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Acceptance

answer

an agreement to an offer resulting in a contract.

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Accord and Satisfaction

answer

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

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Agent

answer

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

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Alien corporation

answer

one that is incorporated in a foreign country.

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Answer

answer

official document detailing a defendant's defense.

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Antitrust

answer

laws which seek to promote competition among businesses.

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Appellate Court

answer

court hearing cases appealed from lower courts.

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Arraignment

answer

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

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Arrest

answer

to take into police custody.

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Assignee

answer

the party to whom the assignment is made.

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Assignment

answer

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

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Assignor

answer

the party making the assignment.

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Authority

answer

power to act for someone else.

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Bailee

answer

the party who acquires possession but not the title of personal property in a bailment.

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Bailment

answer

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

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Bailor

answer

the party who gives up possession, but not title, of property in a bailment.

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Bearer

answer

a person in possession of an instrument.

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Bearer Paper

answer

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

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Beneficiary

answer

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

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Bill of Lading

answer

the contract existing between the consignor (shipper) and the carrier.

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Bill of Sale

answer

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

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Blank Endorsement

answer

having no words other than the signature of the endorser.

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Board of Directors

answer

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

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Booking

answer

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.

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Breach of Contract

answer

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

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Business Law

answer

those rules of conduct prescribed by a government and its agencies, regulating business transactions.

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Capital Stock

answer

declared value of outstanding stock.

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Cashier's Check

answer

a check drawn on a bank's own funds and signed by a responsible bank official.

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Certificate of Deposit

answer

the acknowledgment by a bank of a receipt of money with an agreement of repayment.

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Certified Check

answer

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

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Check

answer

an order by a depositor on the bank to pay a sum of money to a payee. Civil Law — legal proceedings concerned with the rights of public citizens.

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Close (closed, closely held) corporation

answer

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

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Commercial Paper (Negotiable Instrument)

answer

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.

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Common Law

answer

customs that have become recognized by the courts as binding on the community.

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Common Stock

answer

stock that entitles owner vote.

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Compensatory Damages

answer

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

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Complaint (petition)

answer

a written request initiating a civil suit.

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Consideration

answer

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

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Consignee

answer

one to whom goods are shipped by common carrier.

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Consignor

answer

one who ships goods by common carrier.

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Contract

answer

an agreement between two or more competent persons which is enforceable by law.

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Contract to Sell

answer

an agreement wherein a seller agrees to transfer title of goods to a buyer for a consideration (price), at a future time.

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Contractual Capability

answer

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

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Corporation

answer

an artificial being, invisible, intangible and existing only in contemplation of law; an entity that has a distinct existence separate and apart from the existence of its individual members.

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Counteroffer

answer

an intended acceptance which changes or qualifies the offer, and is a rejection of the original offer.

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Creditor Beneficiary

answer

the person to whom the promise of a contract owes an obligation or duty which will be discharged to the extent that the promisor performs the promise.

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Crime

answer

an offense which is injurious to society as a whole.

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Criminal Law

answer

laws dealing with crimes and the punishment of wrongdoers.

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Defendant

answer

the person against whom legal action is brought. 1

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Disaffirmance

answer

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

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Discharge

answer

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

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Discovery

answer

pretrial steps taken to learn the details of the case.

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Domestic corporation

answer

operates in the state that granted the charter.

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Donee Beneficiary

answer

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

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Dormant or sleeping partner

answer

partner unknown to public with no part in management.

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Draft

answer

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

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Drawee

answer

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

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Drawer

answer

the person who executes any draft.

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Duress

answer

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

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Employee

answer

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

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Employer

answer

the party who hires employees to do certain work. "1 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.

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Endorsement

answer

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

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Endorser

answer

person who writes his or her name on back of instrument.

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Executed Contracts

answer

those contracts in which the parties have fulfilled the terms. Execution — the carrying out or completion of some task.

