Contract Baisics Flashcards
What is a contract?
Oral or written agreement to do or not to do a certain thing.
What do the statute of frauds determine?
Documents that must be in writing to be enforceable. (Ex. sale contracts, deeds and mortgages)
What is an assignment?
Transfer of contract rights from one party to another.
What is a novation?
Substitution of one contract for another and releases liability.
What is a liquidated damages clause?
Contractual provision that determines in advance the measure of damages if a party breaches the agreement.
What is specific performance?
Court action to force the completion of a contract.
What is rescission?
Contract occurs when there is an agreement between the contracting parties to waive all the remaining duties and to terminate the contract.
