contractual obligations vocab

warranty

warranty

a legally binding commitment forming part of the sales contract which assures the buyer that the product/service is free from defects

conditions

a term of the contract that is so significant that it goes to the heart of the transaction; a major term of the agreement

terms

any provisions or terms that form part of a contract

clause

a written portion that exists to do a legal-specific job; addresses a specific need, right, deadline, or duty

exemption clause

clause that limits or removes a party’s liability upon something gone wrong, or ensures responsibility

valid

valid contracts must include:

• an offer

• proper consideration

• be for legal purposes

• have capacity of the parties

• mutual agreement → enforceable obligations

illegal

contracts prevent

repudiation

when one party demonstrates that it is unwilling/unable to fulfil its obligation; refuses to honor

necessaries

goods or services suitable to the condition in life and actual requirements of a minor/’incapacity’ people

caveat emptor

a fundamental principle in commerce and contractual relationships between a buyer and a seller. a buyer is responsible to ensure that a good is not defective before purchasing - ‘let the buyer beware’

ratio decidendi

the reason for a courts decision and is part of the judgement delivered at the end of a case

obiter dicta

a judges expression of opinion said in court or written judgement, but not essential to the decision and therefore not legally binding as a precedent