Chapter 10 & 11 Terms Flashcards
Adhesion contracts
A standard-form contract in which the stronger party dictates the terms
Accord and satisfaction
A common means of settling a disputed claim, whereby a debtor offers to pay a lesser amount than the creditor purports to be owed.
Consideration
The value given in return for a promise or performance in a contractual agreement
Contractual capacity
The capacity required by the law for a party who enters into a contract to be bound by that contract
Covenant not to compete
A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specific geographical area
Covenant not to sue
An agreement to substitute a contractual obligation for some other legal type of action based on a valid claim
Disaffirmance
The legal avoidance or setting aside, of a contractual obligation
Emancipation
In regard to minor, the act of being freed from parental control
Exculpatory Clause
A clause that releases a contractual party from liability in the event of monetary or physical injury, no matter who is at fault
Forbearance
The act of refraining from an action that one has a legal right to undertake. In mortgages, an agreement between lender and the borrower in which the lender agrees to temporarily cease requiring mortgage payments, to delay foreclosure, or to accept smaller payments than previously scheduled
Liquidated debt
A debt whose amount has been ascertained, fixed, agreed on, settled or exactly determined
Necessaries
Necessities required for life such as food, shelter clothing, and medical attention
Past consideration
An act that takes place before the contract is made and that ordinarily, by itself, cannot be consideration for a later promise to pay for the act
Promissory Estoppel
A doctrine that can be used to enforce a promise when the promisee has justifiably relied on it and when justice will be better served by enforcing the promise
Ratification
A party’s act of accepting or giving legal force to a contract or other obligation entered into by another that previously was not enforceable
Reformation
A court-ordered correction of a written contract so that it reflects the true intentions of the parties
Release
An agreement in which one party gives up the right to pursue a legal claim against another party
Rescission
A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made
Unconscionable contract or clause
A contract or clause that is void on the basis of public policy because one party was forces to accept terms that are unfairly burdensome and that unfairly benefit the stronger party
Usury
Changing an illegal rate of interest
