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17 Cards in this Set
- Front
- Back
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contractual capacity
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the threshold mental capacity required by law for a party who enters into a contract to be bound by that contract
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disaffirmance
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the legal avoidance, or setting aside, of a contractual obligation
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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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usury
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charging an illegal rate of interest
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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 Sunday
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employment contract
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a contract between an employer and an employee in which the terms and conditions of employment are stated
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covenant not to compete
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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 geographic area. Courts commonly enforce such covenants if they are reasonable in terms of time and geographic area and part of, or supplemental to, an employment contract or a contract for the sale of a business
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reformation
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a court-ordered correction of a written contract so that it reflects the true intentions of the parties
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unconscionable contract
(or unconscionable clause) |
a contract or clause that is void on the basis of public policy because one party, as a result of disproportionate bargaining power, is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party
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adhesion contract
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a "standard-form" contract, such as that between a large retailer and a consumer, in which the stronger party dictates the terms
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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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blue sky laws
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state laws that regulate the offer and sale of securities
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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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statute of frauds
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a state statue under which certain types of contracts must be in writing to be enforceable
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collateral promise
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a secondary promise that is ancillary (subsidiary) to a principle 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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prenuptial agreement
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an agreement made before marraige that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable
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