Condition subsequent a condition that if fulfilled

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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 receive performance. 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.

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