Ch09-SG - ContractPerformance,Breach, andRemedies...

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Chapter 9 Contract Performance, Breach, and Remedies W HAT   THIS  C HAPTER  I S  A BOUT This chapter  begins with  a discussion  of performance  and  discharge  of contracts. Performance  of a contract  discharges it. Discharging a contract terminates it. Breach of contract is the failure to perform  what  a party is un der a  duty  to perform. When this happens, the nonbreaching  party can choose one or more remedies. C HAPTER  O UTLINE I. PERFORMANCE AND  DISCHARGE A. C ONDITIONS   OF  P ERFORMANCE condition  is a possible future  event, occurrence or nonoccurrence  of which  triggers performance  of an  obligation  or terminates an obligation. If performance is contingent  on a condition  and  it is not satisfied,  a party has to perform. 1. Condition Precedent `This  is a  condition  that  must  be  fulfilled  before  a  party’s  performance  can  be  required.    Such  conditions are common. 2. Condition Subsequent This is a condition  that operates to terminate an obligation  to perform.  The condition  follows a duty   to perform.  Such conditions are rare. 3. Concurrent Condition A concurrent  condition  exists when  each party’s duty  to perform  is conditioned  on the other’s duty   to perform.  This occurs  only when  the parties are to perform  simultaneously  (for example, paying   for goods on delivery). No party can recover for breach unless he or she first tenders performance. B. D ISCHARGE   BY  P ERFORMANCE Most contracts are discharged  by performance—the parties’ doing what  they promised  to do. 1. Tender of Performance Discharge  can be accomplished  by an unconditional  offer to perform  by one who  is ready,  willing,   and  able to do so. If the other party  then  refuses to perform, the party  making  the tender can sue for  breach. 2. Degree of Performance Required a. Complete Performance Express conditions fully occur in all aspects.  Any deviation operates as a discharge. b. Substantial Performance 67
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68 UNIT 3: THE PRIVATE ENVIRONMENT Performance  that  does  not  vary  greatly  from  the  performance  prom ised  in  the  contract.  The  other party is obligated  to perform  (but may obtain damages for the deviations).
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CHAPTER 9: CONTRACT PERFORMANCE, BREACH, AND REMEDIES 69 c. Performance to the Satisfaction of One of the Parties When  the subject matter  of the contract is personal, performance must  actually satisfy the party.  Contracts  involving  mechanical  fitness, utility, or marketability need  only  be performed  to the  satisfaction of a reasonable person. d.
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This note was uploaded on 12/20/2010 for the course BUS 100 taught by Professor Staff during the Fall '09 term at CSU Dominguez Hills.

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Ch09-SG - ContractPerformance,Breach, andRemedies...

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