{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Business Law Chapter 17

Business Law Chapter 17 - Business Law Chapter 17...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Business Law Chapter 17 Performance and Discharge Discharge - Discharge – a party is discharged when they have no more duties under contract - Most contracts are discharged by full performance - Sometimes parties discharge a contract by agreement o Parties may agree to rescind a contract – to terminate contract – by mutual agreement Defenses that Discharge - Claims of commercial impractibility are difficult to win - The parties could decide that one person’s obligation/duties will be performed by someone else, a modification would now be called a NOVATION. Conditions - Parties put conditions in a contract – condition – an event that must occur before a party becomes obligated under contract. How conditions are created? Express Conditions - Parties may expressly create a condition – NO SPECIAL LANGUAGE is necessary to create condition; phrases such as “provided that” indicate a condition – but those words are not necessary as long as party INTENDED to create condition, it is enforceable in court. o Because informal language can create a condition, parties can contend if they intended it or not. Implied Conditions - At times party say nothing about a condition, but from their agreement they have implied one. o IE: A rents an apartment to B telling B that A will fix any problems. It is implied that B will notify A of any problems in the apartment. Types of Conditions
Background image of page 1

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

View Full Document Right Arrow Icon
- Courts divide conditional clauses into 3 categories – condition precedent, condition subsequent, and concurrent conditions o The key to all conditional clauses: if the condition does NOT occur, one party will probably will be discharged without performing - Condition Precedent- an event must occur BEFORE a duty arises - Condition Subsequent – condition must occur AFTER duty. If condition does not occur, duty is discharged. - Precedent/Subsequent Distinction – who cares? – the difference is important because it tells us WHO MUST PROVE whether the condition occurred. o In condition precedent the plaintiff has burden to prove that condition happened o In condition subsequent the defendant has burden to prove that condition happened - Concurrent Conditions – both parties have a duty to perform simultaneously. Each performance is the condition for the others performance - PUBLIC POLICY: at times a court will refuse to enforce express condition on the grounds that it is unfair and harmful to general public. Court might agree that parties created a condition clause, but conclude that permitting its enforcement would hurt society. Ex: pg 387 Performance - The more complex a contract, the more certain that at least one party will perform imperfectly -
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}