Business Law Glossary Flashcards Preview

Commonwealth 2nd Quarter > Business Law Glossary > Flashcards

Flashcards in Business Law Glossary Deck (122):
1

Acceptance

an agreement to an offer resulting in a contract

2

Accord and satisfaction

an agreement made and executed in satisfaction of the rights one has from a previous contract

3

Agent

the party appointed by the principal to enter into a contract with a third party on behalf of the principle

4

Alien corporation

one that is incorporated in a foreign country

5

Answer

official document detailing a defendant's defense

6

Antitrust

laws which seek to promote competition among businesses

7

Apparent authority

the authority an agent is believed by third parties to have because of the behavior of the principal

8

Appeal

request to a higher court to review a lower court's decision

9

Appellate courts

courts hearing cases appealed from a lower court

10

Arraignment

charging a person with a crime and asking for that person's plea

11

Arrest

to take into police custody

12

Assignee

the party to whom the assignment is made

13

Assignment

a means whereby one party in a contract conveys rights to another person, who is not a party to the original contract

14

Assignor

the party making the assignment

15

Authority

power to act for someone else

16

Bailee

the party who acquires possession, but not the title, of personal property by one party to another, under agreement

17

Bailment

the transfer of possession, but not the title of personal property by one party to another, under agreement

18

Bailor

the party who gives up possession, but not the title, of the personal property in a bailment

19

Bear

a person in possession of an instrument

20

Bearer paper

commercial paper payable to bearer; ex. to the person having possession of such

21

Beneficiary

recipient of the proceeds of a life insurance policy: one who inherits property as specified in a will

22

Bilateral contract

a contract which consists of mutual promises to perform some future acts

23

Bill of Landing

the contract existing between the consignor and the carrier

24

Bill of Sale

a document of conveyance which provides written evidence of one's title to tangible personal property

25

Blank endorsement

having no words other than the signature of the endorser

26

Board of directors

a body of person elected by the stockholders to define and establish corporate policy

27

Booking

administrative step taken after an arrested person is brought to police station, which involves entry of the person's name, the crime for which the arrest was made, and other relevant facts on the police "blotter", and which may also include photographing, fingerprinting and the like.

28

Breach of contract

a situation in which one of the parties to a contract fails or otherwise refuses to perform the obligations established in that contract

29

Business Law

those rules of conduct prescribed by government and its agencies in regulating business transactions

30

Cashier's check

a check drawn on a bank's own funds and signed by a responsible bank offical

31

Certificate of deposit

the acknowledgment by a bank of a receipt of money with an agreement of repayment

32

Certified check

a check for which the bank assures that the drawer has sufficient funds to make payment

33

Check

an order by a depositor on the bank to pay a sum of money to a payee

34

Civil Law

the body of law concerned with private or purely personal rights

35

Close (closely held) Corporation

a designation which applies to a corporation in which outstanding share of stock and managerial control are held by a limited number of people (often members of the same family)

36

Commercial paper (negotiable instrument)

a writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit

37

Common law

customs which have become recognized by the courts as binding on the community

38

Compensatory damages

an award paid to the injured party to cover the exact amount of their loss, but no more

39

Complaint (petition)

the written request which initiates a civil law suit

40

Consideration

that which the promisor demands and receives as the price for a promise

41

Consignee

one to whom goods are shipped by common carrier

42

Consignor

one who ships goods by common carrier

43

Contract

an agreement between two or more competent persons which is enforceable by law

44

Contract to sell

a seller agrees to transfer title to goods for a consideration (price) at a future time

45

Contractual capacity

the necessity that the parties desiring to enter into contracts meet all requirements

46

Corporation

a business entity created by statutory law and owned by individuals known as stockholders

47

Counteroffer

an intended acceptance which changes or qualifies an original offer and in effect, rejects that offer and becomes a new offer

48

Creditor beneficiary

a person who is not a party to a contract to whom the promisor of the contract owes an obligation or duty

49

Crime

an offense which is injurious to society as a whole

50

Criminal law

laws dealing with crimes and the punishment of wrongdoers

51

Defendant

the person against whom legal action is brought

52

Disaffirmance

the repudiation of, or election to avoid, a voidable contract

53

Discharge

termination of a contract by performance, agreement, impossibility, acceptance of breach, or operation of law

54

Discovery

pretrial steps taken to learn the details of the case

55

Domestic corporation

operates in the state that granted the charter

56

Donee beneficiary

a third party beneficiary to whom no legal duty is owned and performance is a gift

57

Draft

a written order signed by one person requiring the person to whom addressed to pay a particular sum of money, to order or to bearer, on demand or at a certain time

58

Drawee

the person, company, or financial institution ordered to pay a draft

59

Drawer

the person who executes any draft

60

Duress

a means of removing one's free will, obtaining consent by means of a threat to do harm to the person, his family, his property, or his earning power

61

Employee

the person hired to perform work and who is obligated both as to the work to be done and as to the manner in which it is to be done.

