26-50

The statute listing certain classes of contracts which must be in writing to be enforceable is called the

Statute of Frauds

When on party to a contract breaches it, the other party has the right to sue for breach of contract, but he must exercise his right within the time fixed by a statute which is called

Statute of Limitations

The contract between a principal and an agent creates a relationship called

agency

The means whereby one party conveys his rights in a contract to another who is not a party to the original contract is called

assignment

The right to declare dividends depends upon the discretion of the

board of directors

An association of individuals united for a common purpose and permitted by law to use a common name and to change its members without dissolution of the association is a

corporation

The election to void a contract is called

disaffirmance

The profits of a corporation belong to the corporation until set aside by the directors for distribution as

dividends

A corporation has a distinct existence separate and apart from the existence of its individuals members which is known as an

entity

when one promises to refrain from doing something, his conduct is known as

forbearance

A contract under seal is called

formal

Written instruments drawn in a special form, which can be transferred from person to person as a substitute for money or as instruments of credit, are called

negotiable instruments

The substitution of a new party for the original party who is to perform is called

novation

All physical items that are not real property are classified as

personal property

A contract made by a person who is intoxicated, but aware of the consequences of his/her actions is

valid

A draft drawn on a bank and payable on demand is a

check

Customs which have come to be recognized by the courts as law describes

common law

The damages awarded an injured party in a contract in which the injured party is entitled to compensation for the exact amount of the loss are called

compensatory damages

Whatever the promisor demands and receives as the price for his promise is called

consideration

An unconditional written promise made by one person to another, signed by the maker, engaging to pay on demand or at a fixed future time, a sum certain in money to order or to bearer is a

promissory note

A restatement of one's willingness to be bound by his promises made during minority is called

ratification

The owners of a corporation are known as

stockholders

A contract made by a legally declared insane person is

void

Mutual mistakes as to the existence of the subject matter renders a contract

void

A contract made by an insane person who has not been declared so judicially is

voidable