Business Law Chapter 11 Flashcards

Questions and Answers

What is an assignment?

A type of breach of contract

A remedy for contract issues

A transfer of a right a party may have under a contract to another (correct)

A legal right to sue

What does an assignor do?

Transfers contractual rights

Who is the assignee?

Receives contractual rights

What is an obligor?

Person that owes a duty under a contract Signup and view all the answers

Define performance in the context of contracts.

Fulfillment of contractual promises as agreed Signup and view all the answers

What are forms of performance?

Can be in writing or spoken Signup and view all the answers

What does it mean when a contract is discharged?

A termination of duties that ordinarily occurs when the parties perform as promised Signup and view all the answers

What is a breach of contract?

The failure to provide complete performance Signup and view all the answers

What is substantial performance?

When just about all duties have been performed, but a minor duty remains Signup and view all the answers

What is anticipatory breach?

When you notify the other party to a contract before the time of performance has arrived that you will not be able to perform Signup and view all the answers

What are initial terms in a contract?

On a specific date, event, failure of a certain event, at the free will of either party upon giving notice Signup and view all the answers

What is a subsequent agreement?

Must mutually agree to change either the terms or nature of contract Signup and view all the answers

What is impossibility of performance?

Extreme conditions rather than an obligor's personal inability to perform Signup and view all the answers

What does operation of law refer to in contracts?

This happens when the person's debts are discharged in bankruptcy, the contract has elapsed because of statute of limitations, or by alteration. Signup and view all the answers

What is a tender of performance?

A ready, willing, and able offer to perform an obligation is a tender Signup and view all the answers

What is a remedy in legal terms?

Legal means by which a right is enforced or a right's violation is prevented or redressed Signup and view all the answers

What is a remedy for minor breach?

Usually money damages. Signup and view all the answers

What does rescission and restitution mean in contract law?

Canceling contract and returning whatever has been received Signup and view all the answers

What are money damages?

Payment of money to compensate for injury Signup and view all the answers

What is specific performance?

Court order for breaching party to do what was promised in contract Signup and view all the answers

What does compensatory refer to in legal terms?

Restore position prior to breach Signup and view all the answers

What does consequential damages mean?

Grants money for foreseeable injuries caused by the breach Signup and view all the answers

What are punitive damages?

Additional money damages are added to punish defendant Signup and view all the answers

What does liquidated damages refer to?

Agreeing upon a certain amount of money damages Signup and view all the answers

What does nominal mean in legal terms?

Token amount, realization that failure to perform a duty is wrong Signup and view all the answers

What does mitigate damages mean?

Injured party must take steps to minimize harm done Signup and view all the answers

What are waivers in the context of contracts?

Giving up contractual rights Signup and view all the answers

What is the statute of limitations?

4 years to bring suit against another party Signup and view all the answers

What does bankruptcy allow?

Permits discharge Signup and view all the answers

Study Notes

Assignment and Transfer of Rights

Assignment refers to the transfer of a right under a contract from one party to another.
The assignor is the party that transfers their contractual rights.
The assignee is the individual who receives these contractual rights.

Contractual Obligations and Performance

An obligor is a person who owes a duty under a contract.
Performance entails fulfilling contractual promises as agreed, which can be done in writing or verbally.
Discharged means the termination of obligations when parties satisfy contract terms.

Breaches and Performance Types

Breach of contract occurs when there is a failure to provide complete performance.
Substantial performance indicates almost all duties have been fulfilled, but a minor duty remains.
Anticipatory breach happens when one party notifies the other they will not perform before the due date.

Modifications and Impossibility

Initial terms of a contract can change based on specific events or notices from either party.
Subsequent agreements require mutual consent to alter contract terms.
Impossibility of performance occurs due to extreme conditions, not personal inability.

Legal Principles and Performance Tender

Operation of law discharges debts through bankruptcy or statutes of limitation, or by altering contract terms without consent.
Tender of performance is an offer made to fulfill an obligation, showing readiness and willingness.

Remedies for Breaches

Remedies are legal actions taken to enforce rights or address violations.
Minor breach remedies usually involve monetary damages and require the injured party to continue fulfilling contractual duties.
Rescission and restitution involve canceling a contract and returning any received benefits.

Financial Compensation Types

Money damages aim to compensate for injury due to breach.
Specific performance is a court order compelling the breaching party to fulfill terms of the contract.
Compensatory damages restore the injured party to their pre-breach position.

Additional Damage Types

Consequential damages cover foreseeable injuries stemming from a breach.
Punitive damages are awarded to penalize the defendant beyond ordinary compensation.
Liquidated damages are pre-agreed amounts to settle disputes over breaches.

Minimal Compensation and Damage Control

Nominal damages are token amounts acknowledging a breach.
Mitigation of damages requires the injured party to minimize the impact of the breach.
Waivers involve relinquishing specific contractual rights.

Legal Timelines and Financial Discharge

The statute of limitations allows four years to file a lawsuit against another party.
Bankruptcy permits the discharge of debts, affecting contractual obligations.

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Description

Test your knowledge of key terms in Business Law with these flashcards from Chapter 11. Each card features a legal term and its concise definition, helping you to master the concepts of assignments, contractual rights, and obligations. Ideal for students preparing for exams or wanting to reinforce their understanding of business law.