1. Term for completing all obligations is called Performance of contract
Term for Failure to perform Obligations is called Breach of contract
2. In the first part the duty for the payment is called condition subsequent.
In the second part the duty for obtaining the loan before payment is condition precedent.
3. Example for condition precedent is that A contracts to purchase a house form B only if she is able to get a loan from C.
Example for condition subsequent is that A promised to pay B $100 for his guitar. The guitar was provided to A by B when $100 was given.
4. Excuse of condition takes place when the occurrence of the condition is no longer required for the party to perform the obligation under the contract. An example where condition is excused is that a person who has a conditional duty gives up the rights in relation to the condition voluntarily or the condition is waived as it was done in the case of Harbor Park Market v. Gronda.
5. The two standards of performance in relation to fulfillment of a contract are Strict performance standard and Substantial Performance standard.
Example- strict performance standard occurs when a buyers agrees to finalize a deal by 3rd January 5pm. If the deal is not finalized within time then the buyer has no rights against the seller. Substantial performance standard takes place when A built a house for B. all terms of the contract was met except to fit in a glass door. Here A is discharged and B can pay fewer prices to A for the glass door not being installed.
6. Both material and non material breaches provided some rights to the aggrieved party to make a legal claim. However a material breach is of a more serious nature. A non material breach is of a less significant nature. In case of a non material breach the contract is discharged by performance and a party may make a claim for damages for losses incurred. However in case of a material breach the aggrieved party may end the contract as well as claim damages for any losses which have been incurred.
7. The breach in this case is a material breach. This is because it important for the other party to have Green Widgets and Blue widgets having inscriptions may not be of any use. In additio the widgets may have been required to be sold to another party on 26th march. It was clearly stated in the contract that the widgets “must” be delivered by 25th march which was not. Thus the breach is of a serious nature and is a material breach.
8. Yes, for the partially performed part in relation to the contract I have the remedy of restitution. The remedy is available when a party has suffered any loss and is provided to compensate the party for the loss. I will be given the remedy as I have supplied widgets to you.
9. Yes I have a common law excuse for non performance which is that of impossibility as I have no possible means to supply the widgets as they have been destroyed by situation which was not within my control.
In addition under the UCC I have the excuse of impartibility has the performance of the contract has become highly impractical.
10. Yes, I have legal remedy for the breach of contract. I may obtain money damages for any loss which has been incurred by me. Specifically I may claim Compensatory damages to compensate me for the losses which have been incurred due to the breach. I may also obtain punitive damages where I can show that the act has been done by you intentionally.