{\rtf1\ansi \deflang1033\deff0{\fonttbl {\f0\froman \fcharset0 \fprq2 Times New Roman;}{\f1\fswiss \fcharset0 \fprq2 Univers;}{\f2\fscript \fcharset0 \fprq2 Lucida Blacklet;} {\f3\froman \fcharset0 \fprq2 Nimrod;}{\f4\fnil \fcharset0 \fprq2 WP TypographicSymbols;}}{\colortbl;\red0\green0\blue0;\red0\green0\blue0;} {\stylesheet{\fs20 \snext0 Normal;} {\s1 \qj\li-1440 Quick I.;} {\s2 \qj\li-1440 Quick A.;} {\s3 \qj\li-1440 Quick 1.;} {\s4 \qj\li-1440 Quick \'5f;} }\notabind\margl1440\margr1440\hyphhotz936\ftnbj\fet2\ftnrstpg\aftnnar\viewkind1\subfontbysize \sectd \sbknone\headery1440\footery1440\endnhere\endnhere {\footer \fs60\pard \fs24 \par \pard \fs20\tqr\tx9360 {\plain \fs20 \b\f1\fs20 L200 \'97 Session 6\ul0 \tab page 6: \chpgn \par }} {\*\pnseclvl1\pndec\pnstart1{\pntxta .}} {\*\pnseclvl2\pnlcltr\pnstart1{\pntxta .}} {\*\pnseclvl3\pnlcrm\pnstart1{\pntxta .}} {\*\pnseclvl4\pndec\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl5\pnlcltr\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl6\pnlcrm\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl7\pndec\pnstart1{\pntxta .}} {\*\pnseclvl8\pnlcltr\pnstart1{\pntxta .}} {\*\pnseclvl9\pnlcrm\pnstart1} {\field{\*\fldinst {\lang4105 SEQ CHAPTER \\h \\r 1}}{\fldrslt }}\pard \fs60\qc\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs60 \b\f2\fs60 L200 \'97 Contracts}{\plain \fs60 \f2\fs60 \par }\pard \fs50\qc\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs50 \f3\fs50 Session 6\par }\pard \fs44\qc\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs44 \f3\fs44 }{\plain \fs44 \b\f3\fs44 Performance and Breach\par }\pard \fs24\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs24 \par }\pard \fs26\s1\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 I.\ul0 \tab }{\plain \fs26 \b\fs26 \ul0 \tab THIRD PARTIES}{\plain \fs26 \fs26 \par }{\plain \fs26 \fs26 A.\ul0 \tab {\shp{ \*\shpinst\shpleft4680\shptop1\shpright9360\shpbottom1129\shpbypara\shpbxmargin\shpwr2\shpwrk3{\sp{\sn fLine}{\sv 1}}{\sp{\sn lineStyle}{\sv 0}}{\sp{\sn lineWidth}{\sv 12192}}\brsp100{\sp{\sn lineColor}{\sv 2}}{\sp{\sn dxTextLeft}{\sv 76200}}{\sp{\sn dxTextRight}{\sv 76200}}{\sp{\sn dxTextTop}{\sv 76200}}{\sp{\sn dxTextBottom}{\sv 76200}}{\sp{\sn dxWrapDistLeft}{\sv 152400}}{\sp{\sn dyWrapDistTop}{\sv 152400}}{\sp{\sn dxWrapDistRight}{\sv 152400}}{\sp{\sn dyWrapDistBottom}{\sv 152400}}{\sp{\sn fFilled}{\sv 0}}{\sp{\sn shapeType}{\sv 202}}{\shptxt {\fs24\pard \fs24 \'93Third party\'94 is not numerical. It refers to \softline anyone who has not agreed to the contract as \softline a \'93party\'94 to it.\par }}}{\shprslt}}\pard \fs24 }\pard \fs26\s2\fi-866\li433\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \b\i\fs26 Third Party Beneficiaries}{\plain \fs26 \fs26 \par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 1.\ul0 \tab \ul0 \tab \ul0 \tab }{\plain \fs26 \i\fs26 Incidental vs. Intended}{\plain \fs26 \fs26 \par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 2.\ul0 \tab \ul0 \tab \ul0 \tab }{\plain \fs26 \i\fs26 Creditor vs. Donee}{\plain \fs26 \fs26 \par }\pard \fs26\fi-866\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (a)\ul0 \tab }{\plain \fs26 \b\scaps\fs26 Creditor}{\plain \fs26 \fs26 = Requesting \softline party has a prior \softline obligation to the Third Party\par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (b)\ul0 \tab }{\plain \fs26 \b\scaps\fs26 Donee}{\plain \fs26 \fs26 = Requesting party is making a gift to the Third Party\par }\pard \fs26\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 \par }\pard \fs26\s2\fi-433\li433\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 B.