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 guarantee that ensures any advance payments made by a customer will be reimbursed if the company cannot fulfill its contractual obligations.
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.
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.
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.
The act of affixing one's signature on a contract, such as a loan, in addition to the principal signature of another. Both signers are liable for the loan or other contract.
The losses or additional charges imposed on an individual or entity for failing to meet specific obligations or conditions in a financial or contractual agreement.
A guarantee is a formal promise made by a third party, known as a guarantor, ensuring the fulfillment of contractual obligations if the primary party defaults. This mechanism is often used in financial transactions to mitigate risk.
A performance bond is a type of contract surety bond that guarantees the performance of contractual obligations by a contractor or service provider. It assures the client that the project or service will be completed as per the agreed-upon standards and terms.
