Business Law Test 2 - Contracts

¡Supera tus tareas y exámenes ahora con Quizwiz!

mutual agreement

A "meeting of the minds" regarding the rights and obligations of the parties to a contract.

mistake

A belief not in accord with the facts that may be concerned with the nature of the subject matter or the quality of the subject matter.

request for a proposal

A call for a bid or estimate for materials to be furnished or work to be done.

material alteration

A change of an important term in a contract that affects the rights or obligations of the parties.

contract of adhesion

A contract characterized by unequal bargaining power of the parties.

antenuptial or prenuptial agreement

A contract containing promised made by persons planning to marry.

personal-service contract

A contract in which services that require a unique skill, talent, ability, or the like are provided by a specific person.

unconscionable contract

A contract regarded as shockingly unfair and unjust.

voidable contract

A contract that allows the incompetent party to withdraw.

executed contract

A contract that has been fully completed by both parties.

executory contract

A contract that has not yet been completed by both parties.

oral contract

A contract that is created entirely through conversation of the parties involved.

implied contract

A contract that is understood from the acts or conduct of the parties.

void contract

A contract that lack an essential element and hence was never legally a contract.

express contract

A contract whose meaning is not determined by the conduct of the parties.

entire, or indivisible, contract

A contract with several related parts, each dependent on the other parts for satisfactory performance.

divisible contract

A contract with several unrelated parts, each of which can stand alone.

restraining order or injunction

A court decree that prohibit the performance of a certain act.

specific performance

A court order that directs that a certain act be carried out.

moral consideration

A demand of the conscience based on love, friendship, honor, or sympathy.

franchisor

A government or parent firm that grants a monopoly to another.

government-granted franchise

A legal monopoly granted to a firm or person to conduct a specific business such as a railroad or electric company.

puffing

A mere expression of opinion.

abandonment

A minor's surrender of the special protection given to him or her by the law.

counteroffer

A new and different response to an offer.

assignor

A party to a contract who transfers his or her rights to a third party.

third-party beneficiary

A party who would benefit from the performance of a contract, but for whom the contract is not created.

auctioneer

A person who conducts sales of articles in which individuals bid against one another.

minor

A person who has not yet reached the age of majority.

competent parties

A person who is of legal age and normal mentality.

mailbox rule

A principle that states that an acceptance sent via the postal system or by courier is effective when sent.

pledge or subscription

A promise to contribute to a charitable organization.

barren promise

A promise to do what one is all ready required to do.

guaranty

A promise to pay the debts or settle the wrongdoings of another.

proper form

A requirement for contracts for the sale of good for $500 or more.

novation

A significant change in a contract that is made with the mutual consent of all parties.

exculpatory clause

A statement in a contract that released one party from liability resulting from his or her own negligence throughout the performance of a contract.

general release

A written agreement to give up a claim or settle a debt for less than the amount demanded.

memorandum

A written contract or agreement.

formal contract

A written contract that bears a seal.

promissory note

A written promise to pya a specified sum of money.

restraint of trade

Actions or agreements intended to suppress or eliminate competition.

ratification

Affirming, or agreeing to, the terms of a contract entered into previously.

acceptance

Agreement to a proposal or an offer.

gambling agreement

An agreement based on the uncertain outcome of some future event.

champerty

An agreement by a person to courage or support a lawsuit in which he or she has no legitimate interest.

unlicensed transaction

An agreement with a person who is required to have, but lacks, that proves of the state to practice his or her business, profession, or occupation.

guarantor

An assignor who guarantees or stands behind an assignment.

preexisting duty

An obligation to perform actions that are all ready required.

tender of payment

An offer of payment made to fulfill the terms of a contract.

gratuitous promise

An offer to confer a benefit on someone without requiring a sacrifice in return.

public offer

An offer to late groups of people, only one of whom can accept.

past consideration

An offer to pay for a benefit that has all ready been received.

tender of performance

An offer to perform acts required by a contract.

incidental beneficiary

An outside party for whose benefit a contract is made by other parties.

assignee

An outside party to whom contract right are transferred.

anticipatory breach

Cancellation of a contract due to an announcement of intention to breach prior to the time performance is due.

duress

Domination of a person's will by force or by threat of force or injury.

impossibility of performance

Inability to fulfill the terms of a contract due to unforeseen circumstances.

fraud

Intentional misstatement of a material fact.

necessaries

Items considered essential for a person's well-being, such as food, shelter, clothing, medical care, and employment.

real property

Land and items that are permanently attached to it.

personal property

Property other than land and items permanently attached to it.

intentional concealment

Purposely not disclosing material facts to a contracting party.

age of majority

Statutory legal age.

contractual capacity

The ability of a party to make a contract.

monopoly power

The ability to control the market in particular area or for a certain product.

disaffirmance

The act of canceling a voidable contract.

forbearance

The act of refraining from exercising a legal right.

interest

The charge for the use of borrowed money.

substantial performance

The completion of a contract except for some small details.

mitigation

The duty of an injured party to lessen the amount of damages.

Statute of Frauds

The law that requires certain types of contracts to be in writing.

revocation

The offeror's rescinding of an offer that has never been accepted by the offeree.

promisee

The party to an agreement who receives a promise.

offeree

The party to whom an offer is made.

administrator

The personal representative appointed by a court to distribute the assets of the estate of the deceased.

executor

The personal representative named in a will to distribute the assets of the estate of the deceased.

parol evidence rule

The point of law that prevents oral changes to a written contract from being legally enforceable.

undue influence

The power to control the actions of another that results from a special or confidential relationship.

usury

The practice of charging a higher interest rate than that permitted by law.

invitation to trade

The prevailing legal view of a newspaper advertisement.

consideration

The promise (take/receive) exchanged by parties to a contract.

lapse of time

The reason for termination of an offer that has not been accepted by the offeree within the time limits specified.

legality of purpose

The requirements that a contract cannot violate the law.

emancipation

The state of a minor who has married and/or left home that renders the minor responsible for his or her contracts.

bankrupt

The state of a person or firm recognized to be unable to pay obligations.

assignment

The transfer of contract rights by one of the parties.

delegation

The transfer of duties to a third party by a party to a contract.

misrepresentation

Unintentional misstatement of a material fact.

incompetence

legal incapacity to make a binding contract.

offeror

the person who makes an offer.


Conjuntos de estudio relacionados

Behavior 211 T4 Questions from Varc ch 22/Sims & Saunders

View Set

Transcription and Translation Test - Genetics

View Set

Concept Synthesis: Liver Disease

View Set

UTI and STD Drug Therapy (Exam Style)

View Set

Trig Unit circle and Inverse Functions

View Set