Discharge of Contracts Quiz

A contract is discharged when its terms are fully completed by all parties.

A contract automatically ends when the agreed-upon time period expires.

A legal timeframe limits when a party can sue for breach of contract.

A contract may be discharged if one or more of the essential legal elements are missing.

A contract can be discharged if one of the parties dies or becomes incapacitated.

A party's bankruptcy can discharge their contractual obligations.

Unauthorized changes to a contract can render it void.

Contracts are discharged by operation of law when the law, without regard to party intentions, dictates the outcome.

A legal remedy where a court orders a party to fulfill their contractual obligations, typically used in real estate purchase agreements.

A remedy that aims to undo a contract, returning the parties to their pre-contract state.

A contract clause that allows for liquidated damages to be paid to the injured party in case of breach.

Money deposited by a buyer as a sign of good faith in a real estate contract, which may be forfeited if the buyer breaches.

A lawsuit initiated by the injured party seeking monetary compensation for damages caused by a breach of contract.

Pre-determined damages specified in a contract that are paid in case of a breach.

Damages awarded to compensate for actual losses incurred due to a breach of contract.

A specific type of compensatory damage for concrete economic losses, like lost profits or property damage.

A type of compensatory damage awarded for non-economic losses, such as pain, suffering, and emotional distress.

Damages that are rarely awarded in breach of contract cases, except when fraud is involved, intended to punish the wrongdoer and deter future wrongdoing.

A unilateral action where one party ends a contract without necessarily having the right to do so. They may still be obligated to the agreement.

A unilateral action where an agent in an agency relationship ends their authority and willingness to act on behalf of the principal.

A condition or clause in a contract that allows for cancellation or termination by one or both parties, often with specific triggers or deadlines.

A breach of contract occurs when one party fails to fulfill their contractual obligations without a valid excuse.

A legal remedy where the breaching party loses something of value (like a deposit) as a penalty for not fulfilling their contractual obligations.

A method of resolving contract disputes through a neutral third party, with the decision being legally binding on the parties.

A method of resolving contract disputes through a neutral third party, with the decision not being legally binding on the parties.

An agreement between two parties to modify the terms of an existing contract, effectively creating a new agreement.

A new contract that substitutes a new party for one of the original parties in an existing contract. The original contract is discharged.

A situation where one party accepts a different performance from the other party, fully discharging the original contract. The original obligation is replaced with a new one.

A legal term used in situations where two contracts effectively merge into one. The obligations of the original contract are discharged by the new contract.

Both parties fulfill their contractual obligations and receive what they were promised.

A contract automatically ends when a specified date arrives, releasing both parties from future obligations.

A party's right to sue for breach of contract is lost if they don't file a lawsuit within the legally defined time frame.

A contract can be voided if it lacks a fundamental legal element, such as a valid offer, acceptance, consideration, legal capacity, or lawful objective.

A contract becomes legally unenforceable due to a lack of legal element, making it void or voidable depending on the specific element.

A contract is discharged automatically if one party dies or becomes incapacitated, unless it's a personal service contract.

Contracts involving personal services, such as real estate agency agreements, can be discharged due to death or incapacity.

Bankruptcy by either party can lead to the discharge of a contract, often impacting real estate listing agreements.

Altering a contract's terms without mutual consent discharges the original contract, since the new terms don't reflect the original intent.

An alteration to a contract must be done with the agreement of both parties to remain legally valid.

A contract is valid if it has all the required elements: offer, acceptance, consideration, legal capacity, reality of consent, and a lawful objective.

A contract can be discharged if it involves an illegal purpose, rendering it unenforceable from the beginning.

A party can choose to void a contract if they were a minor or entered into the agreement under duress, as these situations affect their legal capacity.

A contract is deemed legally voidable if an individual enters into it while under duress, which means they were forced into the agreement against their will.