BUSINESS LAW - CHAPTER 11 (Contract Consideration, Capacity and Legality)

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BUSINESS LAW - CHAPTER 11 (Contract Consideration, Capacity and Legality)
2014-03-25 14:37:27
BusineesContracts Law

Business Law Contracts
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  1. Consideration
    • The value given in return for a
    • promise or performance in a contractual agreement.
  2. Forbearance 
    • The act of refraining from an
    • action that one has a legal right to undertake.
  3. Rescission
    • A remedy whereby a contract is
    • canceled and the parties are returned to the positions they occupied before the
    • contract was made.
  4. Accord and Satisfaction
    • A common means of settling a
    • disputed claim, whereby a debtor offers to pay a lesser amount than the
    • creditor purports to be owed.
  5. Liquidated Debt
    • A debt whose amount has been
    • ascertained, fixed, agreed on, settled, or exactly determined.
  6. Release
    • An agreement in which one party
    • gives up the right to pursue a legal claim against another party.
  7. Covenant not to Sue
    • An agreement to substitute a
    • contractual obligation for some other type of legal action based on a valid
    • claim.
  8. Capacity
  9. Emancipation
    • In regard to minors, the act of
    • being freed from parental control.
  10. Disaffirmance
    • The legal avoidance, or setting
    • aside, of a contractual obligation.
  11. Ratification
    • A party’s act of accepting or
    • giving legal force to a contract or other obligation entered into by another
    • that previously was not enforceable.
  12. Necessaries
    • Necessities required for life,
    • such as food, shelter, clothing, and medical attention.
  13. Usury
    • Charging an illegal rate of
    • interest.
  14. License
    • An agreement by the owner of
    • intellectual property to permit another to use a trademark, copyright, patent,
    • or trade secret for certain limited purposes.
  15. Covenant not to Compete
    • A contractual promise of one
    • party to refrain from conducting business similar to that of another party for
    • a certain period of time and within a specified geographical area.
  16. Unconscionable 
    • A contract or clause that is void
    • on the basis of public policy because one party was forced to accept terms that
    • are unfairly burdensome and that unfairly benefit the stronger party.
  17. Procedural Unconscionability
  18. Substantive Unconscionability
  19. Exculpatory Clause
    • A clause that releases a
    • contractual party from liability in the event of monetary or physical injury,
    • no matter who is at fault.
  20. Divisible Contract