Unit 2 Vocab Flashcards
Contract
a legally enforceable agreement
Express Authority
the rights of an agent stated in the agreement creating an agency
Express Goods
those goods which are at the time of the contract in existence and owned by the seller
Express Warranties
the actual and definite statement of a seller either orally or in writing at the time of the sale
Implied Goods
the goods specified by the buyer and seller
Implied Authority
an agent’s authority to do things to carry out express authority
Implied Warranties
protections imposed by law arising automatically because the sale has been made
Implied Contract
a legally enforceable agreement in which the terms are set by the contract as to how performance is to be rendered
Bilateral Contract
a legally enforceable agreement which consists of mutual promises to perform future acts
Unilateral Contract
a contract formed when an act is done in consideration for a promise
Executory Contract
a legally enforceable agreement in which the terms have not been completely executed or fulfilled
Executed Contract
a legally enforceable agreement in which the terms have been fulfilled
Valid Contract
a contract which is legally enforceable
Void Contract
an agreement of no legal effect
Voidable Contract
a contract which would be an enforceable agreement but due to circumstances may be set aside by one of the parties
Unenforceable Contract
an agreement which is not enforceable by law
Offer
a proposal to make a contract
Offeror
the party to who initiates the offer
Offeree
the party whom the offer is made
Revocation
Cancellation of an instrument by the maker or drawer; rescinding an offer
Acceptance
an agreement to an offer resulting in a contract
Rejection
refusal to accept
Counteroffer
a change to an original offer that rejects the offer and becomes a new offer
Misrepresentation
false statement of material fact
Fraud
inducing another contract because of. an intentionally or recklessly false statement of material fact
Undue influence
improper influence that is asserted by one dominant person over another with out a threat of harm
Fiduciary Relationships
a person in a relationship of trust and confidence
Duress
removing one’s free will and obtaining consent by means of threat
Minor
those persons under legal age; for most state, the standard is under the age of 18
Disaffirmance
election to avoid a voidable contract
Ratification
approving of an act which was executed without authority; electing to be bound a voidable contract
Consideration
the bargained for exchange in a contract
Accord and Satisfaction
and agreement made and executed in satisfaction of the rights one has from a previous contract
Promissory Estoppel
an equitable doctrine and substitute for consideration that prevents the promiser from revoking the promise when the promisee justifiably relies to their detriment
Statue of Limitations
a law restriction the time within which an action may be brought to court
Usurious
exceeding the maximum rate of interest which maybe charged on loans
Antitrust Law
law which seek to promote competition among businesses
Statue of Fraud
law requiring certain contracts to be in writing to be enforceable
Real Property
land and those objects permanently attached to the land
Goods
moveable tangible personal property
Discharge
any method by which legal duty is extinguished
Breach of Contract
failure or refusal to perform contractual obligations
Nominal Damages
a small amount awarded when there is a technical breach but no injury
Compensatory damages
an award paid to the injured party to cover the exact amount of their loss, but no more
Liquidated damages
reasonable damages stipulated in the contract to be paid in the event of a breach
Puntitive damages
an award paid to the plaintiff to punish the defendant
Rescission
to set aside or cancel a contract
Specific performance
a remedy by which the court requires the breaching party to perform the contract
Assignment
a means whereby one party in a contract conveys rights to another person, who is not a party to the original contract
Injunction
a judicial order or decree forbidding certain conduct
Assignor
the party assigning rights in a contract to a third party
Assignee
the party to whom rights in a contract are assigned
Creditor Beneficiary
a third party beneficiary owed debt by a party to a contract
Third party beneficiary
person not a party to a contract, but whom parties intend to benefit
Donee Beneficiary
a third party beneficiary whom no legal duty is owed, and performance is a gift