62

Employer

the party who employs employees to do certain work

63

Executed contract

those contracts in which the terms have been fulfilled

64

Execution

the carrying out or completion of some task

65

Executory contract

those contracts in which the terms have not been completely executed or fulfilled by the parties

66

Existing goods

those goods which are, at the time of the contract, in existence and owned by the seller

67

Express authority

the authority of an agent, stated in the document or agreement creating the agency

68

Express contract

a contract in which the parties express their intentions, either orally or in writing, at the time of the agreement

69

Express warranties

the actual and definite statement of a seller, either orally or in writing at the time of the sale

70

Felony

a more serious criminal offense that is punishable by death or by imprisonment in a penitentiary for more than one year

71

Fiduciary

a relationship of trust and confidence, such as that which exists between partners in a partnership

72

Foreign corporation

designation that applies when a corporation operates in any state other than where it is chartered

73

Formal contract

those contracts which must be in special form or produced in a certain way, such as under seal

74

Fraud

the intentional or reckless false statement of a material fact, upon which the injured party relied, which induced the injured party to enter into a contract, to his or her detriment

75

Future goods

those goods which are not in existence at the time a contract is agreed to

76

General agent

one who is authorized to execute the principal's business of a particular kind, or all the principals' business at a particular place, if not all of one kind

77

General partner

those individuals actively and openly engaged in the business and help to everyone as a partner

78

Goods

movable tangible personal property

79

Holder

one in possession of commercial paper

80

Identified goods

the goods specified by the buyer and seller

81

Implied authority

an agent's authority to do things not specifically authorized in order to carry out express authority

82

Implied contract

one in which the terms of the contract are implied by acts or conduct of the parties

83

Implied warranties

warranties imposed by law, arising automatically because the sale has been made

84

Independent contractor

one who contracts to perform certain tasks for a set fee, but who is independent of the control of the contracting party as to a means by which the contract is executed, except for specifications established in the contract

85

Endorsee

a person who becomes the holder of a negotiable instrument by endorsement which names him or her as the person to whom the instrument is negotiated

86

Endorsement

the signature or statement of purpose by the owner on the back of a negotiable instrument, which indicates the future control of the instrument

87

Endorser

person who writes his or her name on back of an instrument

88

Injunction

a permanent judicial order or decree forbidding the performance of a certain act.

89

Intangible personal property

evidences of ownership of personal property, such as stock of corporations, checks, and copyrights

90

Judgement

a decision of a court of law

91

Law

those rules of conduct commanding what is right and prohibiting what is wrong

92

Limited Liability Company

newest from of business ownership recognized in the U.S. combines features of both the corporation and partnership

93

Limited Partner

partners who have their liability for the firm's debts limited to the amount of their investment

94

Liquidated damages

the amount of the damages stipulated in a contract to be paid in the event one party breaches the contract

95

Maker

the person who executes a promissory note

96

Malpractice

a breach of contract by a professional person; failure to perform a professional service with the ability and care generally exercised by others in the profession

97

Merchant

a person who deals in goods of the kind, otherwise by occupation purports to have knowledge or skill peculiar to the practices or goods involved in the transaction

98

Minor

those persons under legal age; by most states (but not all), the standard is under the age of eighteen

99

Misdemeanor

a less serious criminal offense, generally punishable by fine and/or imprisonment of less than one year

100

Misrepresentation

stating an untrue fact

101

Necessaries

items, required or proper and useful, for sustaining a human being at an appropriate living standard (examples: food, clothing, and shelter)

102

Negligence

failure to exercise ordinary care; omission to do something which a reasonable prudent person would do under ordinary circumstances or the doing of something which a reasonable and prudent would not do; the lack of due care (a breach of a legal duty to act carefully resulting in injury to another or damage to another's property)

103

Negotiable instrument (commercial paper)

a writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit

104

Negotiation

the act of transferring ownership of a negotiable instrument to another party

105

Nominal damages

a token award to symbolize vindication of the wrong done to the plaintiff, generally the award is $1.00

106

Novation

the substitution of a new party for one of the original parties to a contract, such that the prior contract terminates and a new one substitutes for it

107

Offer

a proposal to make a contract

108

Offeree

the person to whom an offer is made

109

Offeror

the party who initiates, or makes an offer

110

Order paper

commercial paper made payable tot eh order of some named party; the word order or its equivalent must be used

111

Ordinance

law enacted by a local municipality

112

Partnership

the voluntary association of two or more people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit

113

Payee

the party to whom any negotiable instrument is made payable

114

Personal property

all property which is not real property

115

Petition (complaint)

a written request initiating a civil suit

116

Plaintiff

the individual who initiates a civil action

117

Price

the consideration stipulated by contract, generally expressed in money or money's worth

118

Principal

a party who appoints a second party to serve as an agent

119

Private corporation

a corporation formed by individuals to carry out some non-governmental function

120

Process (summons)

a notice given to a defendant, attaching the complaint and stating a time frame in which an answer must be filed or an appearance made

121

Promissory estoppel

an equitable doctrine that prevents the promisor from revoking the promise when the promise justifiably acts in reliance upon the promise to his detriment

122

Promissory note

a negotiable instrument containing a promise to pay