Business Law

Front 1

promise

Back 1

an assertion that something either will or will not happen in the future

Front 2

promisor

Back 2

a person who makes a promise

Front 3

promisee

Back 3

a person to whom a promise is made

Front 4

contract

Back 4

an agreement that can be enforced in court; formed by two or more competent parties who agree, for consideration, to perform or to refrain from performing some legal act now or in the future

Front 5

offeror

Back 5

a person who makes an offer

Front 6

offeree

Back 6

a person to whom an offer is made

Front 7

bilateral contract

Back 7

a type of contract that arises when a promise is give in exchange for a return promise

Front 8

unilateral contract

Back 8

a contract that results when an offer can be accepted only by the offeree's performance

Front 9

formal contract

Back 9

a contract that by law requires a specific form, such as being executed under seal, for its validity

Front 10

informal contract

Back 10

a contract that does not require a specified form or formality to be valid

Front 11

express contract

Back 11

a contract in which the terms of the agreement are stated in words, oral or written

Front 12

implied-in-fact contract

Back 12

a contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).

Front 13

executed contract

Back 13

a contract that has been completely performed by both parties

Front 14

executory contract

Back 14

a contract that has not as yet been fully performed

Front 15

valid contract

Back 15

a contract that results when the elements necessary for contract formation (agreement, consideration, legal purpose, and contractual capacity) are present

Front 16

voidable contract

Back 16

a contract that may be legally avoided (canceled, or annulled) at the option of one or both of the parties

Front 17

unenforceable contract

Back 17

a valid contract rendered unenforceable by some statute or law

Front 18

void contract

Back 18

a contract having no leagal force or binding effect

Front 19

quasi contract

Back 19

a fictional contract imposed on parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another

Front 20

agreement

Back 20

a meeting of two or more minds in regard to the terms of a contract; usually broken down into two events-an offer by one party to form a contract, and an acceptance of the offer by the person to whom the offer is made

Front 21

offer

Back 21

a promise or commitment to perform or refrain from performing some specified act in the future

Front 22

revocation

Back 22

in contract law, the withdrawal of an offer by an offeror. Unless the offer is irrevocable, it can be revoked at any time prior to acceptance without liability

Front 23

option contract

Back 23

a contract under which the offeror cannot revoke his or her offer for a stipulated time period, and the offeree can accept or reject the offer during this period without fear that the offer will be made to another person. The offeree must give consideration for the option (the irrevocable offer) to be enforceable

Front 24

counteroffer

Back 24

an offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer

Front 25

mirror image rule

Back 25

a common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed

Front 26

acceptance

Back 26

a voluntary act by the offeree that shows assent, or agreement, to the terms of an offer; may consist of words or conduct

Front 27

mailbox rule

Back 27

a rule providing that an acceptance of an offer becomes effective on dispatch (on being placed in an official mailbox), ify mail is, expressly or impliedly, an authorized means of communication of acceptance to the offeror

Front 28

consideration

Back 28

generally, the value given in return for a promise. The consideration must result in a detriment to the promisee (something of legally sufficient value and bargained for) or a benefit to the promisor

Front 29

forbearance

Back 29

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

Front 30

rescission

Back 30

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 the parties' conduct, or by court decree

Front 31

past consideration

Back 31

an act that takes place before the contract is made and that ordinarily, by itself, cannot be consideration for a later promise to pay for the act

Front 32

accord and satisfaction

Back 32

a common means of settling a disputed claim, in which a debtor offer to pay a lesser amount than the creditor purports to be owed. The creditor's acceptance of the offer creates an accord (agreement), and when the accord is executed, satisfaction occurs

Front 33

release

Back 33

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

Front 34

covenant not to sue

Back 34

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

Front 35

promissory estoppel

Back 35

a doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies; such a promise is binding if justice will be better served by the enforcement of the promise

Front 36

estopped

Back 36

barred, impeded, or precluded