buslaw14-discharge and remedies

8/9/2019 Buslaw14-Discharge and Remedies

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1. Compare the different ways that time forperformance of a contract is enforced bythe courts.

2. Describe the standards that are used to

determine whether or not the performance

of a contract is satisfactory.

3. Contrast complete performance with

substantial performance.

DISCHARGE AND

REMEDIES

Chapter Outcomes:

Chapter 14


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4. Explain the importance of making tender of

performance and tender of payment.

5. Discuss the four ways that contracts are

discharged.6. Identify the remedies that are available to an

injured party when a contract is breached.

DISCHARGE AND

REMEDIES

Chapter 14

Chapter Outcomes (continued):


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Discharge by Performance

1414--11

Time for Performance

Satisfaction of Performance

Complete and Substantial

Performance

Contractual Conditions

Tender of Performance


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A Question of Ethics

The court held Kent to the contract in

Example 14-1 even though Lang Printing

Company had technically breached its

agreement by being four days late in

supplying the new letterhead. Even

though it followed the law, was thecourts decision ethical? Explain?

1414--11


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1414--11

1. When the contract states the

time for performance, but

nothing indicates that time is

important, the court may allow

additional time to perform.

Topic Quiz

TRUE

Answer the following true/false questions:


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1414--11

2. It is known as substantial performance

when both parties fully accomplish

every term, condition, and promise that

was agreed upon.

Topic Quiz

FALSE


Execution of all except for minor details

needing to be worked out.


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1414--11

3. Tender of performance is

necessary to test the other

partys willingness and ability

to perform.

Topic Quiz

TRUE



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Discharge by Nonperformance

Discharge by Agreement

Discharge by Impossibility

Discharge by Operation of LawDischarge by Breach of Contract

1414--22


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1414--22

1. A contract would be

discharged by impossibilitywhen the subject matter of the

contract had been destroyed

without the parties knowledgebefore the contract was

entered into.

Topic Quiz

TRUE



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1414--22

2. Most contractual obligations to

pay money come to an end by

operation of law when a party

files for bankruptcy.

Topic Quiz

TRUE



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1414--22

3. When time is of the essence,there is a breach of contract if

performance is not completed

within the time limits agreed toby the parties.

Topic Quiz

TRUE



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Remedies

Damages

Mitigation of Damages

Equitable Remedies

1414--33


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LawLINKS

Chapter 14Chapter 14

Log ontoKerris Crazy Bar Review Notes and

read about remedies at

http://www.chenoweth.cnchost.com/shiningc/

bar/5remedies/tl-damages.htm


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LawLINKS

Chapter 14Chapter 14

Refer to

http://www.silverlink.net/donowen/Liquid.html

foran interesting article about liquidated

damages.


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1414--33

1. Incidental damages are also called

consequential damages.

Topic Quiz

FALSE


They are differential damages.


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1414--33

2. Speculative damages may be awarded

for present injuries and for others that

might reasonably be anticipated in the

future.

Topic Quiz

FALSE


They are disallowed by courts.


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1414--33

3. When a contract is breached, the

injured party has no obligation tomitigate damages.

Topic Quiz

FALSE


The injured party must exercise

reasonable precautions.


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1414--11 Most contracts are discharged by performance,

which means that the parties do what they

agreed to do.

Nonperformance can also dischargecontractual obligations.

1414--22

SUMMARY

1414--33 A breach of contract relieves the injured partyfrom any obligation under the contract.


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Chapter 14Chapter 14Key Terms

abandonment of contractual obligations

actual damages anticipatory breach

compensatory damages complete performance

condition concurrent condition precedent

condition subsequent consequential damages

frustration-of-purpose doctrine

general release incidental damages

liquidated damages mutual rescission

nominal damages performance

punitive damages reasonable time

satisf

actory perform

ance specific perform

ance


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Investigating on the Internet

Chapter14Chapter14

Discover whether punitive damages are

insurable in your state by going to

http://www.mcandl.com/puni_states.html


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End of Presentation

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