\ul0 \tab }{\plain \fs26 \b\i\fs26 \ul0 \tab Assignment and Delegation}{\plain \fs26 \fs26 \par }{\shp{ \*\shpinst\shpleft4680\shptop3\shpright9360\shpbottom1414\shpbypara\shpbxmargin\shpwr2\shpwrk3{\sp{\sn fLine}{\sv 1}}{\sp{\sn lineStyle}{\sv 0}}{\sp{\sn lineWidth}{\sv 12192}}\brsp100{\sp{\sn lineColor}{\sv 2}}{\sp{\sn dxTextLeft}{\sv 76200}}{\sp{\sn dxTextRight}{\sv 76200}}{\sp{\sn dxTextTop}{\sv 76200}}{\sp{\sn dxTextBottom}{\sv 76200}}{\sp{\sn dxWrapDistLeft}{\sv 152400}}{\sp{\sn dyWrapDistTop}{\sv 152400}}{\sp{\sn dxWrapDistRight}{\sv 152400}}{\sp{\sn dyWrapDistBottom}{\sv 152400}}{\sp{\sn fFilled}{\sv 0}}{\sp{\sn shapeType}{\sv 202}}{\shptxt {\fs24\pard \fs24 The principal distinction be\-tween 3d party \softline beneficiary and assignment/delegation is that \softline one is in the contract (3d party) and the other \softline is not\par }}}{\shprslt}}\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 1.\ul0 \tab \ul0 \tab \ul0 \tab }{\plain \fs26 \i\fs26 General}{\plain \fs26 \fs26 \par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (a)\ul0 \tab Contract rights = property\par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (b)\ul0 \tab Assignment/delegation is \softline a }{\plain \fs26 \b\fs26 transfer}{\plain \fs26 \fs26 \'97 need not be \softline a contract\par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (c)\ul0 \tab Contract (in general) \softline intended to produce a desired result\par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (d)\ul0 \tab One party to a contract cannot alter the rights or obligations of the other \softline without consent\par }\pard \fs26\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 \par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 2.\ul0 \tab \ul0 \tab \ul0 \tab }{\plain \fs26 \i\fs26 Assignment}{\plain \fs26 \fs26 \par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (a)\ul0 \tab Transfer of the }{\plain \fs26 \b\fs26 right to receive}{\plain \fs26 \fs26 some contract performance\par }\pard \fs26\fi-434\li2166\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (1)\ul0 \tab Assignor no longer has the right to receive\par }\pard \fs26\fi-434\li2166\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (2)\ul0 \tab Other party MUST perform to the assignee (after notice)\par }\pard \fs26\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 \par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 3.\ul0 \tab \ul0 \tab \ul0 \tab }{\plain \fs26 \i\fs26 Delegation}{\plain \fs26 \fs26 \par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (a)\ul0 \tab Obligation to perform is transferred to another (always in construction)\par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (b)\ul0 \tab Transferor is NOT relieved of responsibility for performance\par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (c)\ul0 \tab Original party is OBLIGATED to accept performance from the new one\par }\pard \fs26\s4\fi-2166\li2166\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 {\f4 \'53}\ul0 \tab \ul0 \tab \ul0 \tab \ul0 \tab \ul0 \tab \ul0 \tab Subject to the rule on changing other\'92s rights\par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (d)\ul0 \tab Transferee is subject to all the terms of the contract (including the results \softline of the transferor\'92s breach)\par }\pard \fs26\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 \par }{\plain \fs26 \fs26 \par }\page \pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 4.