Performing Contracts and Breach. What happens if a party does not perform to the satisfaction of another party to whom performance was owed?. OBE 118, Section 3 Fall 2004 Professor McKinsey. A Valid Enforceable Contract. Mutual Agreement Consideration Capacity Legality
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What happens if a party does not perform to the satisfaction of another party to whom performance was owed?
OBE 118, Section 3
Genuineness of Assent
Each enforceable promise in a valid enforceable contract creates a duty that must be discharged by performance, breach, agreement, or law.
Two types of promises:
Checklist for Substantial Performance
1. Exact performance called for not a material term.
_________________________ is usually enough.
2. Performance close to complete.
3. Substantially the same benefits created.
Performance of personal contracts can be specified to be to the satisfaction of a party.
Material breach occurs when performance is not substantial or when strict performance was called for and performance is not exact.
A material breach discharges the other party’s duty.
Party rejects, refuses, or denies performance and other party treats it as a breach.
Mutual Rescission –
Parties can agree to discharge one or more duties.
Accord and Satisfaction –
Statute of Limitations
The law can also discharge a duty by:
Death or disablement
Objective impossibility may discharge a duty
Party to a personal contract dies or becomes disabled
Destruction of Subject Matter
Must be the specific subject matter