Exam 18: Discharge of Contracts

The parties may decide that their contract is not the one they want. They may then replace it with another contract. If they do, the original contract is discharged by __________.

Contracts may be discharged by the joint action of both contracting parties or, in some cases, by the action of one party alone.

Unless a contract so provides, time is ordinarily not of the essence, and performance within a reasonable time is sufficient.

Generally, contracts are discharged by the performance of the terms of the contract.

A discharge by agreement can occur in any of the following situations except:A discharge by agreement can occur in any of the following situations except:

The phrase "time is of the essence" means that:

If the parties to a contract agree to undo the agreement and return any consideration involved, the contract is discharged by:

A seller's inability to obtain from any supplier the goods called for by the contract generally discharges the contract for impossibility of performance.

A condition subsequent can alter but not terminate a contract.

There is no exact standard or test by which to determine whether contractual performance is substantial.

A condition precedent must occur before a party to a contract has an obligation to perform.

A discharge by operation of law occurs in all of the following situations except:

When performance is impeded due to the occurrence of an event whose nonoccurrence was a basic assumption of the contract, the contract may be discharged on the grounds of:

A party who in good faith has provided substandard performance of a contract may sue to recover the payment specified in the contract.

A typical situation where the doctrine of economic frustration applies is when the party suffers a loss when a gain was expected.

A homeowner who refinances her home mortgage may cancel the transaction:

For the parties to enter into an accord and satisfaction that discharges the original obligation, there must be a bona fide dispute.