Chapter 6 Business Law

Front 1

alienation

Back 1

The process of transferring land out of one’s possession (thus “alienating” the land from oneself).

Front 2

anticipatory repudiation

Back 2

An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.

Front 3

assignee

Back 3

A party to whom the rights under a contract are transferred, or assigned.

Front 4

assignment

Back 4

The act of transferring to another all or part of one’s rights arising under a contract.

Front 5

assignor

Back 5

A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).

Front 6

breach of contract

Back 6

The failure, without legal excuse, of a promisor to perform the obligations of a contract.

Front 7

commercial impracticability

Back 7

A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs, (2) the contingency’s occurrence makes performance impracticable, and (3) the nonoccurrence of the contingency was a basic assumption on which the contract was made.

Front 8

concurrent conditions

Back 8

Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.

Front 9

condition

Back 9

A qualification, provision, or clause in a contractual agreement, the occurrence or nonoccurrence of which creates, suspends, or terminates the obligations of the contracting parties.

Front 10

condition precedent

Back 10

In a contractual agreement, a condition that must be met before a party’s promise becomes absolute.

Front 11

condition subsequent

Back 11

A condition in a contract that, if not fulfilled, operates to terminate a party’s absolute promise to perform.

Front 12

delegatee

Back 12

A party to whom contractual obligations are transferred, or delegated.

Front 13

delegation of duties

Back 13

The act of transferring to another all or part of one’s duties arising under a contract.

Front 14

delegator

Back 14

A party who transfers (delegates) her or his obligations under a contract to another party (called the delegatee).

Front 15

discharge

Back 15

The termination of an obligation. In contract law, discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings, discharge is the extinction of the debtor’s dischargeable debts, thereby relieving the debtor of the obligation to pay the debts.

Front 16

frustration of purpose

Back 16

A court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party’s control).

Front 17

impossibility of performance

Back 17

A doctrine under which a party to a contract is relieved of her or his duty to perform when performance becomes objectively impossible or totally impracticable (through no fault of either party).

Front 18

incidental beneficiary

Back 18

A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced

Front 19

intended beneficiary

Back 19

A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.

Front 20

novation

Back 20

The substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated. Typically, novation involves the substitution of a new person who is responsible for the contract and the removal of the original partyrights and duties under the contract. responsible for the contract and the removal of the original partyrights and duties under the contract.

Front 21

obligee

Back 21

One to whom an obligation is owed.

Front 22

obligor

Back 22

One who owes an obligation to another.

Front 23

performance

Back 23

In contract law, the fulfillment of one’s duties arising under a contract with another; the normal way of discharging one’s contractual obligations.

Front 24

privity of contract

Back 24

The relationship that exists between the promisor and the promisee of a contract.

Front 25

tender

Back 25

An unconditional offer to perform an obligation by a person who is ready, willing, and able to do so.

Front 26

third party beneficiary

Back 26

One for whose benefit a promise is made in a contract but who is not a party to the contract.