Key Terms
Discharge
In contract law, the removal of all legal obligations under the agreement.
A defense of misrepresentation must be based on the misrepresentation of a material fact
True. A misrepresented fact must be material (affects the value of the contract or the party's obligations)
_____ is the ability of a properly formed contract to be enforceable in a court of law determined; by examining whether the contract is a product of Gen ascent and is in writing (under certain circumstances)
Enforceability
Breach
Condition that exists when one party has failed to perform their obligation under the contract. If the breach is material, the nonbreaching party is excused from their performance and can recover monetary damages.
In order for an email to meet the statute of frauds requirements, the email must contain the actual signatures of the parties
False. According to a majority of states, a name in the "from" field typically satisfies the signature requirement
_____ Is something that is important to the contract by being necessary and generally indispensable to the contract
Material
Good Faith
In contract law, the duty to honestly adhere to the contract’s common purpose. Under this obligation neither party can do anything to prevent the other party from enjoying the “fruits of the contract.” Instead, both must try to make the deal work as written.
When both parties agree to cancel a contract, this is known as discharge of obligations through accord and satisfaction
False. When both parties agree to cancel a contract, this is known as rescission
_____ Damages Are meant to make the injured party whole again. In contract law, they are an attempt to place the non-breaching party in the position they would have been had the contract been executed as agreed
Compensatory
Bankruptcy
A procedure by which a debtor’s assets are reorganized and liquidated by a court order to pay off creditors and free the debtor from obligations under existing contracts.
A statement by one party to a contract that they intend not to perform is sufficient to trigger anticipatory repudiation
True. A statement or action of the parties could lead to a reasonable person to believe that the party would not perform triggers an anticipatory repudiation
A remedy that restores to the plaintiff the value of the performance that they have already rendered to the breaching party and by which the breaching party has been unjustly enriched is called _____
Restitution
Clean Hands
An equitable doctrine whereby a party seeking to enforce a breach of contract against the opposing party must prove that they have no fault in causing the breach. Clean hands are shown by a person proving they are prepared to tender performance.
In a contract, a party that makes an assignment is substituting another party to perform any duties owed under the agreement
False. Party substituting another party to perform any duties owed under the agreement is called a delegation. Assignments are an assignment of current rights under a contract
A ___ - ____ _____ Is someone who, While not a party to the contract, stands to benefit from the existence of the contract
Third-party beneficiary