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  • This Subject Area Index lists all CALI lessons covering Contracts.
  • The Contracts Outline allows you to search for terms of art that correspond to topics you are studying to find suggestions for related CALI Lessons.


Substantial Performance

If a contracting party does not complete performance, that party is in breach. But if the party has given most of the promised performance, there may be substantial performance. Another way of saying this is that the breach is not material. This lesson examines the grounds for determining whether a breach is material and explores the consequences if it is. The lesson can be run either as an introduction to substantial performance or as a review after you have completed your study.

Third Party Beneficiaries

This lesson deals with third party beneficiary contracts. The initial questions in this exercise are intended to familiarize students with the various types of contract beneficiaries. Since there is no general agreement on terminology, the questions test the students on both the First Restatement of Contracts types, i.e., creditor, donee, and incidental, and the Second Restatement of Contract types, i.e., intended and incidental. Subsequent questions deal with vesting of contract beneficiaries' rights and with defenses which can be asserted by a promisor against a beneficiary.


A contract can contain many different types of promises, made up of both express and implied terms. Express and implied warranty terms are the subject of this lesson. For instance, when parties contract for the sale of goods, they have certain expectations about the goods to be sold. These expectations form the basis of warranties that arise under U.C.C. Article 2. That is, what has the seller agreed to sell?

Written Agreement Contemplated v. Written Memorialization

This lesson looks at the process of negotiations discussing the terms of a contract when the parties contemplate a final written agreement. Often the intention is to put the terms into a final definitive writing and for the contract not to arise until signed. Other times, parties may actually agree to the terms of a contract with the obligation to execute a final contract in writing containing all the terms agreed upon. When they make such an agreement, this agreement itself may conclude the contract even prior to the signing of the final documents. This lesson illustrates both of these situations and concludes with a sample analysis problem looking at the existence of a contract after oral negotiations.