After reading this chapter, you should be able to answer the following questions: What are the primary methods of discharging a contract? What are the primary legal remedies available for a breach of contract? What are the primary equitable remedies available for a breach of contract? | Chapter 20 Discharge and Remedies Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 20: Discharge and Remedies 20- Circumstances Resulting in Discharge of Contract Occurrence or non-occurrence of a condition Complete or substantial performance Material breach: Occurs when party unjustifiably fails to substantially perform his obligations under contract Mutual Agreement Operation of law Circumstances resulting in the discharge of a contract include the occurrence or non-occurrence of a condition, complete or substantial performance, a material breach (which occurs when a party unjustifiably fails to substantially perform his or her obligations under the contract,) mutual agreement, and operation of law. 20- Types of Conditions Condition Precedent: Particular event that must occur for a party’s duty to arise Condition Subsequent: Future event that terminates obligations of parties when it occurs Concurrent Conditions: Each party’s performance conditioned on simultaneous performance of the other Express Condition: Condition explicitly state in contract (usually preceded by words such as “conditioned on,” “if,” “provided that,” or “when”) Implied Condition: Condition not explicitly stated, but inferred from nature and language of contract Contractual conditions can affect the enforceability of a contract. With a condition precedent, a particular event must occur for a party’s duty to arise. With a condition subsequent, a future event terminates the obligations of the parties when (or if) it occurs. With concurrent conditions, each party’s performance is conditioned on simultaneous performance by the other. An express condition is explicitly stated in the contract (usually preceded by words such as “conditioned on,” “if,” “provided that,” or “when.”) An implied condition is not explicitly stated in the contract, but inferred from the nature | Chapter 20 Discharge and Remedies Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 20: Discharge and Remedies 20- Circumstances Resulting in Discharge of Contract Occurrence or non-occurrence of a condition Complete or substantial performance Material breach: Occurs when party unjustifiably fails to substantially perform his obligations under contract Mutual Agreement Operation of law Circumstances resulting in the discharge of a contract include the occurrence or non-occurrence of a condition, complete or substantial performance, a material breach (which occurs when a party unjustifiably fails to substantially perform his or her obligations under the contract,) mutual agreement, and operation of law. 20- Types of Conditions Condition Precedent: Particular event that must occur for a party’s duty to arise Condition Subsequent: Future event that terminates .
