Legal Terminology Mid-Term (Ch. 17)
fraud
a misrepresentation of a material, existing fact, knowingly made, that causes someone reasonably relying on it to suffer damages. Also called deceit
deceit
a misrepresentation of a material, existing fact, knowingly made, that causes someone reasonably relying on it to suffer damages. Also called fraud
unilateral mistake
a mistake made by only one party to a contract
e-signature
abbreviation for electronic signature, a method of signing an electronic message that identifies the sender and signifies his or her approval of the messages content
consideration
an exchange of benefits and detriments by the parties to an agreement
affirm
approve
rescind
cancel
rescission
cancellation
mutual mistake
when both parties are mistake about an important aspect of an agreement. Also called bilateral mistake
bilateral mistake
when both parties are mistaken about an important aspect of an agreement. Also called mutual mistake
exculpatory clause
a clause that is used in a contract to escape legal responsibility
adhesion contract
a contract that is drawn by one party to that party's benefit and must be accepted, as is, on a take-it-or-leave-it basis if a contract is to result.
lack of consideration
a defense available to a party being sued when no consideration is contained in the agreement that is sued on
failure of consideration
a defense available when the consideration provided for in an agreement is not in fact given to the party being sued
promissory estoppel
a doctrine under which no consideration is necessary when someone makes a promise that induces another's action or forbearance, and injustice can be avoided only by enforcing the promise
seal
a mark, impression, the word "seal', or the letters L.S. placed on a written contract next to a party's signature
firm offer
a merchant's written promise to hold an offer open for the sale of goods
nundum pactum
a barren promise with no consideration
option contract
a binding promise to hold an offer open
statute of frauds
certain contracts must be in writing to be enforceable
fraud in esse contractus
fraud as to the essential nature of the transaction
fraud in the inducement
fraud that induces another to enter into a contract
in pari delicto
in equal fault
promisee
one to whom a promise is made
promisor
one who makes a promise
parol evidence rule
oral evidence of prior or contemporaneous negotiations between the parties is not admissible in court to alter, vary, or contradict the terms of a written agreement
locus sigilli
place of the seal
locus
place; locality
forbearance
refraining from taking action
unconscionable
so harshly one-sided and unfair that the court's conscience is shocked
boilerplate
standard language used commonly in documents of the same type
usury
the charging of a greater amount of interest than is allowed by law
detriment
the giving up of a legal right
undue influence
the overcoming of a person's free will by misusing a position of trust and taking advantage of the other person who is relying on the trust relationship
duress
the overcoming of a person's free will by the use of threat or physical harm
memorandum
the writing that is necessary to satisfy the statute of frauds
avoid
to annul, cancel, or make void. To get out of a voidable contract, repudiate. Also called disaffirm