In the law of contract, once the contracting parties agree and the contract is entered into,...

In the law of contract, once the contracting parties agree and the contract is entered into, nothing can spoil, impair or destroy the contract.Discuss

Solutions

Expert Solution

Impossibility of Performance

Performance: To take effect, people entering a contract need to take action of some sort, which is referred to as performance.

If, for instance, a speaker for an event is being hired by a company, the signing of a contract is required.
After the speaker that was hired has fulfilled the duties outlined in the contract, performance has taken place.
However, if, for some reason, the speaker is unable to commit to his or her tasks as per contract, this is called the impossibility of performance.
In this case, the contract can be terminated by the contract.
Another example is a contract for a musical; if the actor is unable to perform, the contract can be ended.

Breach of Contract

If one party knowingly does not stick to the agreements in the contract, it is breached and can be terminated by the other party.

Should one of the parties that entered into the contract not fulfill its responsibilities, either partially or even fully, a breach occurs.
Whenever a material contract breach happens, the affected party can request monetary payment for the damages, yet not for an immaterial breach.
As an example, if a delivery arrives a day late, that is most likely not a material breach of contract.
Nevertheless, a material breach happens when the purchased product arrives significantly later, which then financially affects your business operations.
Prior Agreement

An agreement prior to entering into a contract that states a specific reason for terminating a contract allows for ending the contract if this reason is taking effect.
To end the contract without breaching it, specifics and conditions of this valid reason must be found in the prior agreement.
Moreover, the detailed process of how to terminate the contract in case the agreed on reason becomes invalid should be described in the prior agreement.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

In the law of contract, once the contracting parties agree and the contract is entered into,...

In the law of contract, once the contracting parties agree and the contract is entered into, nothing can spoil, impair or destroy the contract.Discuss

Performance and Breach Under what circumstances should courts not allow fully informed contracting parties to agree...

Performance and Breach Under what circumstances should courts not allow fully informed contracting parties to agree to limit remedies? Describe a specific situation where the contracting parties could or could not limit remedies. What societal and/or business principles might be involved in a court's decision?

What are the equitable remedies if a contract is breached? Let's assume two parties agree that...

What are the equitable remedies if a contract is breached? Let's assume two parties agree that Party A will finish construction on a home by September 1st. If he has only completed half by that date, has he substantially performed? What's the remedy if the court determines there was a breach?

Question 1: International Law (Letterof credit)A buyer entered into a contract topurchase 100...

A buyer entered into a contract to purchase 100 boxes of apples from a seller. The apples arrived at the buyer’s warehouse and after inspection, the buyer found half the apples to be rotten and not of merchantable quality. The buyer calls his bank to stop payment to the seller under a letter of credit that has previously been opened by the buyer to pay the seller for the apples. Discuss if the bank is allowed to follow the buyer’s...

Contract law?Use IRAC to analysis the problem. Laura is an artist. She creates sculptures. She entered...

Contract law?Use IRAC to analysis the problem. Laura is an artist. She creates sculptures. She entered into a contract with the ‘Master Art’ a business who sells artworks in Hahndorf. A term of the contract requires that Laura creates 3 sculptures every year for Master Art. At the end of the first year, Laura has created only 2 sculptures. Master Art wants to terminate the contract and Laura is not happy with this. Advise Laura and Master Arts.

At the beginning of 2021 Carefree Contracting Corporation (CCC) enters into a contract to build a...

At the beginning of 2021 Carefree Contracting Corporation (CCC) enters into a contract to build a home for a customer that is expected to take three years to complete. The contract price is $4,000,000. Completion is scheduled for the end of 2023. CCC's year end is December 31. 2021 2022 2023 Actual costs incurred current year $750,000 $2,250,000 $775,000 actual costs incurred prior years -0- 750,000 3,000,000 Cumulative actual costs incurred to date 750,000 3,000,000 3,775,000 Estimated costs to complete...

When selecting a supplier for contract award, there are several things to consider. As a contracting...

When selecting a supplier for contract award, there are several things to consider. As a contracting officer, what are some of the various factors you consider when evaluating a proposal and/or bid package, and determining whether the supplier is capable of delivering the products/services outlined in the advertisement and detailed in the terms/specifications?

Remedy that cancels contract and restores parties to original positions?

Answer all the follower questions (course business law): *Remedy that cancels contract and restores parties to original positions? *A contract that requires performance of a prohibited act by law is? *Contract that may be affirmed or rejected (disaffirmed) at the option a party is called? *Does a contract have to violate a statute to be considered illegal? *Requirements of a partnership (what is not required of a partnership)?

This week discusses contract law both as a general concept and also contract law a foundation...

This week discusses contract law both as a general concept and also contract law a foundation for the provider-patient or facility-patient relationship. Give an example of a contract that you or someone you know has signed. We sign these things all the time from buying a car to a washing machine to leasing an apartment to going bungee jumping, etc. Please explain who the parties are (buyer-seller; patient-doctor; leasor-lessee). Let us know whether you read the terms of the contract....

JCPenny entered into a contract with Emma. The contract begins on May 1 and ends on...

JCPenny entered into a contract with Emma. The contract begins on May 1 and ends on November 31, 2020. JCpenny will exchange 100 of their most popular watches at a discount as well as 100 glasses for brand-specific marketing. The regular wholesale price of the shirts is $65. JcPenny expects the cost to produce each mask will be $6. All goods that they sell have a profit margin of about 54%. Being able to carry these exclusive products is important...

Subjects