How Contracts Come to an End Chapter 6. Ending a Contract The law tells us when a contract can end so that people will know when their rights and duties.

How Contracts Come to an End

Chapter 6

Ending a ContractThe law tells us when a contract can end so that people will know when their rights and duties conclude.

By performance

By agreement

Discharge by PerformancePerformance is a series of activities that fulfills

the purpose of a contract.

Time for performance - duties under the contract must be completed in reasonable time

Satisfactory performance - completing the work in a satisfactory manner

Substantial performance - completing all duties for the contract to end.

Tender of performance - paying with money

Discharge by Agreement

End a contract by mutual agreement.

Possible substitution for another contract?

Involuntary dischargeSometimes contracts are discharged despite what the parties intend to do

By impossibility of performance

By operation of law

Discharge of Impossibility

Death or illness in a personal service contract

Destruction of the exact subject matter

Situations of the contract become illegal

Breach of ContractA person fails to perform the duties spelled out by a contract.

The effects of this depends on the case.

Discharge by Operation

Wrongful alteration - changing of the contract illegally

Statute of limitations - establishing a time limit

Bankruptcy

FRAUDTo win a lawsuit based on fraud:

There must be a false representation of fact (a lie).

The person who lied must know it was a lie.

The lie must be made with the intent that it be relied on.

The innocent party must reasonably reply on the lie.

The innocent party must experience a loss.

DuressAct of destroying someone's free will by force, threat of force, or bodily harm.

Physical - actual physical force is used to cause someone to enter a contract.

Economic - threatening a persons income or business that makes a person enter a contact without real consent.

Undue influence Making inappropriate use of a persons power to create an agreement that is very favorable to the person with all the power.

The existence of a caregiver-type relationship

The use of excessive pressure by the caregiver

A resulting contract that heavily favors the caregiver

Remedy and Damages

What can you do if you think someone has not fulfilled a contract you had agreed to?

You may accept the breach

You may sue for money damages

You may take the court for an equitable remedy $$$