\ul0 \tab \ul0 \tab \ul0 \tab }{\plain \fs26 \i\fs26 Limitations on Both Assignment and Delegation}{\plain \fs26 \fs26 \par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (a)\ul0 \tab Original contract may prohibit\par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (b)\ul0 \tab }{\plain \fs26 \scaps\fs26 Not changing Other\'92s rights/obligations}{\plain \fs26 \fs26 \par }\pard \fs26\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 \par }{\shp{ \*\shpinst\shpleft4736\shptop51\shpright9416\shpbottom2599\shpbypara\shpbxmargin\shpwr2\shpwrk3{\sp{\sn fLine}{\sv 1}}{\sp{\sn lineStyle}{\sv 0}}{\sp{\sn lineWidth}{\sv 12192}}\brsp100{\sp{\sn lineColor}{\sv 2}}{\sp{\sn dxTextLeft}{\sv 76200}}{\sp{\sn dxTextRight}{\sv 76200}}{\sp{\sn dxTextTop}{\sv 76200}}{\sp{\sn dxTextBottom}{\sv 76200}}{\sp{\sn dxWrapDistLeft}{\sv 152400}}{\sp{\sn dyWrapDistTop}{\sv 152400}}{\sp{\sn dxWrapDistRight}{\sv 152400}}{\sp{\sn dyWrapDistBottom}{\sv 152400}}{\sp{\sn fFilled}{\sv 0}}{\sp{\sn shapeType}{\sv 202}}{\shptxt {\fs24\pard \fs24 To be \'93discharged\'94 means one no longer has \softline any legal obliga\-tions as a consequence of the \softline agreement. A breaching party is not \softline discharged until the resulting judgment is \softline paid.\par A party will normally be con\-sidered \softline discharged when all is done, but {\plain \fs24 \b potential}{\plain \fs24 for \softline warranty liability still exists.\par }}}{\shprslt}}}\pard \fs26\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \b\fs26 II.\ul0 \tab \ul0 \tab PERFORMANCE, BREACH, \softline DISCHARGE }{\plain \fs26 \fs26 \par }\pard \fs26\s2\fi-433\li433\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 A.\ul0 \tab }{\plain \fs26 \b\i\fs26 \ul0 \tab Ultimate Objective = Discharge}{\plain \fs26 \fs26 \par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 1.\ul0 \tab \ul0 \tab \ul0 \tab Vast majority of contracts are \softline discharged by complete \softline performance by both sides\par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 2.\ul0 \tab \ul0 \tab \ul0 \tab Some contracts are discharged \softline by the agree\-ment of the \softline parties\par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 3.\ul0 \tab \ul0 \tab \ul0 \tab Some contracts are discharged \softline when it is not legally possible to do the agreed acts\par }\pard \fs26\s3\fi-4332\li4332\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 4.\ul0 \tab \ul0 \tab \ul0 \tab Act becomes }{\plain \fs26 \b\fs26 Impossible:}{\plain \fs26 \fs26 \ul0 \tab \par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (a)\ul0 \tab Common Law rules require \'93objective impossibility\'94\par }\pard \fs26\s4\fi-1732\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 {\f4 \'53}\ul0 \tab \ul0 \tab \ul0 \tab \ul0 \tab \ul0 \tab Does not consider the cost as a factor (like \'93consideration)\par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (b)\ul0 \tab UCC added \'93commercial impracticability\'94 as an excuse\par }\pard \fs26\fi-434\li2166\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (1)\ul0 \tab About the only change was to allow court to consider economics \par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (c)\ul0 \tab }{\plain \fs26 \i\fs26 Underlying all of them:}{\plain \fs26 \fs26 \par }\pard \fs26\fi-434\li2166\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (1)\ul0 \tab Every contract involves some risk\par }\pard \fs26\fi-433\li2599\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (A)\ul0 \tab Parties assess risks and (should) build that into their contracts\par }\pard \fs26\fi-433\li2599\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (B)\ul0 \tab If something happens which they could or should have \softline anticipated, court will not excuse them\par }\pard \fs26\fi-434\li2166\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (2)\ul0 \tab We all make unconscious assumptions about the way things work \par }\pard \fs26\s4\fi-2166\li2166\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 {\f4 \'53}\ul0 \tab \ul0 \tab \ul0 \tab \ul0 \tab \ul0 \tab \ul0 \tab Those may be wrong\par }\pard \fs26\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 \par }\pard \fs26\s2\fi-433\li433\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 B.