Performance and Discharge

Performance and Discharge - On the Road to Conclusion...

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Unformatted text preview: On the Road to Conclusion . . . Performance and Discharge Discharge • Process by which parties are released from further liability under the contract • Keep in mind concept of termination Types of Discharge • Conditions • Performance (or lack thereof) • Lawful Excuses • Operation of Law Discharge • A party is discharged when she has no more duties under a contract. • Most contracts are discharged by full performance. • Sometimes the parties discharge a contract by agreement. • Rescind means that they terminate it by mutual agreement. Conditions • Concept of conditions • something must happen before anyone has to perform a contract, or • if something happens, then no one has to do anything under a contract Conditions A condition is an event that must occur before a party becomes obligated under a contract. Types of Conditions • Condition Precedent • Must occur before a duty arises. • Condition Subsequent • Must occur after the particular duty arises. • Concurrent Conditions • Certain things must occur simultaneously. Conditions – how created • Express Conditions -- No special language is necessary to create the condition, but it must be stated clearly somehow. • Implied Conditions – The condition is not stated, but is clear from the agreement. Commercial Union Insurance Co. (CU) insured Redux, Ltd. The contract made CU liable for fire damage, but stated that the insurer would not pay for harm caused by criminal acts of any Redux employees. Fire destroyed Redux’s property. CU claimed that the “criminal acts” clause was a condition precedent, but Redux asserted it was a condition subsequent. was a condition subsequent....
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This note was uploaded on 04/09/2012 for the course BA 3301 taught by Professor Stanb during the Spring '09 term at University of Houston - Downtown.

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Performance and Discharge - On the Road to Conclusion...

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