Business Law Vocabulary Flashcards
Undue influence
When someone uses their power or control over another person to make them do something they normally wouldn’t do
Duress
When someone uses threats (physical or forceful) or psychological pressure to force someone to act against their will
Coercion
The practice of persuading someone to do something using force or threats
Compulsion
The action or state of forcing or being forced to do something
Ratify
To give formal consent or confirming
Recission
The act of canceling a contract
Mutual recission
When both parties agree to release each other from a contract
Statute of Limitations
A law that sets a time limit (generally from 4 to 6 years) for filing a lawsuit or prosecuting a crime
Statute of Frauds
A law that requires certain contracts and their terms be in writing and signed by the parties being sued
Breach
Breaking the terms of a contract
Minor Breach
Breaking a partial part of contract. Typically, most of the contract is fulfilled with the exception of a minor term
Material Breach
Breaking a contract where it affects the contract’s purpose and prevents the other party from receiveing what was agreed to
Anticipatory Breach
Breaking a contract in which a party indicates that they will not be able to fulfill their obligations before the actual deadline
Substantial Breach
Breaking a contract due to dissatisification in good faith
Substanial Performance
Nonbreaching party got most of what was bargained for
Guaranty
A legal written agreement in which there is a promise to pay back a loan
Executory
A contract or task that is not yet fully performed rather it is in the process of being completed
Contemporaneous Agreement
A legal document between at least two parties that governs the terms and conditions of events occuring simultaneously
Fungible
A product or commodity that can be replaced by another identical item
Inadvertent
Unintentional
Liquidated Damage
A specified amount of money that will be owed if someone doesn’t do/perform what they said
Express warranty
An oral or written guarantee from a seller or manufacturer that a product will meet certain standards
Implied Waranty of Merchantability
What do you have?
When a seller sells something already
Implied Waranty of Fitness
What’s fit for me?
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
Tender of Performance
An offer to attempt to do what is required under a contract
Perfect Tender Doctrine
When a buyer may reject goods if they do not conform to the contract any way
Replevy
To recover
Power of Attorney
A boss’s (i.e. principal) written authorization granting an agent authority to enter into a binding contract on behalf of the boss
Indemification
Compensation for losses or damages
Actual Authority
Authority the agent reasonably believes he/she has based on communication from the principal
Surety
A person like a cosigner who takes responsibility for another’s performance/obligation
Cosurety
A person who shares responsibility for another’s performance/obligation
Subrogation
Enforcement of the creditor’s rights against the principal debtor
Composition of Creditors
An agreement between a debtor and at least two creditors to take less than fully payment of debts owed to creditor
Assignment for the Benefit of Creditors
A transfer of some or all of debtor’s property to a trustee who then uses the property to pay the creditors
Fraudulent Conveyance
An illegal transfer of property or assets to secure payment of debt or services
Lien
A legal claim against a person’s property or assets to secure payment of debt or services
Lienholder
A party that holds the claim to a property until the loan is repaid or other conditions are met
Unilateral Mistake
Occurs when the nonmistaken party knew or should have known of a mistake
Mutual Mistake of Fact
Occurs when both parties are mistaken about the same material fact within their contract
Nexus
The connection between a business and a jurisdiction to impose taxes or legal obligations on the business
