Mort 275 Ch 5 - 13 Vocab

Specific performance

- A contract by which the court required the breaching party to perform the contract - Carrying out the terms of a contract

Unilateral contract

- A contract form when an act is done in consideration for a promise - Contract calling for an act in consideration for a promise

Express contract

- A contract in which the parties express their intentions, either orally or in writing, at the time of the agreement - Contract with the terms of the agreement specified in words

Valid contract

- A contract which will be enforced by the court - Contract enforceable by law

Quasi contract

- A fictional contract created or implied by a court for a person who is unable to contract for himself [ie; medical care, death] - An obligation which law created in the absence of agreement - Imposition of rights and obligations by law without a contract - Is invoked by courts where there is unjust enrichment - The function of this type of contract is to raise an obligation in law where in fact the parties made no promises - Implied [in law] contracts

Statute of limitations

- A law that restricts the period of time within an action may be brought to court - Time within which right to sue must be exercised or lost

Duress

- A means of removing one's free will, obtaining consent by means of a threat to do hard to the person, his family, his property, or his earning power - Obtaining consent by means of a threat

Assignment

- A means whereby one party in a contract conveys rights to another person, who is not a party to the original contract - Conveyance of personal property rights in a contract to a person not a party - Transfer to another of tenant's rights

Statute of Frauds

- A statute originally enacted by English Parliament, and now enacted in some form in all the American states, listing certain types of contracts which could only be enforced if in written form - Law requiring certain contract to be in writing in order to be binding or enforceable

Nominal damages

- A token award to symbolize vindication of the wrong done to the plaintiff - Small amount awarded when there is technical breach but no injury - Generally the award is $1.00

Contract

- An agreement between two or more competent persons which is enforceable by law - Legally enforceable agreement

Acceptance

- An agreement to an offer resulting in a contract - Drawee's signed agreement to pay draft

Unenforceable contract

- An agreement which is not in the form required by law, but can be made so by the parties - Agreement that is not currently bonding but can be made so by the parties - An agreement which at the current time is not enforceable by law

Compensatory damages

- An award paid to the injured party to cover the exact amount of their loss, but no more - Compensation amount equal to the loss sustained

Punitive damages

- An award paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff - Amount paid to one party to punish the other in excess of those required to compensate the plaintiff for the wrong done

Promissory estoppel

- An equitable doctrine that prevents the promisor from recoking the promise when the promise justifiably acts in reliance upon the promise to his detriment - Substitute for consideration when another acts in reliance on promisor's promise

Offer

- An expression of willingness to offeror to enter contractual agreement - A proposal to make a contract

Counteroffer

- An intended acceptance which changed or qualifies an original offer in effect rejects that offer and becomes a new offer - Offeree's response that rejects offer by varying terms of initial offer

Ratification

- Confirming an act which was executed without authority or an act which was voidable - Adult indicating contract made while minor is binding - Approval of unauthorized act

Undue influence

- Improper influence that is asserted by one dominant person over another, without the threat of harm - Person in special relationship causing another's action contrary to free will

Necessaries

- Items, required or proper and useful, for sustaining a human being at an appropriate living standard - Items required for living at a reasonable standard - Examples: Food, clothing, and shelter

Implied Contract

- One in which the terms of the contract are implied by acts or conduct of the parties - Contract with major terms implied by the parties' conduct or implied or deducted from the facts - Implied [in fact] contracts

Misrepresentation

- Stating an untrue fact - False statement of a material fact - Also called innocent misrepresentation when made innocently without any intention to deceive

Consideration

- That which the promisor demands and receives as the price for a promise - What a promisor required from another party as a price for a promise

Liquidated damages

- The amount of the damages stipulated in a contract to be paid in the event one party breached the contract - Sum fixed by contract in case of contractual breach where actual damages are difficult to measure

Novation

- The change of one of the parties to a contract at the mutual agreement of the original parties - Termination of a contract and substitution of new contract with same terms but a new party - The substitution of a new party for one of the original parties to a contract, such that the prior contract terminates and a new one substitutes for it

Fraud

- The intentional or reckless false statement of a material fact, upon which the injured party relied, which induced the injured party to enter into a contract, to his or her detriment - Inducing another to contract as a result of an intentional or recklessly false statement of a material fact

Assignee

- The party to who the assignment is made - Person to whom contract right is assigned

