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Unformatted text preview: ll perform to another’s
personal satisfaction. assignment The transfer of benefits or
rights under a contract to a third party. condition precedent A condition that
must be fulfilled before there is liability on
a contract. assignor The person making an
assignment. condition subsequent A condition that if
fulfilled will end liability on a contract. commercial impracticability Where an
unforeseen event makes it exceedingly
difficult or costly to perform a contract, the
contract may be discharged. creditor beneficiary An intended beneficiary who receives the benefit because it is
legally owed, who acquires both the right
to sue in the event of a breach and the right
to prevent the parties from modifying the
contract. rog80328_06_c06_111-133.indd 132 10/26/12 5:37 PM Section 6.4 Chapter Summary CHAPTER 6 delegatee A third person who undertakes
duties on a contract he was not a party to. liquidated damages Damages that are
stated in a contract. delegation Transfer of duties on a contract
to a third party. nominal damages A very small award,
such as $1, used when a party has proven
his cause of action but has not sustained
economic loss. delegator The person who transfers duties
on a contract to a third party.
doctrine of substantial performance
A legal doctrine indicating that the plaintiff may recover the contract price from
the defendant—minus the cost of any
damages caused by the plaintiff’s own
break—regardless of a minor contractual
breach if the plaintiff can show that he or
she substantially performed the contract
in good faith.
donee beneficiary A person who receives
an intended benefit as a gift. A donee has
the right to sue for breach of contract but
cannot prevent the parties from modifying
or rescinding the contract.
frustration of purpose Where a contract
is discharged due to an unforeseen event
that means there is no longer a reason to
perform the contract.
intended beneficiary A person for whose
benefit the contract was made, who
acquires the right to sue for breach. rog80328_06_c06_111-133.indd 133 novation An agreement to release one
party from a contract and instead look to a
third person to perform.
obligee A person who is entitled to
obligor A person who is obligated to provide a benefit or render performance.
punitive damages A monetary award
designed to punish a defendant for intentional, egregious conduct.
release Giving up legal rights (also known
as a waiver).
rescission Cancellation of a contract.
specific performance A remedy for breach
of contract that forces the breaching party
to actually perform the contract; granted
only in cases of unique consideration.
time is of the essence A phrase in a contract that makes lateness a material breach. 10/26/12 5:37 PM...
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This test prep was uploaded on 04/09/2014 for the course BUS 311 taught by Professor Parker during the Spring '10 term at Ashford University.
- Spring '10
- Business Law