The voluntary act of receiving something or agreeing to certain terms in various contexts such as banking, contract law, and real property law.
Accord and satisfaction is a legal concept that enables one party to a contract to fulfill their contractual duty differently than originally agreed, provided the other party consents. This concept involves two components: an accord and a satisfaction.
An 'Act of God' refers to violent and catastrophic events caused by natural forces which could not have been prevented or avoided by human foresight or prudence. In legal terms, such events can excuse the performance of a contractual duty if that performance is rendered impossible.
A legally enforceable agreement containing standardized terms, offered by a business to consumers of goods or services. The consumer must accept the standard provisions and does not have the ability to change those terms.
An amendment is an addition to or a modification of a legal document. When properly executed, it has the full legal effect of the original document.
Anticipatory breach involves breaking a contract before the actual time of required performance. It occurs when one party repudiates their contractual obligation beforehand by indicating that they will not or cannot fulfill their contractual duties.
An assignee is a person, company, or entity to whom an agreement, contract, or right is sold, given, or transferred. This legal transfer allows the assignee to step into the shoes of the assignor and assume their rights and obligations under the original contract.
An assignor is the party who assigns or transfers an agreement or contract to another entity or individual. In a legal context, this transfer of rights or interests enables the assignee to assume the assignor's privileges and obligations under the contract.
Bailment refers to the delivery of goods by the owner (known as the bailor) to a recipient (known as the bailee) under the agreement that the goods will be returned to the owner or otherwise disposed of according to the owner's directions. This arrangement can be made for various reasons such as lending, hiring, depositing for safekeeping, or pledging as collateral.
A bargain renewal option in a lease agreement gives the lessee the right to extend the lease term at a rate favorable enough that's considerably below market value.
A bilateral mistake occurs when both parties to a contract are mistaken about the same material fact. This mutual error can result in the contract being voidable, as the actual terms do not align with the parties' expectations.
A breach of contract occurs when a party fails to fulfill obligations under a legally binding agreement or indicates an intention not to do so. It can result in remedies like damages, injunctions, or specific performance.
A cancellation clause is a contract provision that grants the right to terminate obligations upon the occurrence of specified conditions or events. For example, a cancellation clause in a lease might permit the landlord to break the lease upon the sale of a building.
Caveat Emptor, a Latin term meaning 'Let the Buyer Beware,' is a doctrine of law indicating that the buyer assumes the risk in a transaction. Although traditionally buyers were solely responsible for due diligence, modern legal frameworks have incorporated requirements for sellers to disclose known defects.
A clawback is a provision in a law or contract that limits or reverses a payment or distribution for specified reasons.
A unit considered by trade or usage to be a whole that cannot be divided without materially impairing its value, character, or use. Relevant in contractual dealings when partial rejection of goods may constitute acceptance of the entire unit.
A person legally capable of entering a contract. They must be of legal age and not mentally incompetent or under the influence of intoxication.
A condition precedent is an express or implied provision of a contract that requires the occurrence of a specific event or the performance of a certain act before the contract becomes binding on the parties.
A condition subsequent is a provision in a contract that describes an event or act, upon the happening of which certain obligations under the contract terminate.
A contract whose performance is contingent upon the occurrence of a specified future event.
Consideration is a fundamental element in a contract representing the exchange of promises or monetary value essential to legal agreements.
A contract undertaken by a self-employed individual, distinguishing it from a contract of employment. Understanding the distinction is crucial for tax purposes.
A counteroffer is the rejection of an original offer to buy or sell along with a simultaneous substitute offer. They are commonly encountered in various transactions, particularly in real estate, where factors other than price might be negotiated.
Disaffirm refers to the action of repudiating or disclaiming the intention of being obligated under a contract or agreement, often seen in the context of voidable contracts.
Duress refers to a situation where one party is compelled to act contrary to their free will due to improper threats, violence, or other forms of coercion. It can serve as a defense in cases of crime, breach of contract, or tort.
A formal agreement between employer and employee, stating the terms of employment in an organization. Employers are bound by Federal Affirmation Action laws not to discriminate.
An escape clause is a provision in a contract that allows one or more of the parties to cancel all or part of the contract if certain events or situations do or do not occur.
Estoppel is a legal principle that prevents a party from arguing something contrary to a previous claim or behavior if it would lead to an unjust result. It ensures fairness and justice by enforcing consistency in parties' actions and statements.
