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Unit 10: Performance and Breach of contract - Coggle Diagram

- - - - a contract is not discharged until all the obligations arising under it have been performed precisely and exactly.
    - - Consideration is wholly executory (exchanged promises to perform some act in the future), then there is no problem. The parties' exchanged promises to release one another from the contract will be good consideration
      - Consideration is executed (either in part or wholly)
        
        A deed is required to efect a valid release of the other party
        
        the other party must provide 'accord and satisfaction' (that is, new consideration)
    - - A breach is committed when a party without lawful excuse fails or refuses to perform what is due from them under the contract, or performs defectively or incapaciates themselves from performing
      - Repudiatory breach
        
        breaches that entitle the innocent party to consider themselves as being discharged from their obligations under the contract
    - - a contract may be discharged if, after its formation, events occur making its performance impossible or illegal and in certain analogous situations.
      - fairer to parties whose failure to perform was beyond their control
  - - - people conclude contracts to increase their welfare, and if the debtor prefers to bring the other party in the financial position in which it would have been had the contract been properly performed, this is just as good.
    - - follow the principle of the binding force of contract that if a party does not perform, it can be be forced to do so by a court of law.
  - - - Fault
        
        Partial - Total - Delayed performance of contractual obligations
      - Damage
        
        There mere non-performance of the contract is not enough, it must imply a damage for the creditor
      - Causal link between fault and harm/damage
      - the legal obligation that arises when parties fail to fulfil their contractual agreements.
    - - a formal communication issued by the creditor of an obligation to the debtor, requesting them to fufil their contractual obligations
    - - By a joint decision of the parties
      - By termination
        
        by invoking a termination clause already provided in the contract
        
        through a notice by the creditor to the debtor, if non-performance of the debtor is sufficiently serious.
    - - If the other party does not perform his/her obligation, and if this non-performance is sufficiently serious
      - Force majeure
        
        where an event beyond the control of the debtor, which could not reasonably have been foreseen at the time of the conclusion of the contract and whose effects could not be avoided by appropriate measures.
      - If it becomes clear that the other party will not perform his/her obligation, and if the non-performance is sufficiently serious
    - - Penalty clauses
        
        The party agree in advance on the damages and interests due in case of non-performance
      - Non-liability
        
        The clause is considered non-written in case of serious or intentional fault of the debtor, or if the damage constitutes physical harm
        
        The parties agree in advance that in case of non-performance of the obligations the debtor is not liable
- - - - As long as the event has not occured, the creditor cannot claim the execution of the obligation
    - - The term indicates the duration of the obligation, the debtor must execute it until the event takes place
  - - - Where its fulfilment renders the obligation unconditional
    - - Where its fulfilment results in the destruction of the obligation