\ul0 \tab }{\plain \fs26 \b\i\fs26 \ul0 \tab Failure of Complete Performance (Breach)}{\plain \fs26 \fs26 \par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 1.\ul0 \tab \ul0 \tab \ul0 \tab If EXACT required performance is not had, exactly, there is a breach\par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (a)\ul0 \tab Other party is entitled to some legal remedy\par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (b)\ul0 \tab The remedy that may be available depends on the nature of the breach\par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 2.\ul0 \tab \ul0 \tab \ul0 \tab }{\plain \fs26 \i\fs26 Distinction between \'93material\'94 (significant) breach and others}{\plain \fs26 \fs26 \par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 3.\ul0 \tab \ul0 \tab \ul0 \tab \'93Material breach\'94 = some failure of performance that effectively denies the \softline other party of the benefit of the contract\par }\pard \fs26\s4\fi-1299\li1299\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 {\f4 \'53}\ul0 \tab \ul0 \tab \ul0 \tab \ul0 \tab Breach is not material if a little money or work will fix the problem (or a \softline substitution can be made) \par }\pard \fs26\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 \par }\page \pard \fs26\s2\fi-433\li433\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 C.\ul0 \tab }{\plain \fs26 \b\i\fs26 \ul0 \tab UCC performance terms and provisions}{\plain \fs26 \fs26 \par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 1.\ul0 \tab \ul0 \tab \ul0 \tab UCC provisions concerning \'93insurable interest\'94, \'93risk of loss\'94 and passage of \softline title specify the parties\'92 rights as the contract progresses\par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (a)\ul0 \tab \'93Risk of loss\'94 becomes the most important\par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (b)\ul0 \tab If goods are lost or destroyed, who has risk of loss may determine if the \softline contract has been performed or breached\par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 2.\ul0 \tab \ul0 \tab \ul0 \tab UCC (and CISG) has provisions that encourage (require?) parties to handle \softline problems in a businesslike manner\par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (a)\ul0 \tab }{\plain \fs26 \i\fs26 Possibility of \'93}{\plain \fs26 \b\i\fs26 cure}{\plain \fs26 \i\fs26 \'94}{\plain \fs26 \fs26 \par }\pard \fs26\fi-433\li1732\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 (b)\ul0 \tab Buyer has right to inspect before payment (unless otherwise shown in the \softline contract \'97 bill of lading, COD, etc.)\par }\pard \fs26\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \b\fs26 III.\ul0 \tab WARRANTIES}{\plain \fs26 \fs26 \par }\pard \fs26\s2\fi-433\li433\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 A.\ul0 \tab }{\plain \fs26 \b\i\fs26 \ul0 \tab Special Type of Breach}{\plain \fs26 \fs26 \par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 1.\ul0 \tab \ul0 \tab \ul0 \tab Generally thought of as relating to the performance of goods, but not really \softline limited to that\par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 2.