17B - Handling Legal Issues

Question 1

Any requested change to contract terms.

Answer 1

contract change requests

Question 2

A promise, explicit or implied, that goods or services will meet a predetermined standard. The standard may cover reliability, fitness for use, safety, and so on.

Answer 2

warranty

Question 3

The giving up of a contract right, even inadvertently.

Answer 3

waiver

Question 4

Failure to meet some or all of the obligations of a contract. It may result in damages paid to the injured party, litigation, or other ramifications.

Answer 4

breach of contract

Question 5

A legal contract that outlines confidential material, information, or knowledge that two parties wish to share only with each other. It is used to protect confidential and proprietary information, often including trade secrets, from being shared with other parties.

Answer 5

NDA

Question 6

What does NDA stand for?

Answer 6

Non-Disclosure Agreement

Question 7

A document sent to an individual or a business to stop (___) allegedly illegal activities and to not undertake them again (___). Such a letter can be used as a warning or impending legal action if it is ignored.

Answer 7

cease-and-desist letter

Question 8

A document that outlines an agreement between two parties before the agreement is finalized. It is sometimes used to highlight fundamental terms of an agreement before potentially expensive legal negotiations are begun, or to indicate that the parties have begun negotiations.

Answer 8

letter of intent

Question 9

Translated from French as “superior force,” this common clause is added to contracts that address the actions of both parties when an extraordinary circumstance beyond the control of either party occurs, such as war, strike, or natural disasters usually deemed as acts of God.

Answer 9

force majeure clause

Question 10

A warranty in which the predetermined standard for quality or performance is specified, either in a formal warranty or in the manufacturer’s description of the product.

Answer 10

Express warranty

Question 11

A warranty in which the predetermined standard for quality or performance exists but is not specified; it takes effect if the buyer depends on the vendor’s expertise when making a purchasing decision.

Answer 11

implied warranty

Question 12

Implied warranties that require goods to be fit for ordinary usage.

Answer 12

Warranties of merchantability

Question 13

Implied warranties that require goods to be fit for the usage that was intended by the buyer.

Answer 13

Warranties of fitness for purpose

Question 14

An unavoidable indication that the other party will not be able to product the performance necessary to fulfill an agreed upon contract

Answer 14

anticipatory breach

Question 15

A breach of contract so serious that it negates the very foundation of the contract.

Answer 15

fundamental breach

Question 16

A serious breach of contract that prevents the injured party from benefiting from the contract; the injured party can claim damages, but is no longer obligated to fulfill any contract commitments.

Answer 16

material breach

Question 17

A breach of contract in which there is no resulting damage to the injured party; because there are no damages, the injured party is not entitled to receive compensation.

Answer 17

immaterial breach