Business Law 1 (Chapter 18)

Admission

A statement made in court, under oath, or at some stage during a legal proceeding, in which a party against whom charges have been brought admits that an oral contract existed, even though the contract was required to be in writing.

Partial Performance

An exception to the statute of frauds in which the performance of portions of an unwritten agreement by one of both parties can constitute proof that an oral contract exists between the parties.

Merger Clause

A clause in a written agreement within the statute of frauds which states that the written agreement accurately reflects the final, complete version of the agreement.

Parol Evidence Rule

A common law rule which states that oral evidence of an agreement made prior to or contemporaneously with a written agreement is inadmissible when the parties intend to have the written agreement be the complete and final version of their agreement.

Equal Dignity Rule

A rule requiring that contracts that would normally fall under the statute of frauds and need a writing if negotiated by the principal must be in writing even if negotiated by an agent.

Prenuptial Agreement

An agreement two parties enter into before marriage that clearly states the ownership rights each party enjoys in the other party's property. To be enforceable, it must be in writing.

Integrated Contract

A written contract intended to be the complete and final representation of the parties' agreement.

Condition Precedent

In a contract, a event that must occur in order for a party's duty to arise.

Statute of Frauds

State-level legislation that addresses the enforceability of contracts that fail to meet the requirements set forth in the statute; serves to protect promisors from poorly considered oral contracts by requiring that certain contracts be in writing.