Contracts Flashcards

Which doctrine allows rescission of a contract when one party's assent was induced by the other's fraudulent misrepresentation?

Answer: Fraud in the inducement

Fraud in the inducement permits the defrauded party to rescind the contract because their consent was obtained through intentional misrepresentation of a material fact.

Under the UCC perfect tender rule for goods contracts, a buyer may reject goods if:

Answer: The goods or delivery fail to conform to the contract in any respect

Under UCC § 2-601, a buyer may reject goods that fail to conform to the contract in any respect, though the seller's right to cure limits the practical impact of this rule.

An accord and satisfaction discharges a contractual duty when:

Answer: The creditor accepts a lesser payment as full satisfaction of a disputed debt

Accord and satisfaction discharges a disputed debt when the creditor accepts a lesser amount tendered by the debtor in full settlement of the claim.

Which type of condition must occur before a party's contractual duty to perform arises?

Answer: Condition precedent

A condition precedent is an event that must occur before a party's duty to perform under the contract is triggered.

Under Massachusetts law, the implied covenant of good faith and fair dealing applies to:

Answer: All contracts, implying that neither party will act to deprive the other of the contract's benefits

Massachusetts recognizes an implied covenant of good faith and fair dealing in all contracts, requiring that neither party act in bad faith to deprive the other of the expected benefits of the agreement.

Specific performance as a contract remedy is typically available when:

Answer: The subject matter of the contract is unique, such as real property

Specific performance is an equitable remedy granted when the subject matter is unique—such as real estate or a rare item—making money damages inadequate to fully compensate the non-breaching party.