LENB Discharge and remedies

Breach of Duty

A ______ occurs when a party fails to perform his or her obligations under a contract.

precedent

A condition ______ is a particular event that must occur for a party's duty to arise.

reformation

A court may order a(n) ______ of a written contract if the contract does not reflect the parties' actual agreement and needs to be rewritten.

The contract between the plaintiff and the defendant was for the sale of goods valued at $500 or more.

A plaintiff must prove all but which of the following in order to recover equitable relief?

The plaintiff was forced into the contract due to economic duress.

A plaintiff must prove all but which of the following in order to recover equitable relief?

injunction

A preliminary ______ fulfills the purpose of maintaining the status quo until a case can be finally decided.

objective

A subsequent illegality involving a contract results in ______ impossibility.

accord; satisfaction

A(n) ______ and ______ is used when one of the parties wants to substitute a different performance for his original duty under the contract.

material

A(n) ______ breach of contract occurs when a party unjustifiably fails to perform his obligations substantially under the contract.

injunction

A(n) ______ is an order either forcing a person to do something or prohibiting a person from doing something.

covenant

A(n) ________ is a promise that parties are legally required to perform under a contract.

The party claiming discharge was the victim of undue influence.

According to the Restatement (Second) of Contracts, discharge by reason of commercial impracticability requires the party claiming the discharge to prove all but which of the following?

impracticability

Commercial ______ arises when, because of an unforeseeable event, one party would incur unreasonable expense, injury, or loss if that party were forced to carry out the terms of the agreement.

impracticability

Commercial ______ is used when performance is still objectively possible but would be extraordinarily injurious or expensive to one party.

foreseeable

Consequential damages are ______ damages that result from special facts and circumstances arising outside the contract itself.

performance

Contracted parties discharge their obligations by doing what they respectively agreed to do under the terms of an agreement; this is called discharge by ______.

mutual rescission

Contracted parties may agree that they simply wish to discharge each other from their mutual obligations and therefore cancel the contract. This is known as ______.

Conditional

Contracts containing conditions affecting the performance obligations of the parties in a contract are called ______ contracts.

implied; expressly

Contractual conditions may be either ______ by law or ______ inserted into a contract by the parties in the contract.

liquidated

Damages specified as a term of the contract, before a breach of contract occurs, are known as ______ damages.

objective

Destruction of a contract's subject matter due to no fault of the parties constitutes ______ impossibility.

the contracting party's duty to perform does not arise

If a condition precedent does not occur when discharging a contract, ______.

anticipatory repudiation

If a contracting party decides, before the actual time for performance arises, not to fulfill her obligations under the contract and announces her intentions to the other party, a(n) ______ has occurred.

implied

If a homeowner enters into a contract with a builder to replace the windows in his house, there is a(n) ______ condition that the builder will be allowed to enter the house to complete the window removal and installation.

terminated

If a seller, without the knowledge of the buyer, changes the price of the contract, the buyer can treat the contract as ______.

impossibility of performance

If an unforeseen event occurs that makes it physically or legally impossible for a party to carry out the terms of a contract, the parties will be discharged due to ______.

nominal

If no actual damages resulted from a breach of contract, the court may award the plaintiff ______ damages.

discharged

If the court applies the frustration of purpose doctrine, the contract is ______.

mitigate

If you are the manager of a hotel and a person who booked a room for the week calls to cancel the reservation, you have a duty to attempt to rent the room to someone else to minimize the damages. This is known as the duty to ______ damages.

has tendered performance upon arrival at the house

If, consistent with his contractual duty, a painter shows up at a home with his paint and ladder and is ready to begin painting the garage, he _____.

incidental

In addition to losing the benefit of a bargain, a plaintiff may suffer other losses caused directly by a breach. These losses may be compensated as ______ damages.

accord; satisfaction

In an accord and satisfaction, the promise to perform the new duty is called the ______, and the actual performance of that new duty is called the ______.

