Chapter 14 Questions

Chapter 14 Questions - Chapter 14 Questions 1. What does...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 14 Questions 1. What does the term reasonable time mean in the performance of a contract? A reasonable time is the time that may fairly, properly, and conveniently be required to do the task that is to be done with regard to attending circumstances. When the phrase “time is of the essence” is included among the terms of a written contract the time period will be enforced. Some contracts use a “best efforts” clause so as to not commit parties to a date but instead to commit them to do their best to perform by a specific date. A force majeure clause provides for the intervention of unforeseen circumstances. 2. What constitutes satisfactory performance of a contract? Satisfactory performance exists when either personal test or objective standards have determined that the contracting parties have performed their contractual duties according to the agreement. It is also an express or implied condition of every contract. 3. What is the difference between complete and substantial performance? Complete performance occurs when all the parties fully accomplish every term, condition and promise to which they agreed. Substantial performance occurs when a party in good faith, executes all promised terms, conditions with the exception of minor details that do not affect the real intent of their agreement. Complete performance terminates an agreement. Substantial performance involves the party receiving reimbursement for unfinished details. 4. What are the differences among conditions precedent, concurrent, and subsequent? A condition precedent is a condition that requires performance of certain acts or promises before the other party is obligated to pay money or five other consideration agreed to. A condition concurrent is a condition that requires both parties to perform at the same time. A condition subsequent involves one in which the parties agree that the contract will be
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Chapter 14 Questions - Chapter 14 Questions 1. What does...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online