Business Law 14.txt

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Business Law 14.txt
2009-11-16 16:11:10
Chapter 15

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  1. privity of contract
    state of two specified parties being in a contract
  2. assignment
    the transfer of contractual rights by an obligee to another party
  3. assignee
    a party to whom a right has been transfered
  4. Assignment of rights

    transfer of contractual rights

  5. Anti assignment law
    a clause that prohibits the assignment of rights under the contract
  6. delegation of duties
    a transfer of contractual duties by an obligor to another party for performance
  7. delegator
    an obligor who has transferred his or her duty
  8. delegatee
    a party to whom a duty has been transferred
  9. assumption of duties
    a situation in which a delegation of duties contains the term assumption, I assume the duties, or other similar language. In such a case, the delegates is legally liable to the obligee for non proformance
  10. anti-delegation
    clause that prohibits the delegation of duties under the contract
  11. intended third party bene
    3rd party who is not in privity of contract but who has rights under the contract and can enforce the contract against promisor
  12. donee beneficiary contract
    a contract entered into with the intent to confer a benefit or gift on an intended 3rd party
  13. donee beneficiary
    thrid party on whom a benefit is to be conferred
  14. creditor beneficiary contract
    contract that arises 1) a debtor borrows money 2)debtor signs an agreement to pay back the money plus interest 3) the debtor sells the item to a third party before the loan is paid off and 4) the third pary promises the debtor that he or she will pay the remainder of the loan to the creditor
  15. creditor beneficiary
    an original creditor who becomes a beneficiary under the debtor's new contract with another party
  16. incidental beneficiary
    a party who in unintentionally benefited by other people's contracts
  17. covenant
    an unconditional promise to perform
  18. condition
    a qualification of a promise that becomes a covenant if it is met. there are three types of conditions
  19. condition precedent
    a conditiont hat requires the occurrence of an event before a party is obligated to perform a duty under a contract
  20. personal satisfaction test
    a subjective test that applies to contracts involving personal taste and comfort
  21. reasonable person test
    an objective test that applies to commercial contracts and contracts involving mechanical fitness
  22. condition subsequent
    condition whose occurence or nonoccurrence of a specific event automatically excuses the performance of an existing contractual duty to perform
  23. concurrent condition
    condition that exists when the parties to a contract must render performance simultaneously; each party's absolute duty to perform is conditioned on the other party's absolute duty to perform
  24. impied in fact condition
    a condition that can be implied from the circumstances surronding a contract and the parties conduct
  25. novation agreement
    an agreement that substitutes a new party for one of the original contracting parties and relieves the exiting party of liability on the contract
  26. accord and satisfaction
    the settlement of a contract dispute
  27. impossibility of performance
    nonperformance that is excused if a contract becomes impossible to perform. It must be objective impossibility, not subjective.
  28. force majeure clause
    a clause in a contract in which the parties specify certain events that will excuse nonperformance
  29. commercial impracticability
    nonperformance that is excused if an extreme or unexpected development or expense makes it impractical for the prmisor to perform
  30. statute of limitations
    a statute that establishes the time perid during which a lawsuit must be brought; if the lawsuit is not brought within this perid, the injured party loses the right to sue