| A | B |
|---|
| compounding a crime | Accepting a proportion of their claims as full payment. |
| disaffirmance | Refusal to carry out a voidable contract. |
| duress | Overpowering of another's free will through coercion or by illegal imprisonment. |
| fraud | Intentional misrepresentation of fact, relied upon by another to her or his injury. |
| genuine assent | Consent that is not negated by fraud, duress, undue influence, or mistake. |
| legal rate of interest | Rate of interest set by statute. |
| material fact | Fact that influences a decision. |
| maximum rate of interest | The highest rate of interest that state law permits lenders of money to charge. |
| mutual mistake | The situation in which both parties are wrong about some important facts; either party may disaffirm. |
| necessaries | Goods and services essential to maintain one's lifestyle. |
| personal opinion | In the buyer-seller relationship, a seller's claims about a product that are not statements of fact and should not be taken as a serious endorsement. |
| ratification | Approval of a voidable contract; also, approval of a previously unauthorized act. |
| small loan rate of interest | A high rate of interest (typically 36 percent a year) that the state permits licensed loan companies and pawnbrokers to charge on small loans; established s a means to protect people against the unconscionably high rates (often 100 percent or more annually) charged by criminal loan sharks. |
| undue influence | Overpowering another's free will to take unfair advantage in a contract. |
| unilateral mistake | Important contractual mistake made by only one of the parties. |
| usury | Charging a higher interest rate than that permitted by law. |
| wager | A bet on the uncertain outcome of an event. |
