©BRIGHTSTARS EXAM SOLUTIONS
11/14/2024 12:19 PM
BMGT 380 Exam 3 Questions With Verified
Answers
5 types of conditions - answer✔-condition precedent
-condition subsequent
-concurrent condition
-express condition
-implied condition
Condition precedent - answer✔when a future uncertain event creates the duty to perform
if that even doesn't occur then you don't have a duty to perfrom
Condition subsequent - answer✔when a future uncertain event discharges duty to perform
ex: i promise to give you $500 a month, but if you fail out of college, i will not give you the $500
--failing out of college (condition subsequent) cuts off the obligation to pay
Expressed condition - answer✔contract spells out condition explicitly, court very strict about
requiring compliance, helde to performance standard
Implied condition - answer✔not expressly stated but implied given facts and circumstances
4 excuses of conditions - answer✔-party being benefited from condition has
prevented/hindered it from occurring
-waiver (automatically give up right to condition occurring)
1|Page
, ©BRIGHTSTARS EXAM SOLUTIONS
11/14/2024 12:19 PM
-estoppel (when you've relied on my waiver/representation I am estopped from asserting the
condition)
-performance of condition becomes *impossible*
Strict performance standard - answer✔requires full or perfect compliance with the contract
terms
Substantial performance standard - answer✔slightly lower standard applied to duties that are
difficult to perform without some deviation from perfection in minor respects
-service contracts
Good faith performance - answer✔-both parties but carry out contract in good faith
-broad and flexible duty implied by the law
Material breach - answer✔-occurs when applicable performance standard (strict vs substantial)
has not been met
What happens if there's a material breach? - answer✔-injured party has right to withhold
performance, may cancel contract, can sue for damages for total breach of contract
Non-material breach - answer✔-occurs when breach isn't serious enough to be material
-only applies to substantial performance contract!!
What happens if there's a non-material breach? - answer✔injured party can only sue for the
damages caused by the breach
-can't cancel contract
Timing and breaches - answer✔-"time is of the essence" - timely performance is an expressed
condition so performing late is a material breach
-if no time specified must be done in reasonable time
--promisee can get losses caused by delay but NOT a material breach
Anticipatory repudiation - answer✔when parties breach the contract before duty is due
-material breach
ex: before my performance is due I tell you I will not perform
2|Page
11/14/2024 12:19 PM
BMGT 380 Exam 3 Questions With Verified
Answers
5 types of conditions - answer✔-condition precedent
-condition subsequent
-concurrent condition
-express condition
-implied condition
Condition precedent - answer✔when a future uncertain event creates the duty to perform
if that even doesn't occur then you don't have a duty to perfrom
Condition subsequent - answer✔when a future uncertain event discharges duty to perform
ex: i promise to give you $500 a month, but if you fail out of college, i will not give you the $500
--failing out of college (condition subsequent) cuts off the obligation to pay
Expressed condition - answer✔contract spells out condition explicitly, court very strict about
requiring compliance, helde to performance standard
Implied condition - answer✔not expressly stated but implied given facts and circumstances
4 excuses of conditions - answer✔-party being benefited from condition has
prevented/hindered it from occurring
-waiver (automatically give up right to condition occurring)
1|Page
, ©BRIGHTSTARS EXAM SOLUTIONS
11/14/2024 12:19 PM
-estoppel (when you've relied on my waiver/representation I am estopped from asserting the
condition)
-performance of condition becomes *impossible*
Strict performance standard - answer✔requires full or perfect compliance with the contract
terms
Substantial performance standard - answer✔slightly lower standard applied to duties that are
difficult to perform without some deviation from perfection in minor respects
-service contracts
Good faith performance - answer✔-both parties but carry out contract in good faith
-broad and flexible duty implied by the law
Material breach - answer✔-occurs when applicable performance standard (strict vs substantial)
has not been met
What happens if there's a material breach? - answer✔-injured party has right to withhold
performance, may cancel contract, can sue for damages for total breach of contract
Non-material breach - answer✔-occurs when breach isn't serious enough to be material
-only applies to substantial performance contract!!
What happens if there's a non-material breach? - answer✔injured party can only sue for the
damages caused by the breach
-can't cancel contract
Timing and breaches - answer✔-"time is of the essence" - timely performance is an expressed
condition so performing late is a material breach
-if no time specified must be done in reasonable time
--promisee can get losses caused by delay but NOT a material breach
Anticipatory repudiation - answer✔when parties breach the contract before duty is due
-material breach
ex: before my performance is due I tell you I will not perform
2|Page
