13.1 b a c kn e x t h o m e Chapter 13 Objectives u Describe the requirements for terminating a contract by performance. u Recognize the circumstances that discharge a contract by operation of law. u Explain what breach of contract is and the potential remedies for breach. © 2002 West Educational PublishingTo accompany Law for Business, 14e, by Ashcroft and Ashcroft

13.2 b a c kn e x t h o m e Termination of Contracts Performance of the contract Performance of the contract Operation of the law Operation of the law Voluntary agreement of the parties Voluntary agreement of the parties Acceptance of a breach of contract Acceptance of a breach of contract Impossibility of performance Impossibility of performance

13.3 b a c kn e x t h o m e Termination of Contracts by Performance 1. Time of performance performance 2. Tender of performance performance 3. Tender of payment payment 5. Substantial performance performance 4. Satisfactory performance performance Explain each of the following factors that determine whether there has been performance: Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss

13.4 b a c kn e x t h o m e Discharge by Operation of the Law u Bankruptcy u Running of the statute of limitations u Alteration of written contracts u Impossibility of performance Contract

13.5 b a c kn e x t h o m e Discharge by Impossibility of Performance u Destruction of the subject matter u New laws making the contract illegal u Death or incapacity of person to render personal services u Acts of other parties Contract

13.6 b a c kn e x t h o m e Remedies for Breach of Contract u Suit for damages u Nominal damages u Compensatory damages u Punitive damages u Liquidated damages u Suit to rescind the contract u Suit for specific performance