The Legal and Ethical Environment of Business: "Chapter 6, Section 2: Performance and Discharge, Breach, Defenses, Equitable Remedies"

Read this section. Once a contract is formed and the parties are bound by the contract, they generally have a legal obligation to perform according to the terms of the contract. Be sure you understand when the performance required is only substantial versus strict performance. Also note the distinction between the prevalent "reasonable person" standard and the less common contractual standard of personal satisfaction. While one party's breach of a contract may result in damages, the party may have defenses against the claim. You should be aware of these defenses, and of the remedies available for a party that is the victim of a breach.