Blaw Exam 3

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Accord and Satisfaction

Back 1

An agreement for payment (or other performance) between two parties, one of whom has a right of action against the other. After payment has been accepted or other performance has been made, the _____________ is complete and the obligation is discharged

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Consideration

Back 2

Generally. the value given in return for a promise of performance. The consideration, which must be present to make the contract legally binding, must be something of legally sufficient value and bargained for.

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Covenant not to sue

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An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim

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Forbearance

Back 4

The act of refraining from an action that one has a legal right to undertake

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Past Consideration

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An act done before the contract is made, which ordinarily, by itself, cannot be consideration for a later promise to pay for the act.

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Release

Back 6

A contract in which one party forfeits the right to pursue a legal claim against the other party

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Rescission

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A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties, by their conduct, or by court decree.

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Adhesion contract

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A "standard form" contract, such as that between a large retailer and consumer, in which the stronger party dictates the terms

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Age of Majority

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The age at which an individual is considered legally capable of conducting himself or herself responsibly. A person of this age is entitled to the full rights of citizenship, including the right to vote in elections. In contract law, one who is no longer an infant and can no longer disaffirm a contract.

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Blue laws

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State or local laws that prohibit the performance of certain types of commercial activities on Sundays.

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Contractual capacity

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The threshold mental capacity required by the law for a party who enters into a contract to be bound by that contract

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covenant not to compete

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Read about in book

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disaffirmance

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The legal avoidance, or setting aside, of a contractual obligation

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emancipation

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In regards to minors, the act of being freed from parental control; occurs when a child's parent or legal guardian relinquishes the legal right to exercise control over the child. Normally, a minor who leaves home to support himself or herself is considered emancipated.

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exculpatory clause

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A clause that releases a contractual party from liability in the event of monetary or physical injury, no matter who is at fault.

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in pari delicto

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At equal fault

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necessaries

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Necessities required for life, such as food, shelter, clothing, and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status

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Ratification

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The act of accepting and giving legal force to an obligation that previously was not enforceable

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Unconscionable

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A contract or clause that is void on the basis of public policy because one party, as a result of his or her disproportionate bargaining power, is forced to accept terms that are unfairly burdensome and that unfairly benefit and dominating party

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Usury

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Charging an illegal rate of interest

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Genuineness of Assent

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knowing and voluntary assent to the terms of a contract. If a contract is formed as a result of a mistake, misrepresentation, undue influence, or duress, genuineness of assent is lacking, and the contract will be voidable

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Innocent misrepresentation

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A false statement of fact or an act made in good faith that deceives and causes harm or injury to another

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negligent misrepresentation

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Any manifestation through words or conduct that amounts to an untrue statement of fact made in circumstances with which a reasonable and prudent person would not have done that which led to the misrepresentation, A representation made with an honest belief in its truth may still be negligent due to a lack of reasonable care in ascertaining the facts, the manner of expression, or the absence of the skill or competence required by a particular business or profession.

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scienter

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Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.

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collateral promise

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A secondary promise that is ancillary to a principal transaction or primary contractual relationship, such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be in writing to be enforceable.

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intergrated contract

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A written contract that constitutes the final expression of the parties agreement. If a contract is integrated, evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible.

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parol evidence rule

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A substantive rule of contracts under which a court will not receive into evidence the parties prior negotiations, prior agreements, or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties written contract

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Prenuptial agreement

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An agreement made before marriage that denies each parters ownerships rights in the other partners property. Prenuptial agreements must be in writing to be enforceable

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Statue of Frauds

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A state statute under which certain types of contracts must be in writing to be enforceable