Breach and discharge Bar Exam Flashcards - Medical Study Cards
Master Breach and discharge with Oncourse flashcards. These spaced repetition flashcards are designed for medical students preparing for NEET PG, USMLE Step 1, USMLE Step 2, MBBS exams, and other medical licensing examinations.
Breach and discharge Flashcard Deck - 10 Cards
Flashcard 1: What are the elements of discharge by frustration of purpose?
Answer: The principal purpose of the contract must be substantially frustrated by an unforeseeable event, the frustrated purpose must have been understood by both parties, and the party seeking discharge must not have assumed the risk. The affected party may be discharged from remaining duties.
Flashcard 2: When may a repudiating party retract the repudiation?
Answer: Under the Restatement majority rule, retraction is permitted before the repudiation substantially changes the other party’s position, the other party indicates that the repudiation is final, or the other party cancels or materially relies on it. The retraction must clearly indicate an intent to perform.
Flashcard 3: What is the effect of a material breach under the common-law substantial-performance doctrine?
Answer: A material breach excuses the other party’s remaining performance obligations and permits termination, subject to the breaching party’s right to cure when appropriate. A nonmaterial breach does not excuse performance but may support damages.
Flashcard 4: What is anticipatory repudiation?
Answer: Anticipatory repudiation is a clear, unequivocal statement or voluntary act showing that a party will not perform a future contractual duty when due. The nonrepudiating party may treat it as a total breach and pursue available remedies.
Flashcard 5: How can the parties discharge contractual duties by agreement?
Answer: A mutual rescission discharges a contract when both parties agree to cancel it, generally requiring consideration if duties remain on only one side. A novation substitutes a new party or obligation and discharges the original party only when the required parties agree to the substitution.
Flashcard 6: What is substantial performance, and what is its effect?
Answer: Substantial performance occurs when a party has performed in good faith and met the contract’s essential purpose despite minor defects. The performing party may recover the contract price minus damages for the deficiencies.
Flashcard 7: What is an accord and satisfaction, and how does it discharge a contract?
Answer: An accord is an agreement to accept substituted performance in satisfaction of an existing claim; satisfaction is the completed substituted performance. Once satisfaction occurs, the original duty is discharged, subject to rules governing disputed or unliquidated claims.
Flashcard 8: Under the Restatement majority rule, what factors determine whether a breach is material?
Answer: Courts consider the extent to which the injured party receives the expected benefit, the adequacy of compensation for the deficiency, forfeiture to the breaching party, the likelihood of cure, and whether the breaching party acted in good faith.
Flashcard 9: What options does the nonrepudiating party have after anticipatory repudiation?
Answer: The party may await performance, sue immediately, suspend its own performance, or urge retraction; it must not materially change its position or cancel the contract while awaiting performance. Under the majority rule, it may also demand adequate assurance if reasonable grounds for insecurity exist.
Flashcard 10: What is the majority rule for discharge by impossibility or impracticability?
Answer: A party’s duty is discharged when an unexpected event makes performance impossible or extraordinarily difficult or expensive, the party seeking discharge did not assume the risk, and the event’s nonoccurrence was a basic assumption of the contract. Mere increased expense or inconvenience ordinarily is insufficient.
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