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