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Submitted By kalashwar
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Contract Performance: Conditions, Breach, and Remedies
Learning Outcomes Checklist
After studying this chapter, students who have mastered the material will be able to:
Define what a condition is used for in a contract and distinguish conditions precedent from conditions subsequent.
Apply the doctrines related to good faith performance, discharge of a contract, and substantial performance.
Identify the ethical dilemmas that a manager faces in the context of good faith performance.
Articulate circumstances that give rise to events of discharge via mutual consent and operation of law.
Recognize events that result in breach of contract and explain anticipatory repudiation.
Identify the appropriate remedy available to nonbreaching parties and understand the responsibilities of an injured party to avoid and mitigate damages.
Explain the rights of third parties who have rights in a contract through assignment or delegation and third-party beneficiaries.
Once it has been determined that a valid and enforceable contract exists, the inquiry then necessarily focuses on whether contract obligations were faithfully met through performance by the parties. Most contracts are fully performed by the parties as contemplated, but what happens if contractual commitments are not met? This chapter continues the survey of contract law with attention to rules that govern performance and consequences of nonperformance. In this chapter, students will learn: * How conditions are used in a contract to allocate risk between parties. * Requirements to meet the standard of good faith performance, substantial performance, and events that discharge a party from having to perform. * The consequences of failing to perform as promised, known as a breach of contract, and the options of the damaged party after a breach.
Nature and Effect of Conditions
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Parties to an

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