commercial law Flashcards

(46 cards)

1
Q

Perfection

A

The moment in time when a creditor’s

security interest becomes protected.

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2
Q

Acceptance

A

A contract does not come into existence until an offer has been made by one party (the offeror) and accepted by another party (the offeree).

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3
Q

Nullity

A

Something which may be treated as nothing, as if it did not exist or never
happened

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4
Q

Consensus/Ad Item

A

This occurs when all parties have reached

an agreement or meeting of the minds

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5
Q

Deed

A

A document under seal

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6
Q

Inquiry

A

A response by the offeree that does not unconditionally accept the terms of the offer but proposes to modify or vary the terms of the offer

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7
Q

Repossession

A

The act of taking back possession of property that has been in the
possession of another

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8
Q

Revoke

A

It can be done anytime before the acceptance of an offer, generally this must be done directly to the offeree

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9
Q

Consideration

A

This is the price, which must be something of value, paid in return for a promise

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10
Q

Attachment

A

The moment in time when a debtor’s property becomes subject to a security
interest

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11
Q

Quantum MerUit

A

This is a legal doctrine that states no one should unjustly benefit from the labour of another

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12
Q

Minor

A

A person who has not attained the age of majority according to the law of his/her province

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13
Q

Due Diligence

A

The steps taken by a lawyer/assistant to learn as much as possible about a business BEFORE a client purchases/ lends money

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14
Q

Collateral

A

Property pledged to secure a loan or debt, usually funds

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15
Q

Void Contract

A

An unenforceable/defective agreement

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16
Q

Assignment of Book Debts

A

– Contract where borrower gives lender security over accounts owing in exchange for a loan. Both current and fixture obligations

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17
Q

Guardian

A

A person legally appointed to care/watch over a minor

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18
Q

Financing Change Statement

A

Document used to make changes to a registration as PPR. Changes to the Financing Statement.

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19
Q

Collateral

A

Is the personal property to which the debtor give a security interest.

20
Q

Verification Statement

A

Is the Statement verifying your registration once registered at Personal Property

21
Q

Counter Offer

A

Is a response made by the offeree that does not unconditionally accept the terms of the offer but proposes to modify or vary the terms of the offer.

22
Q

Lapse

A

Termination of an Offer. Expiry of an offer.

23
Q

Pledge

A

When a creditor only gains the right to sell the item if the borrower does not repay the loan

24
Q

Operating Lease

A

Goods are simply rented to the lessee during the lease period

25
Lease to Purchase
Title to the goods will be transferred to the lessee at the end of the lease period
26
Indemnity
a subordinate agreement to the primary contract, by which one party to the contract promised to protect the other party to the contract against injury or loss resulting from actions carried out to fulfill the primary contract
27
Formal Contract
A contract that is sealed by the party to be bound
28
Simple Contract
may be verbal or written, but are not under seal | May also be called parol contracts.
29
Express Contract
Parties have expressly stated their agreement, either verbally or in writing
30
Implied Contracts
A contract that is inferred from the conduct of the parties
31
Valid Contract
Is a contract that is legally binding on both parties
32
Void Contract -
Does not qualify as a legally binding contact because an essential element is missing.
33
Voidable Contract
Is valid, but one party has the option to end the contract.
34
Unenforceable Contract
Required to be in writing and is not. It may be valid in all other respects, but the courts will not force a party to perform such a contract
35
Illegal Contract
Involves the performance of an unlawful act. | The parties to such an agreement cannot be required to perform it.
36
Bilateral Contract
- A contract in which both parties make commitments and assume obligations.
37
Unilateral Contract
There is no exchange of promises. | Contract only comes into effect when one party actually performs what has been requested by the other.
38
Breach of Contract
Failure to perform an obligation owed to another under a contract
39
Breach of Condition
Failure to perform an essential term of a contract, entitling the injured party to treat the contract as ended
40
Breach of Warranty
Failure to perform a term of a contract, entitling the injured party to damages
41
Mitigation of Loss
The expectation that a person injured by a breach of contract will take reasonable steps to reduce any losses that the breach caused.
42
Liquidated Damages
A sum of money stipulated in a contract to settle a potential breach
43
Specific Performance
A court order that requires a person to fulfill the terms of a contract
44
Privity of Contract
A contractual relationship between two parties
45
Rescission
The cancellation of a contract
46
Trust Indenture
A document containing the terms and conditions governing a trustee’s conduct and the trust beneficiaries’ rights