Contract (II)

Discharge of Contracts

Performance: Occurrence or nonoccurrence of condictionsDischarge by agreementDischarge by impossibilityDischarge by breach

Performancecompletesubstantial insufficient

Discharge by impossibilityOne party to a personal services contract dies; The specific subject matter of the contract is destroyed; A change in the law renders performance illegal; Performance becomes commercially impractical

Breach of ContractMaterial breach (insufficient performence)

Remedies The Expectation Interest – putting the injured party in the same place he would have been had the contract been fully performed.Reliance – Allowing the injured party to recover the expenses incurred due to his reliance on the contract being performedRestitution – a “cancellation” of the contract where the injured party recovers only those payments he has made to the breaching party

DamagesCompensatory ConsequentialPunitive NominalLiqudated