CHAPTER 19: CONTRACT PERFORMANCE, NONPERFORMANCE, AND DISCHARGE

1. CHAPTER 19: CONTRACT PERFORMANCE, NONPERFORMANCE, AND DISCHARGE

2. CHAPTER 19: CONTRACT PERFORMANCE, NONPERFORMANCE, AND DISCHARGE Learning Objectives: Types of Conditions Performance of Conditions Excuses for Nonperformance Discharge of Contracts Chapter 19

3. CONDITIONS • Definition: an act or event that triggers performance of a promise. • Types of Conditions: • Classifications as to when conditioning event must occur: • Condition Precedent: condition must occur before duty to perform arises. • Conditions Concurrent: performances must occur at the same time. • Conditions Subsequent: event discharges a duty to perform. Chapter 19

4. CONDITIONS • Definition: an act or event that triggers performance of a promise. • Types of Conditions: • Classifications as to when conditioning event must occur • Classifications as to the way they are created: • Express Conditions: stated in contract. • Constructive Conditions: imposed by the court. Chapter 19

5. PERFORMANCE OF CONDITIONS • Tender of Performance • Definition: offer to perform • Consequences if tender of payment is made • Substantial Performance • Definition: performance is considerable, with only shortcomings of a trivial nature. • Consequences: nonmaterial breach. Chapter 19

6. PERFORMANCE OF CONDITIONS • Divisibility: Installment Contracts • Anticipatory Repudiation • Definition: refusal to perform is stated before time of performance. • Result: non-repudiating party has an election of remedies. Chapter 19

7. EXCUSES FOR NONPERFORMANCE • Hindrance, Prevention, or Noncooperation • Waiver • Impossibility of Performance • Commercial Frustration • Commercial Impracticability Under the Code Chapter 19

8. DISCHARGE OF CONTRACTS • Methods • Payment • Accord and Satisfaction • Statute of Limitations Chapter 19

9. CHAPTER 19: CONTRACT PERFORMANCE, NONPERFORMANCE, AND DISCHARGE