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Bus Law II
Test III
| Question | Answer |
|---|---|
| acceptance | a voluntary act by the offeree that shows assent, or agreement, to the terms of an offer; may consist of words or conduct |
| accord and satisfaction | common means of settling a disputed claim, whereby a debtor offers to pay a lesser amount than the creditor purports is owed; the creditor’s acceptance of the offer creates an accord and when the accord is executed, satisfaction occurs |
| adhesion contract | “standard form” contract, such as that between a large retailer and a consumer, in which the stronger party dictates the terms |
| agreement | meeting of two or more minds in regard to the terms of a contract; usually broken down into two events-an offer by one party to form a contract and an acceptance of the offer by the person to whom the offer is made |
| alienation | process of transferring land out of one’s possession |
| anticipatory repudiation | assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time |
| assignee | party to whom the rights under a contract are transferred or assigned |
| assignment | act of transferring to another all or part of one’s rights arising under a contract |
| assignor | party who transfers his or her rights under a contract to another party |
| Bilateral contract | type of contract that arises when a promise is given in exchange for a return promise |
| bilateral mistake | mistake that occurs when both parties to a contract are mistaken about the same material fact and the mistake is one that a reasonable person would make; either party can rescind the contract |
| blue laws | state or local laws that prohibit the performance of certain types of commercial activities on Sunday |
| blue sky laws | state laws that regulate the offering and sale of securities |
| breach of contract | the failure, without legal excuse, of a promisor to perform the obligations of a contract |
| collateral promise | secondary promise that is ancillary to a principal transaction or primary contractual relationship, such as a promise made by one person to pay the debts of another if the latter fails to perform; normally must be in writing to be enforceable |
| commercial impracticality | doctrine under which a party may be excused from performing a contract when 1 a contingency occurs 2 the contingency’s occurrence makes performance impracticable, and 3 nonoccurrence of the contingency was a basic assumption on which the contract was made |
| concurrent conditions | conditions that must occur or be performed at the same time; they are mutually dependent; no obligations arise until these conditions are simultaneously performed |
| condition precedent | a condition that must be met before a party’s promise becomes absolute |
| condition subsequent | a condition that, if not fulfilled, operates to terminate a party’s absolute promise to peform |
| condition | qualification, provision, or clause in a contractual agreement, the occurrence or nonoccurrence of which creates, suspends, or terminates the obligations of the contracting parties |
| consideration | the value given in return for a promise |
| Contract | agreement that can be enforced in court; formed by two or more competent parties who agree, for consideration, to perform or refrain from performing some legal act now or in the future |
| contractual capacity | threshold mental capacity required by law for a party who enters into a contract to be bound by that contract |
| counteroffer | offeree’s response to an offer in which the offeree rejects the original offer and at the same time makes a new offer |
| covenant not to compete | contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within specified geographic area |
| covenant not to sue | agreement to substitute a contractual obligation for some other type of legal action based on a valid claim |
| delegatee | party to whom contractual obligations are transferred |
| delegation of duties | act of transferring to another all or part of one’s duties arising under a contract |
| delegator | party who transfers his or her obligations under a contract to another party |
| disaffirmance | the legal avoidance, or setting aside, of a contractual obligation |
| discharge | termination of an obligation |
| duress | unlawful pressure brought to bear on a person, causing the person to perform an act that she or he would not otherwise perform |
| emancipation | the act of being free from parental control; occurs when a child’s parent or legal guardian relinquishes the legal right to exercise control over the child or when a minor leaves home to support him- or herself. |
| employment contract | contract between an employer and an employee in which the terms and conditions of employment are stated |
| estopped | barred, impeded or precluded |
| exculpatory clause | clause that releases a contractual party from liability in the event of monetary or physical injury, no matter who is at fault |
| Executed contract | contract that has been completely performed by both parties |
| Executory contract | contract that has not yet been fully performed |
| Express contract | contract in which the terms of the agreement are stated in words, oral or written |
| forbearance | act of refraining from an action that one has a legal right to undertake |
