Business Law Vocabulary

Question 1

Undue influence

Answer 1

When someone uses their power or control over another person to make them do something they normally wouldn’t do

Question 2

Duress

Answer 2

When someone uses threats (physical or forceful) or psychological pressure to force someone to act against their will

Question 3

Coercion

Answer 3

The practice of persuading someone to do something using force or threats

Question 4

Compulsion

Answer 4

The action or state of forcing or being forced to do something

Question 5

Ratify

Answer 5

To give formal consent or confirming

Question 6

Recission

Answer 6

The act of canceling a contract

Question 7

Mutual recission

Answer 7

When both parties agree to release each other from a contract

Question 8

Statute of Limitations

Answer 8

A law that sets a time limit (generally from 4 to 6 years) for filing a lawsuit or prosecuting a crime

Question 9

Statute of Frauds

Answer 9

A law that requires certain contracts and their terms be in writing and signed by the parties being sued

Question 10

Breach

Answer 10

Breaking the terms of a contract

Question 11

Minor Breach

Answer 11

Breaking a partial part of contract. Typically, most of the contract is fulfilled with the exception of a minor term

Question 12

Material Breach

Answer 12

Breaking a contract where it affects the contract’s purpose and prevents the other party from receiveing what was agreed to

Question 13

Anticipatory Breach

Answer 13

Breaking a contract in which a party indicates that they will not be able to fulfill their obligations before the actual deadline

Question 14

Substantial Breach

Answer 14

Breaking a contract due to dissatisification in good faith

Question 15

Substanial Performance

Answer 15

Nonbreaching party got most of what was bargained for

Question 16

Guaranty

Answer 16

A legal written agreement in which there is a promise to pay back a loan

Question 17

Executory

Answer 17

A contract or task that is not yet fully performed rather it is in the process of being completed

Question 18

Contemporaneous Agreement

Answer 18

A legal document between at least two parties that governs the terms and conditions of events occuring simultaneously

Question 19

Fungible

Answer 19

A product or commodity that can be replaced by another identical item

Question 20

Inadvertent

Answer 20

Unintentional

Question 21

Liquidated Damage

Answer 21

A specified amount of money that will be owed if someone doesn’t do/perform what they said

Question 22

Express warranty

Answer 22

An oral or written guarantee from a seller or manufacturer that a product will meet certain standards

Question 23

Implied Waranty of Merchantability

What do you have?

Answer 23

When a seller sells something already

Question 24

Implied Waranty of Fitness

What’s fit for me?

Answer 24

When a seller knows of a particular purpose for the goods being sold and the buyer relies on the seller to choose goods suitable for that purpose

Question 25

Tender of Performance

Answer 25

An offer to attempt to do what is required under a contract

Question 26

Perfect Tender Doctrine

Answer 26

When a buyer may reject goods if they do not conform to the contract any way

Question 27

Replevy

Answer 27

To recover

Question 28

Power of Attorney

Answer 28

A boss's (i.e. principal) written authorization granting an agent authority to enter into a binding contract on behalf of the boss

Question 29

Indemification

Answer 29

Compensation for losses or damages

Question 30

Actual Authority

Answer 30

Authority the agent reasonably believes he/she has based on communication from the principal

Question 31

Surety

Answer 31

A person like a cosigner who takes responsibility for another's performance/obligation

Question 32

Cosurety

Answer 32

A person who shares responsibility for another's performance/obligation

Question 33

Subrogation

Answer 33

Enforcement of the creditor's rights against the principal debtor

Question 34

Composition of Creditors

Answer 34

An agreement between a debtor and at least two creditors to take less than fully payment of debts owed to creditor

Question 35

Assignment for the Benefit of Creditors

Answer 35

A transfer of some or all of debtor's property to a trustee who then uses the property to pay the creditors

Question 36

Fraudulent Conveyance

Answer 36

An illegal transfer of property or assets to secure payment of debt or services

Question 37

Lien

Answer 37

A legal claim against a person's property or assets to secure payment of debt or services

Question 38

Lienholder

Answer 38

A party that holds the claim to a property until the loan is repaid or other conditions are met

Question 39

Unilateral Mistake

Answer 39

Occurs when the nonmistaken party knew or should have known of a mistake

Question 40

Mutual Mistake of Fact

Answer 40

Occurs when both parties are mistaken about the same material fact within their contract

Question 41

Nexus

Answer 41

The connection between a business and a jurisdiction to impose taxes or legal obligations on the business