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.
2.
3.
4.
Wrongful Alteration of contract
Statue of limitation
Debt and Statutes of Limitation
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