| Formal contract | contract that by law requires a specific form, such as being executed under seal, for its validity |
| frustration of purpose | a court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party’s control) |
| Implied-in-fact contract | contract formed in whole or in part from the conduct of the parties |
| impossibility of performance | doctrine under which a party to a contract is relieved of her or his duty to perform when performance becomes objectively impossible or totally impracticable (through no fault of either party) |
| incidental beneficiary | 3rd party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed; has no rights in a contract and cannot sue to have the contract enforced |
| Informal contract | contract that does not require a specified form or formality to be valid |
| integrated contract | written contract that is intended to be a complete and final statement of the terms of the agreement from which extraneous evidence is excluded |
| intended beneficiary | 3rd party for whose benefit a contract is formed; can sue the promisor is such a contract is breached |
| liquidated debt | debt for which the amount has been ascertained, fixed, agreed upon, settled or exactly determined |
| mailbox rule | rule providing that an acceptance of an offer becomes effective on dispatch if mail is, expressly or implied, an authorized means of communication of acceptance to the offeror |
| mirror image rule | common law rule that requires that the terms of the offeree’s acceptance adhere exactly to the terms of the offeror’s offer for a valid contract to be formed |
| necessaries | necessities required for life, such as food, shelter, clothing, and medical attention |
| novation | the substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated |
| Objective theory of contracts | theory under which the intent to form a contract will be judged by outward, objective facts as interpreted by a reasonable person, rather than by the party’s own secret, subjective intentions |
| obligee | one to whom an obligation is owed |
| obligor | one who owes an obligation to another |
| offer | promise or commitment to perform or refrain from performing some specified act in the future |
| Offeree | person to whom an offer is made |
| Offeror | person who makes an offer |
| option contract | contract under which the offeror cannot revoke the offer for a stipulated time period |
| parol evidence rule | rule under which a court will not receive into evidence the parties’ prior negotiations, prior agreements, or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties’ written contract |
| past consideration | act that takes place before the contract is made and that ordinarily, by itself, cannot be consideration for a later promise to pay for the act |
| performance | the fulfillment of one’s duties arising under a contract with another |
| prenuptial agreement | agreement made before marriage that defines each partner’s ownership rights in the other partner’s property; must be in writing |
| privity of contract | the relationship that exists between the promisor and the promise of a contract |
| Promise | assertion that something either will or will not happen in the future |
| Promisee | person to whom a promise is made |
| Promisor | person who makes a promise |
| promissory estoppel | doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies; binding if justice will be better served by the enforcement of the promise |
| Quasi contract | fictional contract imposed on the parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another |
| ratification | act of accepting and giving legal force to an obligation that previously was not enforceable |
| reformation | court-ordered correction of a written contract so that it reflects the true intentions of the parties |
| release | contract in which one party forfeits the right to pursue a legal claim against the other party |
| rescission | remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be affected through mutual consent of the parties, by the parties’ conduct or by court decree |
| revocation | the withdrawal of an offer by an offeror |
| scienter | knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive |
| Statute of Frauds | state statute under which certain types of contracts must be in writing to be enforceable |
| tender | unconditional offer to perform an obligation by a person who is ready, willing and able to do so |
| third-party beneficiary | one for whose benefit a promise is made in a contract but who is not a party to the contract |
| unconscionable contract or clause | 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 |
| Unenforceable contract | valid contract rendered unenforceable by some statute or law |
| Unilateral contract | contract that results when an offer can only be accepted by the offeree’s performance |
| unilateral mistake | mistake that occurs when only one party to a contract is mistaken about a material fact |
| usury | charging an illegal rate of interest |
| Valid contract | contract that results when the elements necessary for contract formation (agreement, consideration, legal purpose and contractual capacity) are present |
| Void contract | contract having no legal force or binding effect |
| Voidable contract | contract that may be legally avoided at the option of one or both of the parties |
Created by:
brigeroni
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