Review for Exam Three- Chapter 14

terms

contractual capacity

the legal ability to enter into a contractual relationship

covenant not to compete

a contractual promise to refrain from competing with another party for a certain period of time and within a certain geographic area. 

disaffirmance

the legal avoidance, or setting aside, of a contractual obligation 

exculpatory clauses

release a party from liability in the event of a monetary or physical injury (no matter who is at fault)

ratification

the act of accepting and giving legal force to an obligation that was previously not enforceable. 

reformation

a court ordered correction of a written contract so that it reflects the true intensions of the parties. 

unconscionable

contract of clause so grossly unfair to be void on the basis of public policy (one pty is forced to accept terms that unfairly benefit the dominating party)