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What are the specific rules that govern payments?
1. Debtor has the primary obligation of locating the creditor and tendering(offering) payment even if the creditor has not asked for it.
2. Creditor can insist on recieving legal tender, unless a contract says otherwise.
3. Debtor does not have to actually tender payment if it would obviously be refused.
What is legal tender?
Payment of notes(bills) and coins to a certain value.
What is an advantage to paying by money?
It is absolute.
What is a disadvantage to paying by money?
It is risky. Can be lost, or stolen.
What are damages?
The amount of money that the court may order the defendant to pay the plaintiff.
What is substantial performance?
Generally stisifies the contract but is defective ot incomplete in some minor way.
What is an entire contract?
No part of the price is payable unless all of the work is done.
What is recession?
When the parties agree to bring their contract to an end.
When is a contract executory?
If a party has not fully performed its obligations.
When is a contract executed?
When a party has fully performed its obligations.
What is accord and satisfaction?
When a party gives up its right to demand contractual perfromance in return for some new benefit.
What is a release?
An agreement under seal to discharge a contract.
What is a variation?
Involves an agreement to vary the terms of an existing contract. Fresh considerstion on both sides.
What is novation?
A process in which one contract is discharged and replaced with another.
What are several important things about novation?
1. Cannot occur unless all of the affected parties consent to the new arrangement.
2. The agreement to discharge the old contract is supported by consideration.
3. The agreement should always be clearly written.
What is a waiver?
When a party abendons a right to insist on contractual performance.
What are several important things about a waiver?
1. Does not require consideration or seal.
2. Does not take particular form.
3. Courts require clear evidence that the other party intended to waive its rights.
4. Waiver is effective only if the party who recieved that waiver relied upon it.
5. A party can retract its own waiver if it gives reasonable notice of its intention and if reatraction is not unfair to the other party.
What is a condition?
A term is a condition if the innocent party would be substainally deprived of the expected benefit of the contract if a breach occured. Breach of a condition does not automactically discharge a contract. The right to discharge lives with the innocent party.
What is a warranty?
A term is a warranty if the innocent party would not be substantially deprived of the expected benefit of the contract if a breach occured.
What is an intermediate?
A term is an intermediate if, depending upon the circumstances, the innocent party may or may not be substanially deprived of the expected contract in the event of the breach.
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