Chapter 10 Contract Performance, Breach, and Remedies

frustration of purpose

a theory closely allied with the doctrine of commercial impracticability.

impossibility of performance

after a contract has been made, supervening events (such as fire) may make performance impossible in an objective sense.

anticipatory repudiation

before either party to a contract has a duty to perform, one of the parties may refuse to carry out his or her contractual obligations.

compensatory damages

damages that compensate the non-breaching party for the loss of the bargain.

consequential damages

foreseeable damages that result form a party's breach of contract.

reformation

is an equitable remedy used when the parties have imperfectly expressed their agreement in writing.

breach of contract

nonperformance of a contractual duty.

novation

occurs when both of the parties to a contract agree to substitute a third party for one of the original parties.

condition

possible future event, the occurrence or nonoccurrence of which will trigger the performance of a legal obligation or terminate an existing obligation under a contract.

waiver

relinquishment of a legal right (that is, the right to require satisfactory and full performance).

mitigation of damages

the duty owed depends on the nature of the contract.

specific performance

the performance of the act promised in the contract.

restitution

to rescind a contract, both parties must make *** to each other by returning goods, property, or funds previously conveyed.

mutual rescission

to take place, the parties must make another agreement that also satisfies the legal requirements for a contract.

Tender

unconditional offer to perform by a person who is ready, willing, and able to do so.

commercial impracticability

when a supervening event does not render performance objectively impossible but does make it much more difficult or expensive to perform than the parties originally contemplated, the courts may excuse the parties' obligations under the contract.

discharge in bankruptcy

will ordinarily bar enforcement of most of the debtor's contracts by the creditors.