The concept of prospective infringement is linked to the idea that the creditor has the right to require reasonable insurance from the debtor in order to fulfil its contractual obligations. If the creditor requests such a request for reasonable assurances, he shall require that the contractual service be provided if there are valid reasons for uncertainty as to the performance of the other party; Failure to obtain one is a prospective violation. and the insurances are insufficient, the creditor can and will be presumed to commit a prospective violation. That is, after the conclusion of the contract, the creditor may encounter the troubling news that the debtor`s capacity to pay is fragile. There is a change in the financial situation, an unknown claimant for land rights appears, there is a labor strike or a number of situations may arise that affect the performance of contractual obligations. In these circumstances, the creditor has the right to seek reasonable assurance that the debtor is fulfilling the contractual obligations. The general reason for such a rule is set out in Article 2-609(1) of the UCC, which states that a contract „imposes on each party the obligation that the other party`s expectation of proper performance is not affected“. In addition, a creditor would be foolish if possible not to make other arrangements if it turns out that his original creditor will not be able to provide the service. The creditor must have reasonable grounds to believe that he or she will be subject to an offence.
The fear must be that of a loss of performance, which would amount to a total violation; A minor defect that can be corrected and that would at most result in compensation for the price of damage will generally not support an insurance claim. The obligation to pay the contract may be subject to the satisfaction of a third party. Construction contracts often make the buyer`s payment obligation dependent on the client`s receipt of an architect`s certificate of compliance with all contractual conditions; Road construction contracts often require that the work be done „to the satisfaction of the county engineer.“ These conditions can be stressful. The client has already erected the building and cannot „return“ what he has done. However, since the buyer wants to be sure that the building (obviously a major purchase) or street meets its specifications, the courts will subject the contractor to the condition, unless it is impossible to present a certificate (for example. B, the architect may be deceased) or if the architect acted in bad faith or if the buyer somehow prevented the issuance of the certificate. The third party`s refusal to issue a certificate must be reasonable. A contractual obligation may be fulfilled if the debtor can circumvent the contract. As described in Chapter 10 „Genuine Consent“, a contract is void or can be avoided if one of the parties lacks capacity (childhood, madness); whether there has been coercion, undue influence, misrepresentation or error; or the contract is judged unscrupulous.
If a party has a power of recourse, the right of a party to terminate the performance of a contract – to cancel it (for example.B. a minor has the power to contest). and ensure that that party is released from any other obligation. A person is obliged to fulfil the agreed contractual obligations until he is not dismissed or as long as he is not dismissed. If the person does not perform without being dismissed, liability for damages arises. Here we address the penultimate of the four main themes of contract law: how contractual obligations are fulfilled. Impossibility, impracticability, assignment – contracting parties may be released from their obligation of performance if performance is impossible, economically inapplicable or if the underlying objective of the contract is thwarted. Any contract carries a certain risk: the buyer may run out of money before he can pay; the Seller may run out of goods before it can deliver; Raw material costs can skyrocket and disrupt the manufacturer`s sound financial calculations.
If the debtor`s happiness ends, he will be stuck with the consequences – or in the legal sense, his liability is strict: he must either pay damages for breach of contract, or risk, even if his failure is due to events beyond his control. Of course, a debtor can limit his liability at any time by the contract itself. Instead of committing to deliver one million units, it can limit its commitment to „one million units or factory production, whichever is lower.“ Instead of guaranteeing that a job will be completed by a certain date, he can agree to do his best to do it. Similarly, damages may be limited in the event of a breach. One part may even include a clause that voids the contract in the event of an adverse event. However, in the absence of these provisions, the debtor generally complies with the terms of his business. Unforeseen or unforeseen events can affect the performance of a contract. If, in the course of the performance of a contract, events occur that could not have been predicted by either party, the possibility of performance of the contract could become impossible and, ultimately, lead to a reduction in the obligation to perform. .