LAW 6 & 7

Acceptance

An unqualified willingness to enter into a contract on the terms in the offer.

Consideration

The price paid for a promise.

Counteroffer

The rejection of one offer and proposal of a new one.

Gratuitous Promise

A promise for which no consideration is given.

Invitation to Treat

An expression of willingness to do business.

Lapse

The expiration of an offer after a specified or reasonable period.

Offer

A promise to enter a contract, on specified terms, as soon as it is accepted.

Offeree

The person to whom an offer is made.

Offeror

The person who makes an offer.

Option Agreement

An agreement where, in exchange for payment, an offeror is obligated to keep an offer open for a specified time.

Pre-existing Legal Duty

A legal obligation that a person already owes.

Promissory Estoppel

A doctrine whereby someone who relies on a gratuitous promise may be able to enforce it.

Rebuttable Presumption

A legal presumption in favour of one party that the other side can seek to rebut or dislodge by leading evidence to the contrary.

Rejection

The refusal to accept an offer.

Revocation

The withdrawal of an offer.

Standard Form Contract

A 'take it or leave it' contract, where the customer agrees to a standard set of terms that favours the other side.

Condition Precedent

An event or circumstance that, until it occurs, suspends the parties’ obligations to perform their contractual obligations.

Condition Subsequent

An event or circumstance that, when it occurs, brings an existing contract to an end.

Contractual Quantum Meruit

Awarding one party a reasonable sum for the goods or services provided under a contract.

Entire Contract Clause

A term in a contract in which the parties agree that their contract is complete as written.

Exemption Clause

A term of a contract that identifies events causing loss for which there is no liability.

Express Term

A provision of a contract that states a promise explicitly.

Implied Term

A provision that is not expressly included in a contract but that is necessary to give effect to the parties’ intention.

Limitation of Liability Clause

A term of a contract that limits liability for breach to something less than would otherwise be recoverable.

Liquidated Damages Clause

A term of a contract that specifies how much one party must pay to the other in the event of breach.

Parol Evidence Rule

A rule that limits the evidence a party can introduce concerning the contents of the contract.

Penalty Clause

A term that is not enforceable because it sets an exorbitant amount that one party must pay to the other in event of breach.

Rules of Construction

Guiding principles for interpreting or 'constructing' the terms of a contract.