\ul0 \tab \ul0 \tab \ul0 \tab Not specifically included in the Common Law\par }\pard \fs26\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 \par }\pard \fs26\s2\fi-433\li433\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 B.\ul0 \tab }{\plain \fs26 \b\i\fs26 \ul0 \tab UCC and Implied Warranties}{\plain \fs26 \fs26 \par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 1.\ul0 \tab \ul0 \tab \ul0 \tab UCC specifies a number of \'93warranties\'94 concerning the goods sold\par }\pard \fs26\s4\fi-1299\li1299\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 {\f4 \'53}\ul0 \tab \ul0 \tab \ul0 \tab \ul0 \tab Almost any nonconformity relating to the goods is a breach of warranty\par }{\shp{ \*\shpinst\shpleft4680\shptop6\shpright9360\shpbottom3399\shpbypara\shpbxmargin\shpwr2\shpwrk3{\sp{\sn fLine}{\sv 1}}{\sp{\sn lineStyle}{\sv 0}}{\sp{\sn lineWidth}{\sv 12192}}\brsp100{\sp{\sn lineColor}{\sv 2}}{\sp{\sn dxTextLeft}{\sv 76200}}{\sp{\sn dxTextRight}{\sv 76200}}{\sp{\sn dxTextTop}{\sv 76200}}{\sp{\sn dxTextBottom}{\sv 76200}}{\sp{\sn dxWrapDistLeft}{\sv 152400}}{\sp{\sn dyWrapDistTop}{\sv 152400}}{\sp{\sn dxWrapDistRight}{\sv 152400}}{\sp{\sn dyWrapDistBottom}{\sv 152400}}{\sp{\sn fFilled}{\sv 0}}{\sp{\sn shapeType}{\sv 202}}{\shptxt {\fs24\pard \fs24 MUST distinguish between UCC warranties \softline and \'93consumer protection\'94 laws/decisions. \softline Con\-sumer protection rules are more like a \softline species of tort law and manufacturer, seller \softline may be liable even though there is no breach \softline of warranty.\par Warranty rules protect normal contract \softline expectations. Consu\-mer protection rules \softline protect consumers from personal injury (and \softline maybe property damage) often against their \softline own stupidity\par }}}{\shprslt}}\pard \fs26\s4\fi-1299\li1299\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 {\f4 \'53}\ul0 \tab \ul0 \tab \ul0 \tab \ul0 \tab \'93Delivery\'94 breaches \softline generally are not \softline warranty breaches\par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 2.\ul0 \tab \ul0 \tab \ul0 \tab Warranties of \'93title\'94\par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 3.\ul0 \tab \ul0 \tab \ul0 \tab }{\plain \fs26 \scaps\fs26 Warranty of Merchantability}{\plain \fs26 \fs26 \par }\pard \fs26\s4\fi-1299\li1299\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 {\f4 \'53}\ul0 \tab \ul0 \tab \ul0 \tab \ul0 \tab Goods are fit for \'93normal \softline and usual\'94 purposes\par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 4.\ul0 \tab \ul0 \tab \ul0 \tab }{\plain \fs26 \i\scaps\fs26 Fitness for a particular \softline purpose}{\plain \fs26 \fs26 \par }\pard \fs26\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 \par }\pard \fs26\s2\fi-433\li433\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 C.\ul0 \tab }{\plain \fs26 \b\i\fs26 \ul0 \tab Breach of Warranty & Remedies}{\plain \fs26 \fs26 \par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 1.\ul0 \tab \ul0 \tab \ul0 \tab Contract can expressly limit \softline or disclaim any warranty\par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 2.\ul0 \tab \ul0 \tab \ul0 \tab Some limitation on disclaimer when breach causes personal injuries\par }\pard \fs26\s3\fi-866\li866\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 {\plain \fs26 \fs26 3.\ul0 \tab \ul0 \tab \ul0 \tab Limitations normally enforced in contract at commercial level\par }\pard \fs26\tx0\tx433\tx866\tx1299\tx1732\tx2166\tx2599\tx3032\tx3465\tx3898\tx4332\tx4765\tx5198\tx5631\tx6064\tx6498\tx6931\tx7364\tx7797\tx8230\tx8664\tx9097\tx9530\tx9963\tx10396 }