AIC 301 EXAM QUESTIONS AND ANSWERS LATEST
VERSION (ALREADY GRADED A+)
substitution
parties can agree to substitute a new contract for a previous one
novation
the act of substituting a contract with another contract, and obligation with another obligation, or a
party with another arty or adding an obligation
accord and satisfaction
an agreement to substitute performance other than that required in a contract and the carrying out of
that agreement
impossibility
a promisor's duty to perform is discharged if the performance becomes objectively impossible
1) change in law
2) death or incapacitation
3) destruction of subject matter
4) prevention of completion by one party
4 circumstances that make performance of contract impossible
temporary impossibiilty
suspends but does not discharge a promisor's duty
fraudulent alteration
if a party intentionally makes a material alteration to the contract, the contract is discharged
1) condition precedent
2) condition concurrent
3) condition subsequent
3 types of contractual conditions
condition precedent
an event that must occur before a duty of performance arises in a contract
condition concurrent
an event that must occur at the same time as another condition in the same contract
condition subsequent
, an event that if it occurs, discharges a duty of performance in the contract
breach of contract
failure to fulfill a contract without legal excuse
1) repudiation
2) anticipatory breach
3) material breach
3 types of breaches
repudiation
a party's refusal to meet obligations under a contract
positive; unequivocal
a contract must be _______________ & _______________ to be breached
anticipatory breach
a party's unequivocal indication before contract performance is due that they will not perform when
performance is due
anticipatory breach
gives the nonbreaching party the option of not waiting until the expected date of performance to
determine whether the other party will breach the contract
1) contract is executory & bilateral, entailing mutual and dependent conditions
2) promisor has made a clear expression of their intention not to perform
2 requirements to sue with anticipatory breach
material breach
violation of the agreement that would justify a nonbreaching party's termination of the contract
material breach
allows the nonbreaching party to sue the breaching party for damages
immaterial breach
when there is substantial performance of the contract by the party accused of a breach
1) extent to which the breaching party has performed
2) willfulness of the breach
3) extent to which the nonbreaching party has obtained benefits and can receive adequate
compensation
3 circumstances affecting materiality of a breach
compensatory damages
VERSION (ALREADY GRADED A+)
substitution
parties can agree to substitute a new contract for a previous one
novation
the act of substituting a contract with another contract, and obligation with another obligation, or a
party with another arty or adding an obligation
accord and satisfaction
an agreement to substitute performance other than that required in a contract and the carrying out of
that agreement
impossibility
a promisor's duty to perform is discharged if the performance becomes objectively impossible
1) change in law
2) death or incapacitation
3) destruction of subject matter
4) prevention of completion by one party
4 circumstances that make performance of contract impossible
temporary impossibiilty
suspends but does not discharge a promisor's duty
fraudulent alteration
if a party intentionally makes a material alteration to the contract, the contract is discharged
1) condition precedent
2) condition concurrent
3) condition subsequent
3 types of contractual conditions
condition precedent
an event that must occur before a duty of performance arises in a contract
condition concurrent
an event that must occur at the same time as another condition in the same contract
condition subsequent
, an event that if it occurs, discharges a duty of performance in the contract
breach of contract
failure to fulfill a contract without legal excuse
1) repudiation
2) anticipatory breach
3) material breach
3 types of breaches
repudiation
a party's refusal to meet obligations under a contract
positive; unequivocal
a contract must be _______________ & _______________ to be breached
anticipatory breach
a party's unequivocal indication before contract performance is due that they will not perform when
performance is due
anticipatory breach
gives the nonbreaching party the option of not waiting until the expected date of performance to
determine whether the other party will breach the contract
1) contract is executory & bilateral, entailing mutual and dependent conditions
2) promisor has made a clear expression of their intention not to perform
2 requirements to sue with anticipatory breach
material breach
violation of the agreement that would justify a nonbreaching party's termination of the contract
material breach
allows the nonbreaching party to sue the breaching party for damages
immaterial breach
when there is substantial performance of the contract by the party accused of a breach
1) extent to which the breaching party has performed
2) willfulness of the breach
3) extent to which the nonbreaching party has obtained benefits and can receive adequate
compensation
3 circumstances affecting materiality of a breach
compensatory damages
