Business Law: Contract Performance

The video tutorial covers the duties of parties in a contract, using examples to illustrate breaches such as substantial, material, and anticipatory breaches. It also discusses defenses for breach of contract, explaining how they can render a contract void, voidable, or unenforceable.

What is the primary duty of each party in a contract?

• To perform their obligations as agreed

• To renegotiate the terms regularly

• To ensure the contract is voidable

• To breach the contract intentionally

Which type of breach occurs when performance is slightly below expectations?

• Substantial performance

• Complete breach

• Anticipatory breach

• Material breach

What happens in a material breach of contract?

• The contract is automatically void

• The promisor receives nothing in return

• The promisor is entitled to full payment

• The promisor receives partial payment

What is an anticipatory breach?

• A breach that occurs after performance

• A breach that occurs before performance is due

• A breach that is resolved through negotiation

• A breach that is minor and negligible

What can a party do if they are taken to court for breaching a contract?

• Renegotiate the contract terms

• Automatically pay the full damages

• Use defenses to mitigate liability

• Ignore the court summons

What does it mean if a contract is void?

• It is valid but unenforceable

• It never had any legal effect

• It is valid but can be voided by one party

• It can be enforced by either party

How does a voidable contract differ from a void contract?

• A voidable contract is never valid

• A voidable contract is automatically unenforceable

• A voidable contract can be enforced by both parties

• A voidable contract is valid but can be voided by one party