Business Law Exam 2

  1. Acceptance
    Assent of buyer to become owner of goods; assent to an offer resulting in a contract; drawee's signed agreement to pay draft.
  2. Assignor
    Person making an assignment
  3. Assignee
    Person to whom contract right is assigned
  4. Breach
    Failure or refusal to perform contractual obligations
  5. Compensatory Damages
    Amount equal to the loss sustained
  6. Liquidated Damages
    Sum fixed by contract for breach where actual damages are difficult to measure
  7. Punitive Damages
    Amount paid to one party to punish the other
  8. Nominal Damages
    Small amount awarded when there is technical breach but no injury
  9. Composition of Creditors
    When all of multiple creditors settle in full for a fraction of the amount
  10. Consideration
    What promisor requires as the price for a promise
  11. Contract
    Legally enforceable agreement
  12. Contracts made by Intoxicated People
    If the person is so intoxicated that they cannot understand the meaning of their acts are voidable. The rule regarding the capacity of an intocicated person also applies to people using drugs.
  13. Counteroffer
    Offeree's response that rejects offer by varying its items
  14. Creditor Beneficiary
    Person to whom promisee owes obligation, which is discharged if promisor performs
  15. Donee Beneficiary
    Third-Party beneficiary for whom performance is a gift
  16. Incidental Beneficiary
    Person who unintentionally benefits from the performance of a contract
  17. Damages
    Sum of money a wrongdoer must pay to an injured party
  18. Debt
    Obligation to pay money
  19. Default
    Breach of contractual obligation
  20. Delegation
    Transfer of duties
  21. Disaffirmance
    Repudiation of a voidable contract
  22. Donee
    Person who recieves a gift
  23. Creditor
    Person who receives guaranty
  24. Duress
    Obtaining consent by means of threat
  25. Executed Contract
    Fully performed contract
  26. Executory Contract
    Contract not fully carried out
  27. Express Contract
    Contract the terms of which are specified in words
  28. Forbearance
    Refraining from doing something
  29. Fraud
    Inducing another to contract as a result of an intentionally or recklessly false statement of a material fact
  30. Joint Contract
    Agreement obligating or entitling two or more people together to performance
  31. Joint and Several Contracs
    Agreement by which two or more people are bound jointly and individually
  32. Several Contract
    Two or more people individually agree to perform obligation
  33. Legal Rate
    Interest rate applied when no rate specified
  34. Maximum Contract Rate
    Highest legal rate of interest
  35. Misrepresentation
    False statement of a material fact
  36. Mutual Mistake
    Mistake made by both parties to a contract
  37. Necessaries
    Items required for living at a reasonable standard
  38. Novation
    Termination of a contract and substitution of a new one with same terms but new party
  39. Offer
    A proposal to make a contract
  40. Offeror
    Person who makes an offer
  41. Offeree
    Person to whom offer is made
  42. Parol Evidence
    Oral testimony
  43. Promissory Estoppel
    • Substitute for consideration when another acts in reliance on promisor's promise
    • The elements of promissory estoppel include:
    • 1. A promise is made
    • 2. The promisor reasonably expectsthe promise to induce action by the promisee
    • 3. The promisee does act
    • 4. Justice requires enforcement of the promise
  44. Quasi Contract ( Implied in Law Contract)
    Imposition of rights and obligations by law without a contract
  45. Ratification
    Approval of unauthorized act; adult indicating contract made while a minor is binding
  46. Recognizance
    Obligation entered into before a court to do an act required by law
  47. Reformation
    Judicial correction of a contract
  48. Requirements of a Valid Offer
    • 1. The offer must be definite
    • 2. It must appear to be seriously intended
    • 3. Itr must be communicated to the offeree
  49. Rescind
    Set aside or cancel
  50. Specific Performance
    Carrying out the terms of contract
  51. Statute of Frauds
    Law requiring certain contracts to be in writing
  52. Statute of Limitations
    Time within which right to sue must be exercised or lost
  53. Tender of Performance
    Offer to perform in satisfaction of terms of contract
  54. Undue Influence
    Person in special relationship causing another's action contrary to free will
  55. Unilateral Mistake
    Mistake by one party to a contract
  56. Unjust Enrichment
    One benefiting unfairly at another's expense
  57. Usury
    Charging higher rate of interest than law allows
  58. Void Agreement or Contract
    Enforceable agreement that may be set aside by one party
  59. Voluntary Subscription
    The promise of each person is generally held to be enforceable
Card Set
Business Law Exam 2
Business Law Exam 2 Vocabulary