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Contract Law - Performance, Breach and Discharge

Contract Law - Performance, Breach and Discharge

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Understanding what happens after a contract is formed – from performing your duties to navigating broken promises and ending the agreement – is absolutely crucial for your bar exam. This episode of the Study for the Bar in Your Car podcast provides a deep dive into Contract Performance, Breach, and Discharge, built upon Angela's comprehensive notes.

We begin by clarifying Conditions, the contractual clauses that dictate when a party's obligations are due or excused. Learn about Express Conditions explicitly stated, different types of Satisfaction conditions, and Constructive Conditions implied by courts for fairness. We also cover crucial Excuses that might relieve a party from meeting a condition, such as impossibility, impracticability, or waiver.

Next, we tackle the core issue of Breach – any failure to perform a contractual duty when due. Grasp the vital distinction between a Material Breach (a significant failure substantially impairing the contract's value, excusing the other party's performance) and a Partial Breach (a less severe failure where the non-breaching party still performs but can sue for damages). We look at factors determining materiality and the doctrine of Substantial Performance under common law.

Essential for bar questions is understanding Anticipatory Repudiation – a clear indication before performance is due that a party won't perform, which is treated as an immediate breach. We discuss demanding Adequate Assurances when you have reasonable doubts about performance and the non-waivable Implied Duty of Good Faith and Fair Dealing present in every contract.

Discover how contract obligations can legally terminate through various methods of Discharge. This includes Accord and Satisfaction (settling a disputed claim with a new agreement and its performance), Release (giving up a right in writing), and Novation (substituting a new party).

For UCC Article 2 contracts governing the sale of goods, we cover specific rules like the Perfect Tender Rule (requiring exact conformity, with the seller's right to cure) and important Implied Warranties: the Implied Warranty of Merchantability (goods from a merchant fit for ordinary purpose) and the Implied Warranty of Fitness for a Particular Purpose (seller knows buyer's specific need and buyer relies). We explain how these can be disclaimed.

Finally, we analyze Remedies for breach, focusing on the compensatory goal and the standard measure of Expectation Damages. Learn their calculation (direct, incidental, consequential losses) and key limitations like Reasonable Certainty and the duty to Mitigate damages. We also briefly touch on Third Party Rights, including intended beneficiaries and assignments.

Mastering these elements of performance, breach, and discharge is vital for bar exam success. Tune into Study for the Bar in Your Car for a clear, practical guide designed to boost your understanding and confidence! Listen and subscribe today to take your bar prep to the next level!.

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