Fully accomplished or performed actions, where nothing is left unfulfilled. This is the opposite of executory, where something remains to be completed.
An executed contract is one where all terms and conditions have been met and fulfilled by the parties involved, indicating the conclusion of the contractual obligations.
Execution refers to the formal process of signing, sealing, and delivering a contract or agreement to render it legally valid. In the context of securities, execution pertains to the act of carrying out a trade or order by a broker.
An executory contract is an agreement that has not been fully accomplished or completed, but remains contingent upon the occurrence of some future event or performance of some future act.
The term 'express' has multiple applications across different fields such as law and transportation. It typically denotes clarity, specificity, or speed.
An express contract is a legally binding agreement, the terms of which are clearly stated either orally or in writing. It is distinguished from an implied contract where the terms are inferred from conduct or circumstances.
Frustration of Contract refers to the termination of a contract due to an unforeseen event that renders its performance impossible, illegal, or radically different from what was initially agreed.
A Hold Harmless Clause is a provision in a contract where one party agrees to protect another party from claims and liabilities that may arise during the execution of the contract. Such clauses are critical for risk management in various business agreements.
An implied contract refers to an agreement that is established by the actions, behavior, or circumstances of the parties involved, without a written or spoken exchange. Unlike an explicit contract, its terms are inferred from conduct rather than articulated in words.
An Implied In Fact Contract is an agreement derived from the actions, behavior, or circumstances of the involved parties, rather than from their written or spoken words.
A legal doctrine meaning 'equally at fault', where neither party in an illegal contract or transaction is able to obtain legal relief if both parties are equally culpable. Exceptions exist if the parties are not equally at fault.
Incapacity refers to the lack of legal, physical, or intellectual power or ability to perform a task or make decisions. It is relevant in various legal contexts, such as contract law, where a person must have the capacity to enter into a binding agreement.
In the context of law, an incompetent individual is one who is not legally capable of completing a contract. This includes the mentally ill, minors, and others considered incapable. In a personal context, incompetence refers to an individual who is poorly suited to perform the required work.
A contract in which the obligation of one or more parties, such as an obligation to pay money, deliver goods, or render services, is divided into a series of successive performances.
A legal entity refers to a person or organization that has the legal standing to enter into a contract and may be sued for failing to perform as agreed in the contract. A child under legal age is not a legal entity. A corporation is considered a legal entity since it is deemed a person in the eyes of the law.
Liquidated damages are a pre-determined amount agreed upon by the contracting parties as a reasonable estimation of damages owed in the event of a breach of contract.
Mutual assent to terms by parties to a contract. A traditional rule of contract law is that the agreement, to be legally enforceable, must be accurately expressed within the terms of the contract the parties create, for therein lies the required meeting of the minds.
In law, a mistake refers to an act or omission arising from ignorance or misconception which may justify rescission of a contract or exoneration of a defendant from tort or criminal liability depending on its nature or the surrounding circumstances.
Mutuality of Contract refers to the reciprocal understanding or agreement between parties that is necessary for the formation of a legally enforceable contract.
Nonfeasance refers to the failure to perform a duty or responsibility to which one is legally bound, such as an unfulfilled contractual duty.
Nonperformance refers to the failure to do something that one was legally bound to do. The nonperforming party is liable for damages or actions requiring specific performance.
A Notice of Default is a formal letter sent to a party in default to remind them of their breach of contract, potentially including a grace period to rectify the default and outlining any penalties for failing to cure the default.
Novation refers to the cancellation of rights and obligations under one legal agreement and their replacement with new ones under another agreement. This process typically results in a change in the identity of one of the parties involved, such as in loan agreements.
An obligee is a person or entity in whose favor a contractual, legal, or fiscal obligation is established. This party is entitled to receive specific performance or payment as per the conditions outlined in the obligation.
Learn about 'Offer and Acceptance', crucial concepts in contract law that form the basis of legally binding agreements.
An offeree is a person or party that receives an offer from another individual or entity. The offeree has the authority to accept, reject or counter the offer.
An offerer is the party who presents an offer in a contractual agreement and has the ability to rescind the offer any time before it is accepted.
The Offeror is a party who makes an offer to enter into a contractual agreement with another party (the offeree) in some legal contexts. It is an essential aspect of contract law, advertising, and various business transactions.
An oral contract refers to an agreement between parties that is either not written down or not signed by the parties involved.
