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Chapter 8

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Scienter   Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.  
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Adhesion Contract   A "standard-form" contract, such as that between a large retailer and a consumer, in which the stronger party dictates the terms.  
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Blue Laws   State or local laws that prohibit the performance of certain types of commercial activities on a Sunday.,  
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Blue Sky Laws   State laws that regulate the offering and sale of securities for the protection of the public.  
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Collateral Promise   A secondary promise that is ancillary to a principal transaction or primary contractual relationship.  
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Contractual Capacity   The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.  
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Covenant Not To Compete   A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specified geographic area.  
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Disaffirmance   The legal avoidance, or setting aside, of a contractual obligation.  
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Emancipation   In reguards to minors, the act of being freed from parental control  
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Employment Contract   A contract between an employer and an employee in which the terms and conditions of employment are stated.  
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Exculpatory Clause   A clause that releases a contractual party from liability in the event of monetary or physical injury, no matter who is at fault.  
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Necessaries   Necessities required for life.  
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Prenupitial Agreement   An agreement made before marriage that defines each partner's ownership rights in the other partner's property.  
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Ratification   The act of accepting and giving legal force to an obligation that previously was not enforceable.  
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Reformation   A court-ordered correction of a written contract so that it reflects the true intentions of the parties.  
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Statue Of Frauds   A state statue under which certain types of contracts must be in writing to be enforceable.  
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Unconscionable Contract Of Clause   A contract or clause that is void on the basis of public policy because one party, as a result of disproportionate bargaining power, is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party.  
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Usury   Charging an illegal rate of interest.  
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