Your assets will be assessed and the money will be

Info icon This preview shows pages 12–15. Sign up to view the full content.

View Full Document Right Arrow Icon
Will excuse the party to some extent.  Your assets will be assessed. And the money will  be dispersed based on what is more important When Performance is Impossible Objective Impossibly: supervening event was not foreseeable Ex. Oil driller has promised 10,000 barrels to a distributor.  All of a sudden there is a  natural disaster that hits the rig.  It becomes impossible to run your company.  This  circumstance becomes impossible. WHEN IT INVOLVES MOTHER NATURE, THE  PERFORANCE IS IMPOSSIBLE Ex. If you enter into a contract but the law then does not permit it, the contract is void Death or incapacitation in personal contract prior to performance Destruction of the Subject Matter Change in law makes contract illegal Has to be reasonable Temporary Impossibility If it is extremely difficult, and one would need to hand over a ton of money to perform  the contract obligations, the contract will be temporarily impossible Commercial Impracticability: Performance becomes extremely difficult or costly, and not have been known by parties  when contract made
Image of page 12

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Frustration of Purpose: Supervening event make it impossible to attain purpose both parties had in mind  Event must not have been reasonably foreseeable, and decreases value of what a  party receives under contract Ex. You were to build a mall on a piece of land.  But it has been used as a dumping site.  Now the land is not useable.  You will be excused from buying the land.   Breach and Remedy Damages Compensatory Damages-  designed to compensate non-breaching party for loss of the  bargain Ex. You are buying PC’s for the COB.  You are buying 1,000 computers for $10.  You tell  the company you need the computers right after thanksgiving.  But the delivery is not  made.  They have breached the agreement.  You haven’t paid them yet.  You then find  another vender who will get you the computers today, but each computer $1,200.  The  buyer will be compensated for the loss.  The breaching contractor will pay the extra  $2,000 Damages actually sustained (out-of-pocket), directly arising from breach. Standard Measure:  difference between value of promised performance and value of  actual performance.   Incidental Damages : expenses cause directly by   breach of contract. Measurement of Damages: Sale of Goods: difference between contract and market price. Sale of Land: specific performance. Construction Contracts.  ***ANYTHING OF COST OVER AND ABOVE THE CONTRACT*** Breaching party is aware or should be aware, cause the injury party additional loss
Image of page 13
EX. A mill that grinds wheat into flour.  The crank shaft broke, and the mill cannot work.  The delivery service was to take the crank shaft to be fixed.  Most mils in those days 
Image of page 14

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 15
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern