Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
30 Cards in this Set
- Front
- Back
|
Valid Contract Requirements
|
1. Legal Capacity
2. Mutual Agreement 3. Consideration 4. Lawful Purpose 5. Written Agreements |
|
|
Corporation
|
A fictitious legal entity/person which has rights and duties independent of the rights and duties of real persons and which is legally authorized to act in its own name through duly appointed agents. It is owned by shareholders. Usually created under the authority of state law.
|
|
|
Partnership
|
An association of two or more people who agree to share in the profits and losses of a business venture. The members of a partnership are called partners.
|
|
|
Limited Liability Company
|
A business structure that is a hybrid of a partnership and a corporation. Its owners are shielded from personal liability and all profits and losses pass directly to the owners without taxation of the entity itself.
|
|
|
Lease
|
An instrument conveying the possession of real property for a fixed period of time in consideration of the payment of rent.
|
|
|
eminent domain
|
The right of a government to appropriate private property for public use, usually with compensation to the owner.
|
|
|
Single Net Lease (N)
|
tenant pays monthly base rent + property taxes landlord = all other premises operating expenses.
|
|
|
Double Net Lease (NN)
|
tenant pays monthly base rent + property taxes and insurance. Landlord = all other premises operating expenses.
|
|
|
Triple Net Lease (NNN)
|
tenant pays monthly base rent + property taxes and insurance + maintenance.
|
|
|
Absolute Triple Net Lease (Bond Lease)
|
NNN + tenant has no legal defense
|
|
|
full service gross lease
|
Landlord pays taxes, maintenance, insurance and utilities. tenant is typically responsible for own property insurance and taxes and excess utility consumption beyond building standards.Tenant may be responsible for their proportionate share of any increase in base operating expenses over a base year or expense stop.
|
|
|
proportionate share
|
tenant pays operating expenses calculated on a square footage basis.
Tenant’s Sq. Ft. divided by Total Building Sq. Ft. = Tenant’s proportionate share |
|
|
Base year
|
typically utilized in multi-tenant industrial building leases to determine “base” cost for operating expenses cost of the space. The base operating expense account is the floor over which any increases in operating expenses will be passed on to the tenants of the building. In general, a base year is calculated on a calendar year basis or the first 12 months of Tenant’s occupancy.
|
|
|
Uniform Commercial Code (UCC)
|
provisions relating to specific areas of commercial law. consists of nine articles:
1. General Provisions (definitions) 2. sale of goods 3. Commercial Paper (promissory notes, checks) 4. Banks (handling financial documents) 5. Credit 6. Bulk Transfers 7. Notification to Creditors 8. Issue & Transfer of Investments (socks, bonds) 9.Secured Transactions at least partially, by all the states to further uniformity and fair dealing in business and commercial transactions. |
|
|
amortization
|
deduction of capital expenses over a specific period (usually over the asset's life). a method measuring the consumption of the value of intangible assets.
|
|
|
instrument, contracts
|
writing containing some agreement, prepared as a memorial of what has taken place or been agreed upon. The agreement and the instrument in which it is contained are very different things, the latter being only evidence of the existence of the former. The instrument or form of the contract may be valid, but the contract itself may be void on account of fraud. Vide Ayl. Parerg. 305; Dunl. Ad. Pr. 220.
|
|
|
nonfreehold estates
|
property interests of limited duration.
tenancy for years property is leased or rented for a definite duration, must have definite beginning and ending. tenancy at will: indefinite duration. lease period is for a definite term renewed automatically if neither party signifies intention to terminate tenancy. created either by agreement or failure to effectively create a tenancy for years. not assignable. lowest type of chattel interest in land. tenancy at sufferance: legal entry but essentially trespassing retains possession of the premises without consent. regarded as wrongful possession. If landlord consents, a tenant at sufferance may be transformed into a tenant from period to period, once the landlord accepts rent. This type of estate arises in a landlord and tenant relationship. In such a relationship, a landlord leases land or premises to a tenant for a specific period, subject to various conditions, ordinarily in exchange for the payment of rent. Nonfreehold estates are not inheritable under the common law but are frequently assignable. |
|
|
bilateral contract
|
An agreement formed by an exchange of a promise in which the promise of one party is consideration supporting the promise of the other party.
|
|
|
unilateral contract
|
A contract in which only one party makes an express promise, or undertakes a performance without first securing a reciprocal agreement from the other party.
|
|
|
privity of contract
|
relation which subsists between two contracting parties. tenant has privity of lease & estate, assignment destroys privity of estate but not lease.
|
|
|
consideration
|
Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.
|
|
|
indemnity
|
Recompense for loss, damage, or injuries; restitution or reimbursement.
|
|
|
recompense
|
reward for services; remuneration for goods or other property.
|
|
|
remuneration
|
Reward; recompense; salary.
|
|
|
annuity
|
A right to receive periodic payments, usually fixed in size, for life or a term of years that is created by a contract or other legal document.
|
|
|
time value of money
|
premise based on investor preference to receive payment today, rather than an equal amount in the future.
Present Value (PV) of an amount that will be received in the future. |
|
|
present value (PV) formula
|
core formula for the time value of money;
PV is the value at time=0 FV is the value at time=n i = compounded rate of an amount each period n = number of periods |
|
|
future value (FV)
|
an amount invested (such as in a deposit account) now at a given rate of interest.
|
|
|
substantial performance
|
an alternative principle to the perfect tender rule. This principle is relevant when a contractor's performance is in some way deficient, through no willful act by the contractor, yet is so nearly equivalent that it would be unreasonable for the owner to deny the agreed upon payment. If a contractor successfully demonstrates substantial performance, the owner remains obligated to fulfill payment, less any damages suffered as a result of the deficiencies in workmanship by the contractor.
|
|
|
perfect tender rule
|
refers to common law legal right for a buyer of goods to insist upon "perfect tender" by the seller. if the goods fail to conform exactly to the description in the contract (quality, quantity or manner of delivery) the buyer may reject the goods and rescind contract. (UCC 2-601.)
|
