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Stack #12095
Business law Stack #12095
| Vocabulary Chap 6-13 | Defined 2 by Ashcroft 15th Ed |
|---|---|
| offer | A proposal to make a contract |
| offeror | Person who makes an offer |
| offeree | Person to whom offer is made |
| option | Binding promise to hold an offer open |
| firm offer | A merchant's signed, written offer to sell or purchase goods saying it will be held open |
| counteroffer | Offeree's response that rejects offer by varying its terms |
| "mailbox rule" | manner of acceptance |
| minor | Person under the legal age to contract |
| necessaries | Items required for living at a reasonable standard |
| disaffirmance | Repudiation of a voidable contract |
| convict | Person found guilty by court of major criminal offense |
| consideration | What promisor requires as the price for a promise |
| composition of creditors | Whan all of mulitple creditors settle in full for a fraction of the amount owed |
| forbearance | Refraining from doing something |
| Promissory Estoppel | Substitute for consideration when another acts in reliance on promisor's promise |
| unilateral mistake | Mistake by one party to a contract |
| mutual mistake | Mistake by both parties to a contract |
| fraud | Inducing another to contract as a result of an intentionally or recklessly false statement of a material fact |
| fraud in the induement | Defrauded party intended to make a contract |
| fraud in the execution | Defrauded party did not intend to enter into a contract |
| active fraud | Party engages in action that causes the fraud |
| misrepresentation | False statement of a material fact |
| passive fraud | Failure to disclose information when there is duty to do so |
| innocent misrepresentation | False statement made in belief it is true |
| duress | Obtaining consent by means of a threat |
| undue influence | Person in special relationship causing another'ls action contrary to free will |
| rescind | To set a contract aside |
| reformation | Judicial correction of a contract |
| gambling contract | Agreement in which parties win or lose by chance |
| usury | Charging higher rate of interest than law allows |
| maximum contract rate | Highest legal rate of interest |
| legal rate | Interest rate applied when no rate specified |
| statue of frauds | Law requireing certian contract to be in writing |
| debt | Obligation to pay money |
| default | Breach of contractual obligation other than money |
| parol evidence | Oral testimony |
| parol evidence rule | Complete, written contract may not be modified by oral testimony unless evidence of fraud, accident, or mistake |
| third-party beneficiary | Person not party to contract but whom parties intended to benefit |
| creditor beneficiary | Person to whom promisee owes obligation, which is discharged if promisor performs |
| Donee beneficiary | Third-party beneficiary for whom performance is a gift |
| Incidental beneficiary | Person who unitentionally benefits from performance of contract |
| novation | Termination of a contract and substitution of a new one with same terms by new party |
| assignment | Conveyance of rights in a contract to a person not a party |
| assignor | Person making an assignment |
| assignee | Person to whom contract right is assigned |
| joint contract | Contract obligating or entitliing two or more people together to performance |
| several contract | Two or more people individually agree to perform obligation |
| joint and several contract | Two or more people bound jointly and individually |
| tender of performance | Offer to perform in satisfaction of terms of contract |
| tender of payment | Offer and ability to pay money owed |
| legal tender | Any form of lawful money |
| statute of limitations | Time w/in which right to sue must be exercised or lost |
| damages | Sum of money awarded to injured party |
| breach | Failure or refusal to perform contractual obligations |
| anticipatory breach | One party announces intention not to perform prior to time to perform |
| nominal damages | Small amount awarded when there is technical breach but no injury |
| compensatory damages | Amount equal to the loss sustained |
| punitive damages | Amount paid to one party to punish the other |
| liquidated damages | Sum fixed by contract for breach where actual damages difficult to measure |
| rescind | Set aside or cancel |
| specific performance | Carrying out the terms of contract |
| malpractice | Failure to perform w/ ability and care normally exercised by people in the profession |
Created by:
mcb