| A | B |
|---|
| Statute of Frauds | Contracts required to be in writing |
| Parol Evidence Rule | Ensures that all parts are in writing |
| Acceptance | unqualified willingness to along with offer |
| Aliens | people who are living in this country but owe allegiance to another |
| Benefit | something a party was not previously entitled to |
| Bilateral Mistake | mistake by two parties |
| Capacity | legal ability to enter into a contract |
| Consideration | exchange of things of value |
| Counteroffer | changing terms of initial offer |
| Detriment | any loss suffered |
| Duress | overcoming a person’s will by force |
| Economic Duress | threats to a person’s business |
| Forbearance | not doing something that you have a legal right to do |
| Fraud | deliberate deception to secure an unfair gain |
| Genuine Agreement | valid offer met by valid acceptance |
| Gratuitous | free agreements |
| Interest | fee owed to borrower |
| Legality | contract must not violate statutes |
| License | legal document giving permission to do something |
| Minor | not reached legal age of capacity |
| Mirror Image Rule | acceptance must not change terms of offer |
| Misrepresentation | untrue statement of facts |
| Necessaries | necessities |
| Offer | proposal of one party to another |
| Promissory Estoppel | a promise enforceable without consideration |
| Ratify | approve |
| Rejection | refusal of offer |
| Rescind | cancel |
| Restrictive Covenant | a promise not to compete |
| Revocation | taking back offer |
| Unconscionable | great inequality |
| Undue Influence | unfair persuasive pressure on another person |
| Unilateral Mistake | error by one of the parties |
| Usury | charging more than maximum legal interest rate |
| Bilateral Contract | Binding Agreement created by an offer that is accepted by a promise of performance |
| Contract | Agreement that is legally effective and enforceable in court |
| Firm Offer | Signed writing by a merchant stating how long it is to stay open |
| Offeree | Party to whom an offer is made |
| Offeror | Makes the Offer |
| Option | Contract to leaven an offer open for a period of time in exchange for other consideration |
| Void | Of no legal effect |
| Genuine Assent | Consent or agreement not clouded by fraud, duress, undue influence, or mistake |
| Voidable | Contract in which the injured party can withdraw from the transaction |
| Fraudulent Misrepresentation | Deliberate false representation or concealment of a material fact, which is meant to and which does induce another to make an unfavorable contract |
| Ratification | Approval of a voidable contract |
| Rescission | To offer to give back what you received via a contract while demanding return of what you gave |
| Composition of Creditors | Agreement by all creditors to accept something less than the total amount of their claims in full satisfaction of a debtor's obligations |
| Nominal Consideration | Token consideration, which bears no relation to the real value of the contract |
| Gift | Voluntary transfer of ownership of property without consideration |
| Legal Value | Change in the legal position of a party as a result of the contract |
| Past Consideration | Act that has already been performed and thus cannot be consideration for a promise in the present |
| Promisor | Person who makes a promise |
| Promisee | Person to whom a promise is made |
| Requirements Contract | Contractural situation in which a seller agrees to supply all the needs of a particular buyer. |
| Emancipation | Severing of the parent-child relationship |
| Scope of Authority | Within the range of authorized acts |
| Intoxication | State of being unable to understand the consequences of a contract because of alcohol or drugs |
| Contractural Capacity | Ability to understand that a contract is being made and the consquences thereof |
| Disaffirmance | Giving back what you have received under a contract and requesting the return of what you gave |
| Minority | Period of time when a young person lacks full contractual capacity |
| Mental Incapacity | A severe mental illness, retardation, or senility |
| Age of Majority | Either 18, 19, or 21 in most states |
| Compounding of a Crime | To refrain from informing on or prosecuting an alledged crime in exchange for money or other valuable consideration |
| Executed Contract | Contract that has been fully performed |
| Lottery | Composed of prize, chance, and consideration |
| Price Fixing | When competing firms agree on the same price to be charged for a product or service |
| Wager | A bet on the outcome of an event |
| Competency License | License required of professionals certifying they can perform adequately |
| Quasi-Contract | Created by court action to prevent unjust enrichment |
| Contracts of Adhesion | "Take it or leave it" contracts |
| Revenue License | License granted only to earn revenue for the licensing body |
| Performance | The fulfillment of contractual promises as agreed |
| Annulment | A court order that cancels a marriage because of a problem that existed from the beginning of the marriage |
| Prenuptial Agreement | An agreement in which the marital partners-to-be typically give up any future claim they might have to part or all of the other's property |
| Tender | A ready, willing, and able offer to perform contractual obligations |
| Obligor | One who owes a duty under a contract |
| Specific Performance | The result of a court decree that the breaching party do exactly what was required under the contract |
| Discharge | A termination of duties that ordinarily occurs when the parties perform as promised |
| Remedy | The action or procedure followed to enforce a right or to get damages for an injury to a right |
| Mitigate the Damages | The injured party takes reasonable steps to minimize the harm done |
