Contract terms

Question 1

Act of God

Answer 1

An unexpected and uncontrollable natural event or force, such as a flood or earthquake, that causes unavoidable damage or prevents fulfillment of contractual obligations. Also known as force majeure.

Question 2

Agent

Answer 2

A person or entity authorized to act on behalf of another person or entity, known as the principal, in legal or business matters

Question 3

Amendment

Answer 3

A formal change or modification to the terms of an existing contract.

Question 4

Arbitration

Answer 4

A method of resolving disputes outside of court, where a neutral third party, known as an arbitrator, hears the arguments from both sides and makes a binding decision.

Question 5

Assignment

Answer 5

The transfer of rights, interests, or obligations from one party to another under a contract or agreement.

Question 6

Binding

Answer 6

Creating a legally enforceable obligation or agreement. (Both parties must follow the law)

Question 7

Breach

Answer 7

The failure to fulfill or comply with the terms or conditions of a contract, resulting in a violation of the agreement.