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 assignement
  3. Assignee
    person to whome contract right is assigned
  4. What is the difference from Assignee and Assignor?
  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. What are the 4 types of damages?
    Compensatory, liquidated, punitive and nominal
  10. Composition of creditors
    when all of multiple creditors settle in full for a fraction of the amount owed
  11. Consideration
    what proisor requires as the price for a promise
  12. Contract
    legally enforceable agreement
  13. are voidable
    Contracts made by intoxicated people
  14. Counteroffer
    offeree's response that rejects offer by varying it's terms
  15. Creditor beneficiary
    person to whom promisee owes obligation, which is discharged if promisor preforms
  16. donee beneificary
    third-party beneficiary for whom performance is a gift
  17. incidental beneficiary
    person who unintentionally benefits from performance of contract
  18. Damages
    sum of money a wrongdoer must pay to an injured party
  19. debt
    obligation to pay money
  20. default
    breach of contractual obligation
  21. delegation
    transfer of duties
  22. Disaffirmance
    repudiation of a voidable contract
  23. donee beneficiary
    third-party beneficary for whom performance is a gift
  24. Duress
    obtaining consent by means of a threat
  25. Executed contract
    fully performed contract
  26. executory contract
    contract nor fully carried out
  27. express contract
    contract the terms of which are specified in words
  28. forbearance
    refaining 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
    contract obligating or entitling two or more people together to performance
  31. joint and several contract
    is one in which two or more persons are bound both jointly and severally
  32. several contract
    two or more people individually agree to perform obligation
  33. legal rate
    intrest rate applied when no rate specified
  34. maximum contract rate
    highest legal rate of intrest
  35. misrepresntation
    false statement of a material fact
  36. mutual mistake
    mistake 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. offeree
    person to whom offer is made
  41. offeror
    person who makes an offer
  42. offeror
    a proposal to make a contract
  43. parol evidence
    oral testimony
  44. promissory estoppel
    substitute for consideration when another acts in reliance on promisor's promise
  45. quasi contract (implied in law contract)
    imposition of rights and obligations by law without a contract
  46. ratification
    approval of unauthorized act; adult indicating contract made while a minor is binding
  47. recognizance
    obligation entered into before a court to do an act required by law
  48. reformation
    judicial correction of a contract
  49. requirements of a valid offer
    • 1. the offer must be definite
    • 2. it must appear to be seriously intended
    • 3. it must be communicated to the offeree
  50. rescind
    set aside or cancel
  51. specific performance
    carrying out the terms of contract
  52. statue of frauds
    law requiring certain contracts to be in writing
  53. statue of limitations
    time within which right to sue must be exercised by stock
  54. tender of performance
    offer to perform in satisfaction terms of contract
  55. undue influence
    person in special relationship causing another's action contary to free will
  56. unilateral mistake
    mistake by one party to a contract
  57. unjust enrichment
    one benifiting unfairly at another's expense
  58. usury
    charging higher rate of intrest than law allows
  59. void agreement
    an agreement with no legal effect is voidable,it's also not enforeable in a court of law.
  60. voidable contract
    enforceable agreement that may be set aside by one party
  61. voluntary subscription
    a general rule, a promise must be supported by consideration. charitable enterprises are financed by voluntary subscriptions of many persons, the promise of each person is generally held to enforceable. When a number of people make pledges to or subscribe to a charitable association or to a church, for example, the pledges or subscriptions are binding.
Card Set
Exam 2