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Executory Contracts

answer

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

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Existing Goods

answer

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

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Express Authority

answer

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

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Express Contract

answer

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

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Express Warranty

answer

the actual and definite statement of a seller, either verbally or in writing, guaranteeing a standard or level of performance.

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Felony

answer

a criminal offense that is punishable by confinement in prison or by death.

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Fiduciary

answer

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

question

Foreign Corporation

answer

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

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Formal Contract

answer

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

question

Fraud

answer

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.

question

Future Goods

answer

those goods which are not in existence at the time a contract is agreed to.

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General Agent

answer

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.

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General Partner

answer

an individual actively and openly engaged in the business and held out to everyone as a partner.

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Goods

answer

movable tangible personal property.

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Holder

answer

one in possession of commercial paper.

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Identified Goods

answer

the goods specified by the buyer and seller.

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Implied Authority

answer

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

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Implied Contract

answer

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

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Implied Warranties

answer

a warranty imposed by law, arising automatically because the sale has been made.

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Independent Contractor

answer

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

question

Injunction

answer

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

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Intangible Personal Property

answer

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

question

Judgment

answer

a decision of a court.

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Law (Blackstone's Definition)

answer

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

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Limited Liability Corporation

answer

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

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Limited Partner

answer

partner whose liability for the firm's debts is limited to the amount of his/her investment.

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Liquidated Damages

answer

a provision in a contract fixing the amount of the damages to be paid in the event one party breaches the contract.

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Maker

answer

the person who executes a promissory note.

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Malpractice

answer

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

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Merchant

answer

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.

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Minor

answer

a person under full legal age; in most states (but not all), the standard is under the age of eighteen.

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Misdemeanor

answer

a criminal offense which is neither treason nor a felony.

question

Misrepresentation

answer

stating an untrue fact.

question

Necessaries (Necessities)

answer

items, required or proper and useful, for sustaining a human being at an appropriate living standard (examples: food, clothing and shelter).

question

Negligence

answer

failure to exercise ordinary care; omission to do something which a reasonable, prudent person would do under ordinary circumstances or the doing of something which a reasonable and prudent person would not do; the lack of due care (exercised by a wrongdoer who has not acted as a reasonable person would).

question

Negotiable Instrument (Commercial Paper)

answer

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

question

Negotiation

answer

the act of transferring ownership of a negotiable instrument to another party.

question

Nominal Damages

answer

a token award to symbolize vindication of the wrong done to the plaintiff; generally, the award is $1.00.

question

Nominal Partner

answer

person who pretends to be a partner or permits others to represent him or her as a partner.

question

Novation

answer

the change of one of the parties to a contract at the mutual agreement of the original parties.

question

Offer

answer

an expression of willingness to enter a contractual agreement.

question

Offeree

answer

the person to whom an offer is made.

question

Offeror

answer

the party who initiates, or makes, an offer.

question

Order Paper

answer

a commercial paper made payable "to the order of' some named party; the word "order" or its equivalent must be used.

question

Ordinances

answer

laws enacted by local municipalities.

question

Partnership

answer

the voluntary association of two or more people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit.

question

Par-value Stock

answer

stock with an assigned face vale.

question

Payee

answer

the party to whom any negotiable instrument is made payable.

question

Personal Property

answer

all property which is not real property.

question

Petition (Complaint)

answer

a written request initiating a civil suit.

question

Plaintiff

answer

the individual who initiates a civil action.

question

Preferred Stock

answer

stock giving special advantage as to payment of dividends, upon liquidation or both.

question

Price

answer

that consideration stipulated by contract, generally expressed in money or money's worth.

question

Principal

answer

a party who appoints a second party to serve as an agent.

question

Private Corporation

answer

a corporation formed by individuals to form some non-governmental function.

question

Process (Summons)

answer

a notice of complaint given to a defendant, defining the complaint and a time frame in which a response, or answer, must be filed, and which serves the purpose of conferring personal jurisdiction over the defendant.

question

Promissory Estoppel

answer

an equitable doctrine that prevents the promisor from revoking the promise when the promisee justifiably acts in reliance upon the promise to his detriment.

