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BUS Ch. 8 Terms
Business chapter eight terms
| Question | Answer |
|---|---|
| Contract | A legally enforceable agreem to do or not to do a specified thing. |
| Promisor | The person who makes a contractual promise. |
| Promisee | The person to whom a contractual promise is made. |
| Uniform Commercial Code | A uniform code drafted by the National Conference of Commissioners of Uniform State Laws governing the conduct of business, sales, warranties, and other commercial matters. |
| Offeror | In ontracts, the party who makes an offer. |
| Offeree | In contracts, the party to whom an off is made by the offeror. |
| Express contract | An agreement stated in words, spoken or written. |
| Implied in fact contract | Contractual agreement manifested by conduct or body language. |
| Quasi contract | Not a true contract, but an obligation imposed on one arty to prevent unjust enrichment of another. |
| Bilateral contract | Agreement in which both parties exchange binding promises. |
| Formal contract | Agreement that must use prescribed language or be in prescribed form. |
| Simple contract | All oral and written contracts that are not classified as formal contracts. |
| Unilateral contract | A contract in which the promisor seeks performance of a requested act. Upon performance of the act, the contract is formed and the promisor is obligated to fulfill the promise. |
| Executory contract | A valid contract in which something remains to be done by either or both parties. |
| Voidable contract | An agreement that may be legally enforced or may be rejected by a party. |
| Competent parties | Parties who are legally qualified (that is, have the capacity) to make a binding contractual agreement. |
| Necessaries | Goods and services ordinarily required by and appropriate to an incompetent person's station in life, yet not available and/or not provided by parent or guardian. |
| Objective theory of contracts | A theory that the words and conduct of an offeror mean whatever a reasonable person in the offeree's position would think they mean, as opposed to what the offeror may have actually meant. |
| Revocation | The taking back of an offer. |
| Option contract | An agreement concerning the right to buy or sell something to another at a certain price within a certain time. |
| Genuine assent | When consent of both parties to be bound by a contract is freely given and is not negated by fraud, duress, undue influence, and/or certain mistakes. |
| Undue influence | Wrongful persuation, often by fiduciary or other trusted individual, that deprives the victim of freedom of will in making a contract. |
| Fraud | A knowingly false representation of a material fact, made through words or conduct, with intent to deceive a victim, who is induced to contract in reliance on the lie, and who is thereby injured. |
| Consideration | The price or inducement to enter a contract. |
| Insurable interest | A sufficient interest in property to where its loss or destruction would cause an economic loss to the owner or possessor. |
| Blue laws | Statues that regulate or prohibit commercial activities and amusements on Sundays. |
| Interest | The price, usually expressed as an annualized rate, for use of a sum of money obtained from a lender. |
| Subornation of perjury | Crime of persuading another person to commit perjury. |
| Statute of frauds | A state statute requiring certain types of contracts to be evidenced by writing and to be signed by the party to be charged, or by their authorized agent. |
| Property | Anything that may be owned. |
| Real property | Land and things permanently attached to it. Includes air space above, surface water, and subsurface waters, gases, and minerals. |
| Personal property | All property that is not real property. |
| Uniform Electronic Transactions Act (UETA) | A uniform state act providing a legal framework for electronic transactions giving electronic signatures and records the same validity and enforceablity as manual signatures and paper-based transactions. |
| Privity of contract | Applies to a direct contractual relationship between parties. |
| Assignment | The transfer of some or all rights under a contract to another person. |
| Delegation | Transfer of some or all contractual duties to another person. |
| Performance | That which each party to a contract promises to do. |
| Substantial performance | WHen a party to a contract honestly performs most essentials of the contract, but there is some minor omission or deviation that can be corrected, or compensated for in a reduction of the price. |
| Accord and satisfaction | A party agrees (by accord) to accept some substitue for the promised performance of a contract, which is then provided (the satisfaction). |
| Novation | A three-party agreement in which a creditor accepts a new party who agrees to assume the debt and to release the prior debtor. |
| Material alteration | Any deliberate, unilateral (by one of the parties), important change that is made in a written contract, without legal excuse. |
| Recission | The unmaking of a contract by the mutual agreement of the parties. |
| Compensatory damages | In the case of a breach of contract, this amount is equivalent to the actual dollar loss suffered because the defeant did not perform as promised. |
| Liquidated damages | Amount of damages that contracting parties have previously agreed would be fair payment in case of breach. |
| Adhesion contract | A contract drafted by a dominant party and then presented to the other party - the adhering party - on a "Take it or leave it" basis. |
| Caveat emptor | Lation for "Let the buyer beware." A phrase meaning that before purchase buyers should investigate and then rely on their own judgment regarding obvious or readily discoverable short-comings of the goods or services. |
| Caveat venditor | Latin for "Let the seller beware." A phrase meaning that sellers should exercise appropriate care to assure that goods sold (or services rendered) are of fair value and sutable for human use, or be subjected to possible legal sanctions. |
| Consumer Credit Protection Act of 1968 | Federal law requiring full disclosure to borrowers or consumersof the cost of credit as an annual percentage rate (APR) and in total dollars. |
| Credit Card Liability Act of 1970 | Federal law that regulates issuance and enforcement of credit cards. |
| Fair Credit Reporting Act of 1970 | A federal law that enables consumers to check and correct credit information about themselves in the files of credit-reporting companies. |
| Equal Credit Opportunity Act of 1974 | Federal law that forbids discrimination in the extension of credit because of sex, marital status, race, or other specified qualities of the applicant. |
| Fair Credit Billing Act of 1974 | A federal law that permits users of credit cards to challenge correctness of credit charges without penalty. |
| Fair Debt Collection Practices Act of 1977 | A federal law that outlaws certain unreasonably harsh collection practices prviously used by professional debt collectors. |
| Credit Card Accountability Responsibility and Disclosure Act of 2009 | A federal law that resticts credit card issuers from unjustified rate increases and fees and etablishes other prohibited or required acts for credit card issuers. |
| Merchant | A businessperson who regularly deals in goods of the kind involved in a sales or lease contract. |
| Consequential damages | Amount awarded by a court to make good or replace indirect but foreseeable economic loss resulting from a party's breach of contract. |
| Parol evidence rule | The rule that when contracting parties have put their complete agreement into writing, no prior or contemporaneous oral or written terms may be unilaterally added later to change the written contract, absent proof of fraud, mistake, or illegality. |
| Magnuson-Moss Warranty of 1975 | Federal law that protects ultimate consumers of personal, family, and household goodsby defining effects of full and limited warranties. |
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