Final Word List

Final Word List - Be familiar with conditions as they...

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Be familiar with “conditions ” as they relate to “time for performance” in a contract. Know the difference and use of express, implied in fact, concurrent, conditions precedent and conditions subsequent. - Condition Precedent - is a particular event that must occur in order for a party’s duty to arise. If the event does not occur, the party’s duty to perform does not arise. Ex. Insurance Contracts- If bill takes out life insurance and makes monthly payments- the insurance company’s obligation only arises if Bill dies - Condition Subsequent - is a future event that terminates the obligations of the parties when it occurs. EX: Tom rents an apartment for five years on the condition he isn’t called to active duty, he is, and obligation to be bound by the lease is discharged - Concurrent Condition - occurs when each party’s performance is conditioned on the performance of the other. The legal effect of a contract’s being concurrently conditioned is that each party must offer to perform before being able to sue the other for nonperformance Ex. Freddy agrees to pay for carrots upon their delivery—his duty to pay is implicitly conditioned on the seller’s duty to deliver the goods. - Express Conditions - are explicitly stated in the contract and are usually preceded by words such as conditioned on, if, provided that, or when. Ex. Offer sheet requires buyer makes $100 down payment upon acceptance. If the buyer accepts the offer but does not include payment there is no contract. - Implied Conditions - are those that are not explicitly stated but are inferred from the nature and language of the contract Ex. If you enter a contract with a builder to install new windows in your home, there is an implied condition that the builder will be given access to the home.
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Accord and Satisfaction – how and when is it used? (((At least 5 questions))) -Used when one of the parties wishes to substitute a different performance for his original duty under the contract. -The promise to perform the new duty = accord -Actual performance of that new duty = satisfaction ** Party’s duty under first contract not discharged until new duty performed -If the party that agrees on the new duty does not perform either duty …he can be sued for BOTH promises. Ex. Tom pays Jerry 5 dollars to wash his car—Jerry later calls Tom and tells him that he is allergic to water and cannot wash his car. The contract says Jerry is obligated to was the car and Tom says he is going to hold him to that and sue if he doesn’t. Tom decides to be nice and tells Jerry he will let him cut his grass for the 5 dollars instead -Tom’s obligation ($5) doesn’t change—But Jerry’s obligation does Accord= Tom’s agreement to let Jerry cut grass Satisfaction= When Jerry cuts grass **Jerry is discharged of his obligation when he cuts the grass—The only way him to get out is to complete the SECOND promise—if he fails to cut the grass he can be sued for both the first AND second agreements. ** In order for there to be satisfaction the substituted duty must have been performed.**
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This document was uploaded on 10/26/2011 for the course BLS 342 at Miami University.

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Final Word List - Be familiar with conditions as they...

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