question

Promissory Note

answer

a negotiable instrument containing a promise to pay.

question

Promoter

answer

one who takes initial steps to form corporation.

question

Property

answer

anything that may be owned.

question

Public Corporation

answer

a corporation formed to carry out government functions.

question

Punitive Damages

answer

an award paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff.

question

Qualified Endorsement

answer

an endorsement which limits the liability of the endorser.

question

Ratification

answer

confirming an act that was executed without authority or an act which was voidable.

question

Real Property

answer

land and those objects permanently attached to land. Rejection refusal to accept.

question

Rescission

answer

canceling, annulling, avoiding.

question

Restrictive Endorsement

answer

an endorsement which prevents the use of the instrument for anything except the stated use.

question

Revocation

answer

the annulment or cancellation of an instrument, act or promise by one doing or making it.

question

Sale

answer

the transfer of title to goods from the seller to the buyer for a consideration called the price.

question

Secret Partner

answer

partner active in a business unknown to the public.

question

Service Contracts

answer

the contracting of services rather than goods.

question

Shareholders (Stockholders)

answer

those having title to one or more shares of stock in a corporation; combined, they represent ownership of the corporation.

question

Sherman Antitrust Act

answer

legislation intended to promote competition among businesses by prohibiting restraint of trade.

question

Silent Partner

answer

an individual who takes no active part in the management of a business but has capital invested in the business.

question

Simple Contract

answer

any contract other than a formal contract, whether written, oral or implied.

question

Sole proprietorship

answer

a business owned by one person.

question

Special Agent

answer

one authorized by the principal to execute specific acts.

question

Special Endorsement

answer

an endorsement which designates the particular person to whom payment is to be made.

question

Special Performance

answer

a contract remedy by which the court requires the breaching party to perform the contract.

question

Stare Decisis

answer

the principle that the decision of a court should serve as a guide or precedent and control the decision of a similar case in the future.

question

Statute of Frauds

answer

a statute originally enacted by the English Parliament and now enacted in some form in all states, listing certain types of contracts which could be enforced only if in written form.

question

Statute of Limitations

answer

a law that restricts the period of time within which an action may be brought to court.

question

Statutes

answer

laws which are enacted by legislative bodies.

question

Stockholders (Shareholders)

answer

those having title to one or more shares of stock in a corporation; combined, they represent ownership of the corporation.

question

Subchapter S Corporation

answer

a creation of the tax codes; shareholders elect to be taxed as a partnership (no double taxation) without losing corporation status.

question

Summons (Process)

answer

a notice of complaint given to a defendant, defining the complaint and a time frame in which a response, or answer, must be filed, and which serves the purpose of conferring personal jurisdiction over the defendant.

question

Third Party Beneficiary

answer

person not party to a contract, but whom parties intended to benefit.

question

Tort

answer

a private or civil wrong, either intentional or caused by negligence, for which there may be action for damages.

question

Treasury Stock

answer

stock reacquired by a corporation.

question

Trial Courts

answer

courts that conduct the original trial and render their decision.

question

Undue Influence

answer

improper influence that is asserted by one dominant person over another, without the threat or harm.

question

Unenforceable Contract

answer

an agreement which is not in the form required by law.

question

Uniform Commercial Code

answer

recognized as the most important statute in business law; includes provisions which regulate certain sales of goods.

question

Unilateral Contract

answer

a one-sided contract/agreement formed when an act is done in consideration for a promise. 01

question

Usurious

answer

exceeding the maximum rate of interest which may be charged on loans.

question

Valid Contract

answer

a contract which will be enforced by the court.

question

Void Contract

answer

an agreement of no legal effect.

question

Voidable Contract

answer

a contract that would be an enforceable agreement, but due to circumstances, may be set aside by one of the parties.

question

Warranties

answer

guarantees made by a seller that an article, good or service will conform to certain standard or will operate in a certain manner.

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