CHAPTER 6 REVIEW 6.1: HOW TO END A CONTRACT 6.2: VOIDABLE CONTRACTS AND REMEDIES

ENDING A CONTRACT  1. By Performance 1. Time (reasonable time) 2. Satisfactory 3. Substantial (construction) 4. Tender of performance- doing what you agreed to do  2. By Agreement: Mutual Agreement

INVOLUNTARY DISCHARGE 1.Discharge by impossibility of Performance 1.Death, illness, destruction of subject matter 2.Discharge by operation of law 1.Wrongful Alteration of contract 2.Statue of limitation 3.Debt and Statutes of Limitation 4.Bankruptcy

TRANSFER OF RIGHTS AND DUTIES  Assignment  Transfer of rights to someone else  Assignor: person who transfers the rights  Assignee: party who gets the rights  Assignments should be in writing  Most rights may be assigned unless the assignment changes the obligation of the other party to the contract in an important way

DELEGATION AND TRANSFER OF DUTIES  Delegation  Transferring of a duty under a contract  Responsibility still belongs to original party!  When duties cannot be delegated:  One party agrees to perform service personally  Contract calls for the exercise of personal skill  Contract prohibits delegation

CHAPTER 6.2 VOIDABLE CONTRACTS AND REMEDIES

FRAUD 1.Lie 2.Person who lied, knows it’s a lie 3.Lie made with intent to be relied upon 4.Innocent party DOES rely upon it 5.Innocent party experiences loss *Person intentionally failing to reveal an important fact is committing concealment

INNOCENT MISREPRESENTATION  Person negotiating contract says something they believe to be true, but it is not true.  Person has right to get out of contract

MISTAKE  Unilateral  One party makes mistake  Usually cant get out of contract  Bilateral  Both parties make a mistake  Mutual Mistake  Usually CAN get out of contract

DURESS Physical Duress Actual Force= Void Threat of Force= Voidable Economic Duress 1. Party placed in poor economic condition 2. Victim had not choice but to submit to duress 3. Submission was reasonable under circumstance

UNDUE INFLUENCE Pressure to enter into a contract by someone of power who will benefit 1. Caregiver-type relationship 2. Caregiver pressures innocent party 3. Contract favors caregiver

REMEDIES 1.Accept breach 1.Best option if no damage has occurred 2.Sue for money damages- covers loss that occurred 1.Punitive Damages- goes beyond loss and punishes wrongdoer 3.Equitable Remedies 1.Specific Performance- orders a person to do what they said they’d do in contract 2.Injunction- prevents party from performing act