People in Business & Contract Law

These flashcards cover key concepts and definitions related to business stakeholders and contract law.

Entrepreneur

A person who spots an opportunity and takes the initiative to set up a business to make money from that opportunity.

Stakeholder

Someone who is affected by how a business is run.

Investor

A person who provides capital to the entrepreneur in exchange for a return on investment.

Employer

A person who hires others to work for her and provides rewards for their work.

Employee

A person who works for an employer in return for a wage.

Manager

A person whose job is to run the business and ensure it achieves its objectives.

Producer

A business that makes finished products from raw materials to sell to consumers.

Consumer

A person who buys goods or services from an entrepreneur for personal use.

Supplier

The firms from which a business buys the goods and services it needs.

Service provider

A business that offers helpful supports to entrepreneurs for a fee.

Interest group

An organization of people campaigning for a common goal by applying pressure on decision-makers.

Cooperative relationship

When parties work together and support each other to achieve their goals.

Competitive relationship

When one party wants to be more successful than another, leading to rivalry.

Contract

A legally binding agreement between two or more parties in which each promises something to the other.

Offer

When one person asks another to enter into a deal and promises to be bound by the contract if accepted.

Acceptance

Agreement to all terms of the offer made in a contract.

Consideration

The exchange of value between parties in a contract.

Intention to contract

The understanding that the agreement is legally binding.

Capacity to contract

The legal right to make a contract, excluding certain individuals.

Consent to contract

Real and genuine permission from both parties to enter into the contract.

Legality of form

Certain agreements must be drawn up in a specific way to be legal.

Legality of purpose

Contracts can only be for legal transactions.

Termination of a contract

The end of a contract due to various factors such as performance, agreement, or breach.

Frustration

Ending a contract due to unforeseen events making it impossible to carry out.

Break of contract

Termination of a contract when one party fails to fulfill their obligations.