Business Law Ch 16

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Business Law Ch 16
2013-07-16 20:52:52
Business Law 16

Business Law Ch 16
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  1. adhesion contract
    A contract created by a party to an agreement that is presented to the other party on a take-itor- leave-it basis. Such contracts are legal but are sometimes rescinded on the grounds of unconscionability and the absence of one party’s free will to enter a contract.
  2. capacity
    The legal ability to enter into a binding contract.
  3. covenants not to compete
    An agreement not to compete against a party for a set period of time within a designated geographic area.
  4. exculpatory clause
    A clause in a contract that basically frees one party (usually the drafter of the agreement) from all liability arising out of performance of the contract; generally based on factors such as consumer ignorance or a great deal of unexplained fine print that serve to deprive the less powerful party of a meaningful choice.
  5. gambling
    Agreements in which parties pay consideration (money placed during bets) for the chance, or opportunity, to obtain an amount of money or property.
  6. indivisible contract
    A contract that cannot be divided and must be performed in its entirety.
  7. in pari delicto
    In equal fault.
  8. procedural unconscionability
    Unconscionability that derives from the process of making a contract.
  9. Sabbath laws
    A law that prohibits the performance of certain activities on Sundays.
  10. severable contracts
    A contract whose terms can be divided.
  11. substantive unconscionability
    Unconscionability that derives from contract terms that are so one-sided, unjust, or overly harsh that the contract should not be enforced.
  12. unconscionable
    A term applied to a contract in which one party has so much more bargaining power than the other party that the powerful party dictates the terms of the agreement and eliminates the other party’s free will.
  13. usury
    The lending of money at an exorbitant or unlawful rate of interest.