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.