Creditor beneficiary

- The person whom the promise of a contract owes an obligation or duty which will be discharged to the extent that the promisor performs the promise - A person who is not a party to a contract to whom the promisor of a contract owes an obligation

Executed contracts

- Those contract in which the terms have been fulfilled by the parties - Fully performed contract

Executory contracts

- Those contract in which the terms have not been completely executed or fulfilled by the parties - Contract not fully carried out by all parties

Formal contracts

- Those contract which must be in special or produced in a certain way, such as under seal - Contract with special form or manner of creation

Minors

- Those person under full legal age - Person under the legal age to contract - By most states [but not all] the standard under the age of eighteen

Bilateral contract

A contract which consists of mutual exchange of promises to perform future acts

Voidable contract

A contract which would be an enforceable agreement, but due to circumstances, may be set aside by one of the parties

Third party beneficiary

A person not party to a contract, but whom parties intend to benefit

Fiduciary

A relationship of trust and confidence, such as that which exists between partners in partnership

Breach of Contract

A situation in which one of the parties to a contract fails or otherwise refuses to perform the obligations established in that contract

Damages

A sum of money a wrongdoer must pay to an injured party

Donee beneficiary

A third party beneficiary to whom no legal duty is owed and for whom performance of contract

Gambling contracts

Agreement in which the parties win or lose, based on chance

Accord and Satisfaction

An agreement made and executed in satisfaction of the rights one has from a previous contract

Void Contract

An agreement of no legal effect

Legal tender

Any form of lawful money

Option

Binding promise to hold an offer open

Default

Breach of contractual obligation other than money

Usury

Charging higher interest rate than law allows

Parol evidence rule

Complete, written contract may not be modified by oral testimony unless upon evidence of fraud, accident, or mistake

Written contract

Contract in terms in writing

Oral contract

Contract in terms spoken

Joint contracts

Contract obligating or entitling two or more people together to performance under the contract

Simple contract

Contract with terms in writing

Fraud in execution

Defrauded party did not intend to enter into a contract but false statement made by other party induced contract signing

Fraud in the inducement

Defrauded party intended to make a contract but false statements were made about the terms or in obligations of the contract

Negotiable instrument

Document of payment, such as a check

Usurious contracts

Exceeding the maximum rate of interest which may be charged on loans

Breach

Failure or refusal to perform contractual obligations or agreements

Innocent Misrepresentation

False statement made in belief it is true

Passive fraud

Fraud caused by failure to disclose information when there is a duty to do so

Maximum contract rate

Higher legal rate of interest allowed

Legal rate of interest

Interest rate applied according to statute when no rate specified and interest is to be paid

Reformation

Judicial correction

Firm offer

Merchant's signed, written offer to sell or purchase goods saying it will be held open

Mutual mistakes

Mistake by both parties to a contract

Unilateral mistakes

Mistake by one party to a contract

Uncured default

Not all payments on an instrument fully made and not all made by due date

Recognizance

Obligation entered into before a court to do an act required by the law

Debt

Obligation to pay in money or goods

Tender of payment

Offer and ability to pay money owed as specified by contract

Tender of performance

Offer to perform in satisfaction of terms as specified in contract

Anticipatory breach

One party announces intention not to perform a contract prior to tome to perform

Parol evidence

Oral testimony

Active fraud

Party engages in action that causes the fraud

Convicts

Person found guilty by court of a major criminal offense

Incidental beneficiary

Person who unintentionally benefits from performance of contract

Insane

Persons who are afflicted with a serious mental disorder impairing their ability to function

Intoxication

Persons who are under the influence of alcohol [or drugs] to the extent that their judgment may be impaired

Forbearance

Refraining from doing something

Rejection

Refusal to accept

Discharge

Termination of a contract by performance, agreement, impossibility, acceptance of breach, or operation of law

Contractual Capacity

The necessity that the parties desiring to enter into contracts meet all the requirements

Assignor

The party making the assignment

Offeror

The party who initiates, or makes, an offer

Offeree

The person to whom an offer is made

Disaffirmance

The repudiation of, or election to avoid, a voidable contract

Rescind

To set a contract aside or cancel

Delegation

Transfer of duties from one person to another

Joint and Several Contracts

Two or more people bound jointly and individually by contract and who are entitled to recover individually and as a unit

Several contracts

Two or more people individually agree to perform obligation

Composition of creditors

When all of multiple creditors settle in full for a fraction of the amount owed

Concealment

Willful failure to disclose pertinent information