discharged

In bankruptcy, once the bankrupt's assets have been distributed to his or her creditors, the bankrupt's debts are ______.

express

In the context of discharging a contract, ______ conditions are explicitly stated in the contract.

implied

In the context of discharging a contract, ______ conditions are those that are not explicitly stated but are inferred from the nature and language of the contract.

concurrent

In the context of discharging a contract, ______ conditions occur when each party's performance is conditioned on the performance of the other.

subsequent

In the context of discharging a contract, a condition ______ is a future event that terminates the obligations of the parties when it occurs.

objective

In the context of impossibility of performance, ______ impossibility means it is in fact not possible to lawfully carry out one's contractual obligations.

subjective

In the context of impossibility of performance, ______ impossibility means it would be very difficult to carry out a contract.

nominal

In the context of legal remedies, a court awards a plaintiff $1. This is most likely indicative of ______ damages.

It does not discharge the parties' obligations under a contract.

In the context of the discharge of a contract by law, which of the following is an accurate statement regarding subjective impossibility of performance?

The parties to the contract will be discharged.

In the context of the discharge of contracts by law, what is the legal effect of impossibility of performance?

substantial

In the context of the discharge of contracts, ______ performance occurs when nearly all the terms of an agreement have been met, there has been an honest effort to complete all of the terms, and there has been no willful departure from the terms of the agreement.

perfect performance

In the context of the discharge of contracts, which of the following is required for complete performance?

subsequent

John enters into an agreement to lease an apartment for five years, conditioned on him not being called to active duty in the National Guard. If he is called to serve, this is a condition ______, and his obligation to be bound by the lease is discharged.

legal

Monetary damages for a breach of contract are also known as ______ damages.

tender

Parties can discharge their contractual duty by making an offer to perform and being ready, willing, and able to perform. This offer of performance is known as ______.

novation

Sometimes the parties to an agreement want to replace one of the parties with a third party. This substitution of a party is called a(n) ______.

substituted

Sometimes, instead of canceling a contract and terminating their relationship, the parties in the contract want to replace the old contract with a new one. In such a situation, the new contract is a(n) ______ contract.

appropriate

Specific Performance was historically _________ in contracts for the sale of real estate.

performance

Specific ______ is an order requiring the breaching party to fulfill the terms of an agreement.

enforcement

Specific performance is also called specific ______.

mutual rescission

Suppose James agreed to cater a reception for Bill's son, but it appears that the child is not going to graduate when planned. James agrees not to hold Bill responsible for paying him the agreed-upon cost for catering in exchange for Bill's agreement not to expect James to cater the reception; this is known as a(n) ______.

incidental

Suppose Jeremy was illegally terminated by his employer before his employment contract term was complete. If Jeremy has to spend money to find another job, such expenditures would be considered ______ damages.

tolling

The ______ of the statute of limitations is the expiration of the time allowed by the statute.

Uniform Commercial Code

The calculation of damages on a contract for sale of goods is governed by the __________.

objective

The death or incapacity of a party whose personal services are necessary to fulfill the terms of the contract constitutes ______ impossibility.

compensatory

The most frequently awarded damages are ______ damages.

mitigate

To recover damages in a breach-of-contract case, the plaintiff must demonstrate that he or she used reasonable efforts to ______ the damage resulting from the defendant's breach.

It discharges a nonbreaching party from his obligations under the contract.

What is the legal effect of a material breach of contract?

It may entitle a nonbreaching party to damages, but it does not discharge the nonbreaching party from the contract.

What is the legal effect of a minor breach of contract?

contract is discharged

What is the legal effect of a subsequent illegality involving a contract?

The new contract discharges the parties from their obligations under the old contract and replaces them with obligations imposed by the new contract.

What is the legal effect of a substituted contract?

The contract is discharged.

What is the legal effect of the death or incapacity of a party whose personal services are necessary to fulfill the terms of the contract?

