Chapter 15 Notes - 2

Chapter 15 Notes - 2 - either party o Objective...

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Ch. 15 Discharge by Agreement Discharge by mutual rescission – an agreement between the parties to cancel their contract o They must agree to another contract (with offer, acceptance, consideration) For common law, can be non-written. For UCC, must be written Discharge by novation o Novation – the substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated The existence of a previous, valid obligation Agreement by all of the parties to a new contract The extinguishing of the old obligation A new, valid contract Discharge by accord and satisfaction o Accord – executory contract to perform an act to satisfy an existing duty Discharge by Operation of Law Material alteration Statutes of limitations o Oral: 2-3 years o Written: 4-5 years Bankruptcy Impossibility of performance – a doctrine under which a party is relieved of his or her duty to perform when performance becomes objectively impossible (through no fault of
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Unformatted text preview: either party) o Objective impossibility When a party whose personal performance is essential dies or becomes incapacitated When the subject matter of the contract is destroyed When a change in the law renders performance illegal o Temporary impossibility • Commercial impracticability – a doctrine under which a seller may be excused from performing a contract when (1) a contingency occurs, (2) the contingency’s occurrence makes performance impracticable, (3) the nonoccurrence of the contingency was a basic assumption o Must show the anticipated performance would be extremely difficult or costly • Frustration of Purpose – a court-created doctrine under which a party to a contract will be relieved when the objective purpose for performance no longer exists (due to reasons beyond that party’s control)...
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