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56 Cards in this Set
- Front
- Back
- 3rd side (hint)
The act of ending a contract.
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Discharge
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The act of ending a contract.
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Discharge
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When one party to a contract fails to perform the duties spelled out by the contract
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Breach of Contract
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When one party to a contract fails to perform the duties spelled out by the contract
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Breach of Contract
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What are the two ways that contracts can be discharged?
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1. Discharge by performance
2. Discharge by agreement |
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What are the two ways that contracts can be discharged?
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1. Discharge by performance
2. Discharge by agreement |
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How are the majority of contracts discharged?
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By performance
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How are the majority of contracts discharged?
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By performance
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A series of activities that fulfills the purpose of a contract
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Performance
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A series of activities that fulfills the purpose of a contract
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Performance
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The point at which all of the terms of the contract have been carried out properly by both parties.
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Complete or Strict Performance
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What are the 4 types of discharge by performance?
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1.Time for performance
2. Satisfactory performance 3.Substantial performance 4. Tender of performance |
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What if the contract does not state a specific time to complete performance?
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Courts will enforce “a reasonable time” period
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What are some examples of ''Time for performance"?
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Perishable items, holiday sales, tickets for events, hotel reservations on a specific date, courier or overnight services
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If time for performance is very important to the contract, the contract should include what words?
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“Tme is of the essence”
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In all contracts, the law requires that the services be performed in a ____________.
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Satisfactory manner
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In case of a dispute over what is considered "satisfactory," what test do the courts use to determine a verdict?
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“Reasonable Person Test”
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If the contract contains the words “to the other’s satisfaction”, do the court's usually apply the reasonable person test?
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No - the original party to the contract has to be satisfied in full before they are required to make payment.
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A situation in which a party has, in good faith, completed the major requirement of a contract, leaving only a few minor details unfinished.
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“Substantial Performance”
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What are the two ways a party can fulfill the terms of a contract?
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1. Performing an act
2. Paying Money |
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An additional offer to do what you have agreed to do under a contract.
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Tender of performance
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What are the four ways to discharge a contract by agreement?
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1. Discharge by Mutual
Rescission 2. Discharge by Novation 3. Discharge by Substituted Agreement 4. Discharge by Accord and Satisfaction |
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Occurs when parties cancel the contract and return themselves to the positions they occupied before the contract’s formation (as if the contract never took place.)
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Mutual Rescission (agreement)”
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Substitutes a new party for one of the original parties to the contract.
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Novation
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What are the four requirements of novation?
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1.Existence of a previous valid contract
2.Agreement by all parties to the new contract 3.Agreement to end the old contract by discharging the original party 4.Formation of a new, valid contract |
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A legal way to settle a dispute by which one party agrees to accept less than the amount due as full payment
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Accord and Satisfaction
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The acceptance by the creditor to accept less
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Accord
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the amount agreed to
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Satisfaction
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What are the two ways that contracts can be discharged involuntarily?
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1. By impossibility of performance
2. By operation of law |
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Refers to external conditions rather than an obligor’s personal inability to perform
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Impossibility of Performance
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What are some examples of "impossibility of performance?"
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1. Death or disability that prevents a personal service contract
2. Destruction of exact subject matter 3. Illegality |
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(True/False)
A contract is not discharged when unforeseen events make performance more costly or difficult. ( |
True;
these should be anticipated and allowed for in the contract) |
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A material change in the terms of a written contract without consent of the other party.
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Alteration
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Establishes a time limit for suing in a civil case, based on the date when the breach occurred or was discovered
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Statute of Limitations
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What is the statute of limitations in Illinois for
a) written contracts b) oral contracts |
Written Contracts: 10 years
Oral Contracts: 5 years |
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(True/False)
Parties may by contract shorten the period of the SOL but they may never extend it beyond the state’s limit |
True
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The transfer of rights under a contract that does not require the other parties permission is called a _________________.
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Assignment
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異見
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/(n) different opinion/objection/
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[いけん]
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The party who gets the rights in an assignment and are 3rd persons who were not part of the original contract
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Assignee
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Can a contract that is personal in nature or is a personal service contract be assigned?
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No
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Can rights be assigned if an assignment will increase or change the duties in an important way?
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No
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Do contract assignments need to be done in writing?
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No
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一同
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/(n) all present/all concerned/all of us/(P)/
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[いちどう]
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A deliberate deception intended to serve an unfair and unlawful gain
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Fraud
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This type of fraud takes the form of words/writings
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Express Misrepresentation
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What type of fraud is a lie that may also be actions a seller uses to hide or cover up a defect
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Misrepresentation by Conduct
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What type of fraud is an inaction when people don’t say anything when they should say something
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“Misrepresentation by Silence (Passive Fraud)”
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一帯
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/(n) a region/a zone/the whole place/(P)/
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[いったい]
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What is the remedy for negligent misrepresentation?
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1. The innocent party may rescind the contract
2. The innocent party will not be allowed to sue for damages |
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What are the 2 remedies for fraud?
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1.Rescind the contract and seek restoration of his/her position before the contract .
2. Enforce the contract and seek damages for injuries caused by the fraud. |
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Occurs when a person who is involved in contract negotiations says something that he or she believes to be true but it turns out to be false
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Misrepresentation
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An error on the part of one of the parties to the contract
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Unilateral Mistake
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What are the 2 types of unilateral mistakes?
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1. Mistake as to the Nature of the Agreement
2.Mistake as to Value |
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An error that is made on the part of both parties to the contract
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Bilateral Mistake
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A mistake may be made as to the possibility to perform (if the duty or performance cannot take place, the contract is ended
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Bilateral Mistake as to Performance
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営む
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/(v5m) to carry on (e.g. in ceremony)/to run a business/(P)/
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[いとなむ]
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