Both parties are discharged from their contract obligations.

What is the legal effect of the destruction of a contract's subject matter due to no fault of the parties?

discharge

When a party files bankruptcy, the court allocates the assets of the bankrupt among the bankrupt's creditors and then issues the party a(n) ______ in bankruptcy.

discharged

When a party's obligations under a contract are terminated they are said to be _______.

concurrent

When each party's performance is conditioned on the performance of the other, the conditions are ______.

England

Where did the frustration of purpose doctrine originate?

the Restatement (Second) of Contracts

Which of the following addresses contractual discharge by reason of commercial impracticability?

All three parties (the original contracting parties and the third party) must agree to a novation for it to be valid.

Which of the following is an accurate statement regarding a novation in the context of the discharge of contracts by mutual agreement?

The alteration must be material for the innocent party to be discharged from the contract.

Which of the following is an accurate statement regarding contract alteration by one of the parties to an agreement?

Both legal remedies and equitable remedies are potentially available in a breach of contract action.

Which of the following is an accurate statement regarding legal remedies and equitable remedies for a breach of contract?

It discharges the parties' obligations under a contract.

Which of the following is an accurate statement regarding objective impossibility?

Once the statute of limitations has tolled, neither party can any longer sue the other for a breach of contract.

Which of the following is an accurate statement regarding the tolling of the statute of limitations and contract enforcement?

Equitable remedies and legal remedies are known as money damages.

Which of the following is an incorrect statement regarding legal remedies and equitable remedies for a breach of contract?

When a judgment involved is a matter of personal taste, courts apply an objective satisfaction standard.

Which of the following is an incorrect statement regarding performance subject to the satisfaction of a contracting party?

The nonbreaching party is still required to perform his obligations under the contract and can then sue the other party for breach.

Which of the following is an incorrect statement regarding the rights of a nonbreaching party in a contract after anticipatory repudiation?

Contractual satisfaction is considered an implied condition that must be met before the other party's obligation to pay for the performance arises.

Which of the following is an incorrect statement when the performance of a contract is subject to the satisfaction of a contracting party?

Transitional

Which of the following is not a category of monetary damages for a breach of contract?

transitional

Which of the following is not a category of monetary damages for a breach of contract?

The potential quality of a court-appointed attorney if the plaintiff cannot afford legal representation

Which of the following is not a factor a party should consider before filing suit for a breach of contract?

the likelihood that the court will mandate binding arbitration in lieu of a trial

Which of the following is not a factor a party should consider before filing suit for a breach of contract?

discord and inaction

Which of the following is not a recognized means by which parties to a contract can agree to discharge each other from their obligations?

tolling of the Statute of Limitations

Which of the following is not a recognized means by which parties to a contract can agree to discharge each other from their obligations?

temporary impossibility

Which of the following is not a recognized situation in which a contract may be discharged by operation of law?

unilateral mistake of fact

Which of the following is not a recognized situation in which a contract may be discharged by operation of law?

the wealth of a plaintiff

Which of the following is not a relevant factor in determining the appropriate amount of punitive damages?

parol evidence justifying substantial performance instead of complete performance

Which of the following is not a required element for substantial performance?

performance

Which of the following is the most common situation resulting in the discharge of a contract?

rescission

Which of the following represents termination of a contract?

non breaching

With an anticipatory breach the _______ party is discharged from the contract.

Express

______ conditions are usually preceded by words such as conditioned on, if, provided that, or when.

Consequential

______ damages are also known as special damages.

Punitive

______ damages are designed to punish the defendant and deter him and others from engaging in similar behavior in the future.

Compensatory

______ damages are designed to put a plaintiff in the position he would have been in had the contract been fully performed.

Liquidated

______ damages may be specified in a contract as either a fixed amount or a formula for determining how much money is due.

Rescission

______ is the termination of a contract.

Complete

______ performance occurs when every aspect of the parties' duties under a contract is carried out perfectly.