Business Law MRTS 2335

Acceptance

an agreement to an offer resulting in a contract

Accord and Satisfaction

an agreement made and executed in satisfaction of the rights one has from a previous contract

Agent

the party appointed by the principle to enter into a contract with a third party on behalf of the principal

Alien corportation

one that is incorporated in a foreign country

Answer

offical document detailing a defendant's defense

Antitrust

laws which seek to promote competition among businesses

Apparent authority

the authority an agent is believed by third parties to have because of the behavior of the principal

Appeal

request to a higher court to review a lower court's decision

Appellate courts

courts hearing cases appealed from a lower court

Arraignment

charging a person with a crime and asking for that person's plea

Arrest

to take into police custody

Assignee

the party to whom the assignment is made

Assignment

a means whereby one party in a contract conveys rights to another person who is not a party to the original contract

Assignor

the party making the assignment

Authority

power to act for someone else

Bailee

the party who acquires possession but not the title of personal property by one party to another, under agreement

Bailment

the transfer of possession, but not the title, of personal property in a bailment

Bearer

a person in possession of an instrument

Bearer paper

commercial paper payable to bearer; i.e. to the person having possession of such

Beneficiary

recipient of the proceeds of a life insurance policy; one who inherits property as specified in a will

Bilateral contract

a contract which consists of mutual promises to perform some future acts

Bill of landing

the contract existing between the consignor and the carrier

Bill of sale

a document of conveyance which provides written evidence of one's title to tangible personal property

Blank endorsement

having no words other than the signature of the endorser

Board of directors

a body of persons elected by the stockholders to define and establish corporate policy

Booking

administrative step taken after an arrested person is brought to a police station, which involves entry of the person's name, the crime for which the arrest was made, and other relevant facts on the police "blotter," and which may also include photographing, fingerprinting and the like.

Breach of contract

a situation in which one of the parties to a contract fails or otherwise refuses to perform the obligations established in that contract

Business law

those rules of conduct prescribed by government and its agencies in regulating business transactions

Cashier's check

a check drawn by a bank on its own funds and signed by an officer of the bank

Certificate of deposit

the acknowledgement by a bank of a receipt of money with an agreement of repayment

Certified check

a check for which the bank assures that the drawer has sufficient funds to make payment

Check

an order by a depositor on the bank to pay a sum of money to a payee

Civil law

the body of law concerned with private or purely personal rights

Close (closely held) corporation

a designation which applies to a corporation in which outstanding share of stock and managerial control are held by a limited number of people (often members of the same family)

Commercial Paper (Negotiable Instrument)

a writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit

Common law

customs which have become recognized by the courts as binding on the community

Compensatory damages

an award paid to the injured party to cover the exact amount of their loss, but no more

Complaint (petition)

the written request which initiates a civil law suit

Consideration

that which the promisor demands and receives as the price for a promise

Consignee

one who ships goods by common carrier

Contract

an agreement between two or more parties

Contract to sell

a seller agrees to transfer title to goods for a consideration (price) at a future time

Contractual capacity

the necessity that the parties desiring to enter into contracts meet all requirements

Corporation

a business entity created by statutory law and owned by individuals known as stockholders

Counteroffer

an intended acceptance which changes or qualifies an original offer and in effect, rejects that offer and becomes a new offer

Creditor beneficiary

a person who is not a party to a contract to whom the promisor of a contract owes an obligation or duty

Crime

an offense which is injurious to society as a whole

Criminal law

laws dealing with crimes and the punishment of wrongdoers

Deed

writing conveying title to real property

Deed of trust

deed that transfers property to trustee for benefit of creditor

Defendant

the person against whom legal action is brought

Disaffirmance

the repudiation of, or election to avoid, a voidable contract

Discharge

termination of a contract by performance, agreement, impossibility, acceptance of breach, or operation of law

Discovery

pretrial steps taken to learn the details of the case

Domestic corporation

operates in the state that granted the charter

Donee beneficiary

a third party beneficiary to whom no legal duty is owed and for whom performance is a gift

Draft

a written order signed by one person requiring the person to whom addressed to pay a particular sum of money, to order or to bearer, on demand or at a certain time

Drawee

the person, company, or financial institution ordered to pay a draft

Drawer

the person who executes any draft

Duress

a means of removing one's free will, obtaining consent by means of a threat to do harm to the person, his family, his property, or his earning power

Employee

the person hired to perform and who is obligated both as to the work to be done and as to the manner in which it is to be done

Employer

the party who employs employees to do certain work

Executed contract

those contracts in which the terms have been fulfilled

Execution

the carrying out or completion of some task

Executory contract

those contracts in which the terms have not been completely executed or fulfilled by the parties

Existing goods

those goods which are, at the time of the contract, in existence and owned by the seller

Express authority

the authority of an agent, stated in the document or agreement creating the agency

Express contract

a contract in which the parties express their intentions, either orally or in writing, at the time of the agreement

Express warranties

the actual and definite statement of a seller, either verbally or in writing, at the time of the sale

Fee simple estate

largest, most complete right in property

Felony

a more serious crime punishable by at least one year in prison

Fiduciary

a relationship of trust and confidence, such as that which exists between partners in a partnership

Foreign corporation

designation that applies when a corporation operates in any state other than where it is chartered

Formal contract

those contracts which must be in special form or produced in a certain way, such as under seal

Fraud

the intentional or reckless false statement of a material fact, upon which the injured party relied, which induced the injured party to enter into a contract, to his or her detriment

Future goods

those goods selected which are not in existence at the time in which the contract was created

General agent

one who is authorized to execute the principal's business of a particular kind, or all the principal's business at a particular place, if not all of one kind

General partner

those individuals actively and openly engaged in the business and held to everyone as a partner

Goods

movable tangible personal property

Holder

one in possession of commercial paper

Identified goods

the goods specified by the buyer and seller

Implied contract

one in which terms of the contract are implied by acts or conduct of the parties

Implied authority

an agent's authority to do things not specifically authorized in order to carry out express authority

Implied warranties

warranties imposed by law that arise automatically because the sale has been made

Independent contractor

one who contracts to perform certain tasks for a set fee, but who is independent of the control of the contracting party as a means by which the contract is executed, except for specifications established in the contract

Endorsee

a person who becomes the holder of a negotiable instrument by endorsements which names him or her as the person to whom the instrument is negotiated

Endorsement

the signature or statement of purpose by the owner on the back of a negotiable instrument, which indicates the future control of the instrument

Endorser

person who writes his or her name on back of instrument

Injunction

a permanent judicial order or decree forbidding the performance of a certain act

Intangible personal property

evidences of ownership of personal property such as stock of corporations, checks and copyrights

Judgment

a decision in a court of law

Law

those rules of conduct commanding what is right and prohibiting what is wrong

Life estate

estate for duration of a person's life

Limited liability company

newest form of business ownership recognized in the U.S.; combines features of both the corporation and partnership

Limited partner

partners who have their liability for the firm's debts limited to the amount of their investment

Liquidated damages

the amount of the damages stipulated in a contract to be paid in the event one party breaches the contract

Maker

the person who executes a promissory note

Malpractice

a breach of contract by a professional person; failure to perform a professional service with the ability and care generally exercised by others in the profession

Merchant

a person who deals in goods of the kind, or otherwise by occupation purports to have knowledge or skill peculiar to the practices or goods involved in the transaction

Minor

those persons under legal age; by most states (but not all), the standard is under the age of eighteen.