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Business Law Ch 8
Business Law with UCC Applications Ch 8
| Question | Answer |
|---|---|
| Acceptance | A promise or act on the part of an offeree indicating a willingness to be bound by the terms and conditions contained in an offer. Also, the acknowledgment of the drawee that binds the drawee to the terms of a draft. |
| Auction | A sale that is open to the public, during which potential buyers compete for the right to purchase certain items by placing higher and higher bids until the highest bid is reached and the auctioneer accepts on behalf of the seller. |
| Auction with Reserve | An auction at which the auctioneer has the right to withdraw goods and not sell them if acceptable bids are not made. |
| Auction without Reserve | An auction at which the auctioneer cannot withdraw goods unless no bid is made within a reasonable time. |
| Bait-and-Switch Confidence Game | An illegal promotional practice in which a seller attracts consumers by promoting a product (bait) that he or she does not intend to sell and then directs the consumers' attention to a higher-priced product (switch). |
| Click-On Acceptance | A method of acceptance used in Internet contracts in which a party manifests acceptance by clicking on an icon on the computer screen that states that he or she agrees to the terms of the contract. |
| Cost-Plus Contract | A contract in which the price is determined by the cost of labor and materials plus an agreed percentage markup. |
| Current Market Price Contract | An agreement in which the prices are determined with reference to the market price on the goods on a specified date. |
| Counteroffer | A response to an offer in which the terms and conditions of the original offer are changed. |
| E-Contracts | Contracts that are made using computers either via email or the Internet or contracts that involve computer-related products such as databases and software. |
| Electronic Contracts | Contracts made using computers, either via email or the Internet or contracts that involve computer-related products such as databases and software. |
| Firm Offer | A rule that no consideration is necessary when a merchant agrees in writing to hold an offer open for the sale of goods. |
| Invitation to Trade | An announcement published for the purpose of creating interest and attracting a response by many people. |
| Lease Option | A contract that permits a party to lease real property while holding an option to purchase that property. |
| Mirror Image Rule | In contract law, the rule that an acceptance must duplicate the terms in the offer. |
| Offer | In contract law, a proposal made by one party to another indicating a willingness to enter into a contract. |
| Offeree | In contract law, the person to whom an offer is made. |
| Offeror | In contract law, the person who makes the offer. |
| Option or Option Contract | In contract law, the giving of consideration to support an offeror's promise to hold an offer open for a stated or reasonable length of time. (Also called Option Contract.) |
| Output Contract | An agreement in which a seller agrees to sell "all the goods we manufacture" or "all the crops we produce" to a particular buyer. (See also Requirements Contract.) |
| Public Offer | An offer made through the public media but intended for only one person whose identity or address is unknown to the offeror. |
| Rejection | The express or implied refusal by an offeree to accept an offer. |
| Requirements Contract | An agreement in which one party agrees to purchase all of his or her requirements of a particular product from another party. (See also Output Contract.) |
| Revocation | The calling back of an offer by the offeror. |
| Active Fraud | A false statement made or an action actually taken by one party with the intent to deceive a second party and thus lead that second party into a deceptively based agreement. |
| Bilateral Mistake | In contract law, a mistake made by both parties to a contract. Bilateral mistake allows rescission by either party. (Also called Mutual Mistake.) |
| Business Compulsion | Threats of a business nature that force another party without real consent to enter a commercial agreement. (Also called Economic Duress.) |
| Concealment | In insurance, the intentional withholding of a fact that would be a material importance to the insurer's decision to issue a policy. (See also Passive Fraud.) |
| Contract | An agreement based on mutual promises between two or more competent parties to do or to refrain from doing some particular thing that is neither illegal nor impossible. The agreement results in an obligation or a duty that can be enforced. |
| Current Market Price Contract | An agreement in which the prices are determined with reference to the market price of the goods on a specific date. |
| Cyber-Contract | A contract involving the sale or licensing of information in a digital format. |
| Duress | An action by one party that forces another party to do what need not be done otherwise. |
| Economic Duress | Threats of a business nature that force another party without real consent to enter a commercial agreement. (Also called Business Compulsion.) |
| Emotional Duress | Acts or threats that create emotional distress and lead a person into a contract against his or her will. |
| Fiduciary Relationship | A relationship based on trust such as exists between an attorney and a client, a guardian and a ward, a trustee and a beneficiary, or a director and a corporation. |
| Fraud | A wrongful statement, action, or concealment pertinent to the subject matter of a contract knowingly made to damage the other party. |
| Fraud in the Inception | Fraud that occurs when one party tricks another into a contract by lying to the innocent party about the actual nature of the contract. |
| Fraud in the Inducement | Fraud that occurs when one party tricks another into a contract by lying about the terms of the agreement to get the innocent party to enter the contract under false pretenses. |
| List Price | A price that the seller asks initially when the property is placed on market. |
| Material Fact | An essential or important fact; a fact of substance. |
| Misrepresentation | A false statement innocently made by one party to a contract with no intent to deceive. Also, in insurance, giving false answers to questions in an insurance application that materially affect the risk undertaken by the insurer. |
| Mutual Assent | In contract law, the state of mind that exists between an offeror and an offeree once a valid offer has been accepted and once the parties known what the terms are and have agreed to be bound by them. (Also known as "a meeting of the minds".) |
| Mutual Mistake | In contract law, a mistake made by both parties to a contract. Bilateral mistake allows rescission by either party. (Also called Bilateral Mistake.) |
| Nondisclosure | A failure to reveal some material fact about the subject matter of a contract that one party is obligated to reveal to the other party and that intentionally deceives that second party leading him or her into a damaging contract.(Also called Passive Fraud |
| Passive Fraud | A failure to reveal some material fact about the subject matter of a contract that one party is obligated to reveal to the other party and that intentionally deceives that second party leading him or her into a damaging contract.(Also called Nondisclosure |
| Physical Duress | Violence or the threat of violence against an individual or that person's family, household, or property that is so serious that it forces a person into a contract against his or her will. |
| Rescission | A remedy in contract law that returns both parties to a contract back to their original positions before the contract was entered into. |
| Sales Puffery | Persuasive words or exaggerated arguments made by salespeople to induce customers to buy their product. As long as such comments are reserved to opinion and do not misstate facts they are not actionable as fraud even if they turn out to be in error. |
| Undue Influence | The use of excessive pressure by the dominant member of a confidential relationship to convince the weaker party to enter a contract that greatly benefits the dominant party. |
| Unilateral Mistake | In contract law, a mistake made by only one of the contracting parties. Unilateral mistake does not offer sufficient grounds for recession or renegotiation. |
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dengler
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