Contract Law
Counteroffer
a new offer made in response to the original offer that varies or qualifies the original, and so brings the original to an end
Offer and Acceptance
a proposal that expresses the willingness of one party to enter into a contract, followed by an assent by the other party in words or deed; called a "meeting of minds."
Negative-option Marketing
a sales approach in which offerees are contractually bound to an offer unless they declare their rejection of it
Material Fact
a truth (fact) that persuades a buyer to enter into a contract
Contracts Under Seal
a written contract in formal language, signed and witnessed, and with a red seal to signify intent
Contract
and agreement enforceable by law, including express and implied contracts, simple contracts or contracts under seal.
Void
without legal force; invalid, as in a marriage or other contract
Non est factum
A Latin phrase meaning, "It is not my deed"; denial by one party that a contract was properly executed, based on a claim that he or she was ignorant of its nature
Caveat emptor
A Latin phrase meaning, "let the buyer beware"; a principle in contract law
Lawful Purpose
A lawful (not illegal) reason or objective.
Valid Contract
a contract (agreement enforceable by law) that includes all the essential elements: offer and acceptance, consideration, capacity, consent, legal purpose.
Implied Contract
a contract that is suggested or understood without being openly and specifically stated; the opposite of an express contract
Voidable Contract
a contract that may be valid or void at the option of one or both parties
Rescission
a cancellation or revocation of a contract
Consent
agreement gamely freely and voluntarily, in good faith
Clerical Mistake
an error caused by a clerk or other employee, typically involving numbers; an example of a unilateral mistake
Common Mistake
an error made by both parties and concerning a fundamental fact of a contract
Unilateral Mistake
an error made my one party and recognized, but not corrected by the other party; a one-sided mistake
Express Contract
an oral or written contract in which terms and conditions are clearly defined and understood by the parties; the opposite of an implied contact
Innocent Misrepresentation
an untrue statement, or one that gives a false impression, about specific goods or services made thinking the statement was true
Fraudulent Misrepresentation
an untrue statement, or one that gives a false impression, about specific goods or services that is made knowingly and with intent to deceive
Misrepresentation
an untrue statement, or one that gives a false impression, about specific goods or services, can be innocent or fraudulent misrepresentation
Performing
carrying out, or completing, as in the terms of a contract
Simple Contracts
contracts that are either expressed or implied, oral or written and not under seal
Invitation to Treat
encouragement, through advertising or display of goods, to prospective buyers to make offers
Necessaries
goods and services needed to ensure a person's health and welfare (e.g., food, clothing, shelter); as opposed to non-necessaries
Non-necessaries
goods and services that are not required for one's health and welfare; as opposed to necessaries
Public Policy
guiding principle for the community, the people; as in requirement that contracts not go against public policy, the public good (e.g., a contract that is racist)
Duress
illegal coercion; the threat or use of violence to force a person to do something against her/his will
Undue Influence
improper pressure applied by one person to another in order to benefit from the result (e.g., a will)
Offeree
in a contract, the party to whom the offer is made
Offeror
in a contract, the party who makes the offer
Revocation
in contract law, the cancellation, or taking back, of an offer by the Offeree before it is accepted
Consideration
something of value exchanged between parties to a contract; categorised as past, present or future consideration.
Capacity
the ability to understand the nature and effect of one's actions, such as marriage; the legal ability to enter a contract on one's behalf.
Meeting in the Minds
the arriving at a mutual understanding and binding agreement by an Offeror and an Offeree
Present Consideration
the exchange of something of value between the parties to the contract at the time the contract is formed
Future Consideration
the promise of a future exchange of something of value between parties to a contract (e.g., buying on credit)
Past Consideration
the promise to pay a person for services already performed, not legally binding