Business Law Vocab 2.01

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Acceptance
Unqualified willingness by the offeree to go along with the offer
Benefits
Something that a party was not previously entitled to receive
Bilateral
Contains two promises
Capacity
Legal ability to enter into a contract
Consideration
Exchange of benefits and detriments by the parties to an agreements
Counteroffer
Any change in the terms of the offer
Death
Offeror dies
Detriments
Any loss suffered; anything given up
Duress
Overcoming a person’s free will by use of force or by threat of force or bodily harm
Economic Duress
Threats to a person’s business or income
Emancipation
Severing of the parent-child relationship
Express
Contract statement that may be written or oral
Firm Offer
a written offer for goods that states the period of time during which the offer will stay open
Forbearance
Not doing something that you have the right to do
Fraudulent Misrepresentation
Party to a contract deliberately makes an untrue statement of fact
Genuine Agreement(Assent)
A valid offer has been made by the offeror, and a valid acceptance has been exercised by the offeree
Illusory Promises
Clause or wording that allows party’s to escape from legal obligation
Implied
Contract that comes about from the actions of the parties
Insanity
Offeror is declared insane
Legality
Illegal contract
Mentally incapacitated
Lacking the ability to understand the consequences of his/her contractual acts
Mirror Image Rule
Terms of the acceptance must match exactly (mirror) the terms of the offer
Mutual Mistake (Bilateral Mistake)
Both parties are mistaken about an important fact
Nominal Consideration
Token amount in a written contract where either the parties cannot or do not wish to state the amount
Offer
Proposal by one party to another with intent to create a legal binding agreement
Offeree
offer made to this person
Offeror
makes the offer
Option
The offeree gives the offeror something of value in return for a promise to keep the offer open for a set period of time
Oral
Created by 2 or more people speaking to each other
Past Performance
An act that has already been performed cannot be consideration in a contract
Price Fixing
Competitors agree on certain price ranges withing which the will sell their products.
Rejection
Refusal by the offeree
Restrictive Covenant
Agreement not to compete in a region for a period of time
Revocation
Taking back of an offer by offeror
Statute of Frauds
requires that certain contracts be in writing to be enforceable
Unconscionable
So grossly unfair or oppressive that it would shock the conscience of the court
Undue Influence
Unfair and improper persuasive pressure within a relationship of trust
Unenforceable Contract
Contract that court will uphold, usually because of some rule of law
Unilateral
Contains a promise by only one person to do something if and when the other party performs a certain act
Unilateral Mistake
An error on the part of one of the parties
Usury
Charging too high of an interest rate
Valid Contract
includes all elements recognized by the courts
Void Contract
Without legal effect
Voidable Contract
One or more parties can out of contract for some legal reason
Written
Contract terms are written so that both parties know the exact terms
Categories: Business Law