breaches an agreement

promissory note

a written promise to pay a specified sum of money

tender of performance

an offer to perform that is considered evidence of a party's willingness to fulfill the terms of the contract

tender of goods

an offer to provide the goods agreed upon that is considered evidence of a party's willingness to fulfill the terms of a contract

T

death or disabling illness of a party to a contract terminates the contract if such requires the particular skill or talent of the contracting party

mitigate

the obligation of the injured party to protect the other party from any unnecessary damages

anticipatory breach

when a party to a contract announces his or her intention to break the contract in the future

breach of contract

when a party to a contract refuses to perform as required by the contract or performs in an unsatisfactory manner

substantial performance

when a party to a contract, in good faith, executes all of the promised terms and conditions of the contract with the exception of minor details that don't affect the real intent of their agreement

impossibility of performance

when unforeseen circumstances make it impossible to fulfill the terms of a contract; in these cases the contract is considered void