HMT 4150 Chapter 4

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  1. Absolute
    Perfect or complete
  2. Acceptance
    An expression of agreement by the offeree to the terms of an offer.
  3. Agreement not to compete
    In the sale of a business, a contractual provision barring the seller from competing with the buyer in the geographical area where the business is located ofr a sepcified period of time.
  4. Antitrust Laws
    Laws that attempt to ensure that open competition is preserved.
  5. Attrition Clause
    In reference to a room reservation contract between an association hosting a convention and a hotel, a contractual provision obligating the organiztion to com[ensate the hotel if less that a specified number of rooms are rented by conventioneers.
  6. Breach of Contract
    The failure to perform some contracted act.
  7. Capacity to Contract
    The ability to understand the terms of a contract and to understand also that failure to perform its terms can lead to legal liability.
  8. Compensatory Damages
    Out-of-pocket expenses including doctor bills and lost wages, and compensation for pain and suffering, loss of enjoyment of life, loss of consortium, and loss of services.
  9. Condition
    An event on which a contractual duty in contingent.
  10. Consideration
    Something of value exchanged for something else of value.
  11. Contract
    An agreement between two or more people that is enforceable by court.
  12. Counteroffer
    A response to an offer that modifies one or more of its provisions.
  13. Damages
    The remedy sought by the injured party in a civil case.
  14. Duress
    Threats of harm if a person does not sign a contract.
  15. Easement
    The privilege of using someone else's land for some limited purpose.
  16. Forebearance
    Refraining from doing something you have a legal right to do.
  17. Forum Selection Clause
    A provision that identifies a specific location at which any lawsuit arising out of a contract must be brought.
  18. Fraud
    An intentional untruthful statement made to induce reliance by another person or for the purpose of isleading someone, usually for personal gain.
  19. Genuine Assent
    Concept that the parties involved in a contract must genuinely agree to the contract terms.
  20. Goodwill
    A favorable reputation producing an expectation of future business.
  21. Illusory
    A contractual term that fails to contain a firm commitment; a promise that is so indefinite that the party making it has not in fact committed to anything.
  22. Innocent Misrepresentation
    An untruthful statement that the speaker believes is accurate.
  23. Invitations to Negotiate
    Opening discussions that may or nay not lead to an offer for a subsequent contract.
  24. Mitigate
    Lessen; a rule that requres a plaintiff seeking to collect damages for breach of contract to prove an attempt was made to reduce or lessn losses and/or damages.
  25. Mutuality
    All parties to the contract are interested in the terms of a contract and intend to enter an agreement to which they will be legally bound.
  26. Mutual Mistake
    A mistake made by both parties.
  27. No-Cause Termination Clause
    A contract term that permits either party to terminate the contract for any or no reason.
  28. Offer
    A proposal to do or give something in exchange for something else.
  29. Offeree
    The person to who an offer is made.
  30. Offeror
    The person who make an offer.
  31. Parol
    Oral or spoken.
  32. Parol Evidence Rule
    What prevents the parties from successfully modifying a complete written contract with evidence of oral agreements made prior to signing the writing.
  33. Specific Performance
    A remedy for breach of contract requiring performance of the contract terms.
  34. Statute of Frauds
    The law requiring that certain contracts must be written to be enforceable.
  35. Tort
    A violation of a legal duty (a wrongful act) by one person that injures another.  (Breaches of contractual duties are not considered torts, however).
  36. Trade Usage
    Practices or modes of dealing that are generally adhered to in a particular industry, such that an expectation arises that they will be honored in a given transaction.
  37. Unilateral mistake
    An error made by one party to a contract as to the terms or performance.
  38. Valid
    Enforceable in court.  For a contract to be a valid, certain elements must exist, such as contractual capacity, mutuality, legality, consideration, proper form, and genuine assent.
  39. Voidable contract
    One that may be canceled at the option of one party (in this case, the person with the legal disability).
  40. Void Contract
    A contract that is unenforceable in court.
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HMT 4150 Chapter 4

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