Contract law - Business & Legal English-Karteikarten

offer

A promise or commitment to perform or refrain from performing some specified act in the future.

e.g. The dispute was assessed under ______ rather than national law because it involved companies operating across different jurisdictions.

acceptance

the action of consenting to receive or undertake something offered

e.g. The parties reached ______ when the buyer confirmed agreement to all terms in writing.

consideration

something of value exchanged for something else of value

e.g. The court ruled that there was sufficient ______ because both sides exchanged something of value.

essential terms

necessary elements in a contract, e.g. parties, subject, price

e.g. The contract could not be enforced because several ______ ______ were missing or unclear.

Force Majeure Clause

A provision in a contract stipulating that certain unforeseen events—such as war, political upheavals, or acts of God—will excuse a party from liability for nonperformance of contractual obligations.

e.g. Performance was suspended due to a ______ ______ ______ triggered by an unexpected natural disaster.

severability clause

A contract clause stating that any portion of a contract declared invalid by state or federal law shall be declared null and void while still holding the remainder of the contract valid.

e.g. A ______ ______ ensured that invalid provisions would not affect the rest of the agreement.

breach of contract

the nonperformance of a contractual duty.

e.g. The supplier's failure to deliver on time constituted a clear ______ ______ ______.

counter offer

voids first offer and creates new offer

e.g. Instead of accepting the proposal, the buyer submitted a ______ ______ with revised payment terms.

oral contract

An agreement that is not in writing or signed by the parties.

e.g. The agreement was upheld even though it was only an ______ ______ made verbally between the parties.

contract formation

the process of creating a contract, e.g. offer, acceptance, consideration

e.g. Proper ______ ______ requires agreement between parties and intention to create legal relations.

damages

A sum of money paid in compensation for loss or injury in a civil case

e.g. The company claimed ______ after suffering financial loss caused by the breach

specific performance remedy

ordering a party to perform an agreement as promised

e.g. The court ordered ______ ______ ______ requiring the seller to complete the sale of the property.

injunction

An order which legally prevents something

e.g. The judge granted an ______ preventing the former employee from using confidential data.

contract obligations

something a party to a contract has to do

e.g. Both parties failed to meet their ______ ________ under the agreement, leading to termination.

acceleration clause

States that upon default, all of the principal installments come due immediately.

e.g. The loan included an ______ ________ allowing the lender to demand immediate repayment after default.

entire agreement clause

states either party cannot argue that there were additional or alternate terms to the contract based on a previous agreement.

e.g. The ______ ______ ______ confirmed that no previous negotiations formed part of the final agreement. (

confidentiality clause

the portion of the settlement agreement that keeps the terms secret

e.g. A ______ _________ prevented employees from sharing sensitive company information.

remedies

A court will award money or other relief to a party injured by a breach of contract.

e.g. The contract outlined available ______ in case one party failed to perform.

duress

compulsion, force

e.g. The agreement was declared void due to ______ during the signing process.

illegality of the subject matter

when either the subject matter (e.g. the sale of illegal drugs) or the consideration of a contract is illegal.

assignor

the party making the assignment

e.g. The rights were transferred from the ______ to another party.

assignee

the party to whom the assignment is made

e.g. The ______ received all rights and benefits under the agreement.

legal capacity

Requirement that a party to a contract be of legal age and have requisite mental capacity to enter into contract

contractual relations

enter a contract together

e.g. The companies entered into ______ _______after signing the commercial agreement.

to settle

a dispute - the resolve an issue

e.g. The parties agreed to ______ the dispute through arbitration instead of court proceedings.

exclusion clause

a contractual term that seeks to protect one party from various sorts of legal liability

e.g. The ______ _________ limited liability for indirect losses such as loss of profit.

conditions of the contract

terms of a contract which are essential and which can lead to termination and damages in case of breach

e.g. Payment was only due once all ______ ______ ______ ______ had been satisfied by both parties.

warranties

terms of a contract which are not essential and which can lead to damages but not necessarily to termination in case of a breach

e.g. The seller provided ______ regarding the quality and condition of the goods sold.

legally binding

legally obligated; can be enforced in a court of law

e.g. Once signed by both parties, the agreement became ______ ________ and enforceable in court.