Contract terms Flashcards
Contract
a written or spoken agreement, concerning employment, sales, or tenancy, that is intended to be enforceable by law.
Bilateral Contract
a binding agreement between two parties, one that promises to perform an act in exchange for something else.
oral contract
a legally binding spoken agreement between two or more parties which is not written down - ie. harder to enforce since they are not always legally binding
written contract
an agreement made on a printed document that has been signed by both parties. Written contracts are legally binding.
implied contract
a legally-binding obligation that derives from the actions, conduct, or circumstances of one or more parties in an agreement.
meeting of the minds
refers to the intentions of the parties forming the contract. (where there is a common understanding in the formation of the contract)
offer
a promise in exchange for performance by another party. An offer can be revoked or terminated under certain conditions.
invitation to treat
An invitation to another person to make an offer to contract.
Lapse
a termination of contract due to failure of events, neglect, or time
Revoke
the act of recall or canceling of a contract.
Counter offer
an offer made in response to a previous offer by the other party during negotiations for a final contract
acceptance
response to an offer makes the contract binding. occurs when an offeree agrees to be mutually bound to the terms of the contract by giving consideration, or something of value like money, to seal the deal.
Unilateral contract
a contract created by an offer that can only be accepted by performance. ex finding a missing dog for reward - one party accepted the offer through a performance without the others knowledge.
consideration
the exchange of one thing of value for another. day to day contracts - three types, past present, and future.
gratuitous promises
a promise that is made without consideration and is usually unenforceable. normally one party promises to do something without receiving anything in exchange.
present considerations
payment given at the time of exchange or work
past considerations
payment given after time of exchange or work (not legally binding)
future considerations
payment given on agreement of work (before time of exchange or work)
Capacity
the legal competence of a person to enter into a valid contract. (ex. must be of sound mind)
necessaries
essentials required for subsistence or survival. It includes all that is reasonably needed for maintaining a certain lifestyle. depends on one’s age, status, and the norms of a particular society.
voidable contract
a formal agreement between two parties that may be rendered unenforceable for a number of legal reasons.
Ratification
Acceptance or confirmation of an act or agreement that was signed (executed) by the confirming party itself.
Rescission
an equitable remedy which allows a contractual party to cancel the contract. (the unwinding of a transaction)
contrary to public policy
contract that promotes breach of the law (ex. if it harms the state or its citizen)
Misrepresentation
an untrue or misleading statement of fact made during negotiations by one party to another
Caveat emptor
Latin for “let the buyer beware.” A doctrine that often places on buyers the burden to reasonably examine property before purchase and take responsibility for its condition.
Duress
when one party applies pressure to course another using a threat of violence, causing them to do things they would not normally do
Undue influence
involves one person taking advantage of a position of power over another person. This inequity in power between the parties can vitiate one party’s consent as they are unable to freely exercise their independent will
unconscionability
a contract that is one that is so one-sided that it is unfair to one party and therefore unenforceable under law.
Fraudulent misrepresentation
party/seller knowingly makes an untrue or misleading statement of fact made during negotiations
innocent misrepresentation
party/seller makes an untrue or misleading statement that they believe to be true during negotiations
common mistake
where both parties hold the same mistaken belief of the facts of a contract
Frustration of a contract
a contract that is incapable of being performed due to an unforeseen event
Breach of contract
A failure of a party to perform his or her obligations as agreed to within the contract
Mitigation of loss
legal term meaning keep your losses to a minimum. So even if you are the innocent victim of a breach of contract you are under a duty to keep your losses down
Liquidated damages
damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach
Specific performance
an equitable remedy in which one party is forced to fulfill the contract by the courts
Express condition
created through the agreement of the parties, a condition that the parties have reduced to writing.
Disclaimer Clause
statement that is used to specify or limit the scope of obligations and rights that are enforceable in a contract
Right of lien
official claim or charge against funds for payment of a debt or an amount owed for services rendered. (usually a formal document signed by the party to whom money is owed )
Misleading advertising
refers to a manufacturer’s use of confusing, misleading, or blatantly untrue statements when promoting a product
Competition Bureau
prohibit agreements between two or more persons to prevent or lessen competition
Cartel
an agreement of companies or sections of companies having common interests to form an association or a cartel (basically illegal price fixing)
cooling off period
An interval of time during which no action of a specific type can be taken by either side in a dispute. or a certain amount of time to change your mind about a contract
Full disclose
a legal requirement in various situations, that seeks to balance the negotiating power of both parties to a transaction through equal possession of relevant information. (such as real estate transactions and prenuptial agreements,)
Lease
A contractual agreement by which one party conveys an estate in property to another party, for a limited period
Security deposit
a sum of money held in trust as an initial part-payment in a purchasing process used to pay for damages to property
Rent control
a government program that places a limit on the amount that a landlord can demand for leasing a home or for renewing a lease
Union
A defined group of employees formed for the purposes of representing those employees with the employer as to the terms of a collective contract of employment.
Just Cause
misconduct of an employee which justifies the immediate termination of the employment contract.
WHIMIS
short form for Workplace Hazardous Materials Information System. It is a comprehensive plan for providing information on the safe use of hazardous materials used in Canadian workplaces.
Collective bargaining
an agreement in writing between an employer and a trade union setting forth the terms and conditions of employment
misrepresentation of age
law that states minors cannot give up their legal rights in a contract
Parental liability
parents are liable for their children when considered minors
breach of condition
when a fundamental part of a contract is not fulfilled
breach of warranty
when a minor part of a contract is not fulfilled
Injunction
court order remedy that stops defendant from doing something specific