The term 'override' carries distinct meanings across various fields, such as business, petroleum industry, contractual agreements, and government legislation. Understanding these variations can help in accurately interpreting the term based on the context.
In legal terms, a 'party' refers to an individual or entity that is involved in a legal contract, lawsuit, or other legal proceedings.
Performance can refer to the fulfillment of an obligation or promise within a contractual context in law, as well as the high-level capability or efficiency of a product in marketing.
Private Law governs the relationships between private individuals, companies, or organizations. Unlike Public Law, it does not involve government intervention and encompasses various legal disciplines including contract, tort, property, and family law.
Privity refers to the direct relationship between parties that is necessary for legal liability or mutual interest to exist. It's a fundamental concept in different domains of law, especially contract and property law.
Quid Pro Quo, translating to 'something for something', is often used in legal and business contexts to refer to an exchange where one thing is given in return for another. It implies a mutual agreement or consideration where both parties receive something of value.
Ratification refers to the official approval or confirmation by a person or entity of a previous contract or act, which would not be legally binding without such approval. It often occurs in situations where the initial agreement was not properly authorized or where further consent is essential for the agreement's enforceability.
The term 'reasonable time' refers to a subjective standard based on the facts and circumstances within a particular case, with applicability in a variety of legal contexts, especially in commercial law.
Reformation is an equitable remedy consisting of a court-ordered revision of a contract to accurately reflect the true intentions of the parties involved, primarily used when the written terms do not match what was actually agreed upon.
Renegotiation is the process of legally revising the terms of a contract to better suit the needs of the involved parties due to changing circumstances or the realization that original terms are no longer applicable or fair.
Repossession is the act by which a seller reclaims property from a buyer upon failure to fulfill payment obligations as stipulated in a contract.
Repudiation refers to the refusal by one party to fulfill their contractual obligations, signaling an intention to withdraw from the contract.
Rescission refers to the cancellation of a contract and the return of the parties to their pre-contractual positions. It may occur due to various reasons including fraud, failure of consideration, or a material breach.
A restrictive covenant is a clause, which can either restrict the freedom of an individual or entity in a business agreement or affect the usage of land, thereby setting specific limitations and obligations.
A contractual opportunity granted to a specific party to match the terms of a proposed contract before it is executed with another party.
In common law, a seal is an impression on wax or another substance capable of being impressed, used to attest to the execution of an instrument. The term 'seal' and the letters 'L.S.' (locus sigilli, 'place of the seal') are commonly used for the same purpose today.
A service contract is a legally binding agreement between an employer and a director or other very senior employee, outlining terms of employment, responsibilities, and protections for both parties.
Several liability is a legal concept in which multiple parties can be held independently responsible for their own specified obligations or debts in a contractual agreement.
Specific performance is a legal remedy in contract law, requiring the breaching party to fulfill their obligations under the contract, typically enforced when the subject matter is unique.
A stipulation refers to a specific term or condition within a written contract, or any set of agreed-upon terms and conditions that establish duties, rights, and responsibilities of the parties involved.
Substitution refers to the act of replacing one element with another in various contexts including banking, contract law, economics, law, and securities.
A surety bond is a legally binding contract involving three parties: the principal, the surety, and the obligee, where the surety agrees to fulfill the obligation if the principal defaults.
A lease agreement where the duration is fixed and agreed upon by both parties, running for a specific term such as two months, three years, ten years, and so on.
Tender of Delivery refers to the seller's placement of goods at the buyer's disposal in accordance with the terms of the contract. Failure to tender delivery or refusal to take delivery may constitute a breach of contract.
A phrase in a contract signaling that all time-based obligations must be performed punctually and within the specified dates and times.
A title retention clause, commonly known as a Romalpa clause, is a contractual clause ensuring that the seller retains ownership of the goods supplied until the buyer has paid the full purchase price.
A unilateral contract is an agreement whereby one party makes a promise to do, or refrain from doing, something in return for an actual performance by the other party, rather than a mere promise of performance.
A term used to indicate that an agreement or a legal document is legally binding, sufficient, and authorized by law.
Valuable consideration refers to any promised payment or benefit that can be legally enforced by a promisee against an unwilling promisor, typically involving money, extension of time, or other economic equivalents.
Intentional and voluntary surrender of some known right, which generally may either result from an express agreement or be inferred from circumstances.
