Remedies
Predetermined, reasonable sums of money written directly into the contract to be paid out in the event of a specific breach.
Liquidated damages
Parties to a contract
Promisor and promisee
A person who benefits accidentally from a contract.
Incidental beneficiary
legal arguments used to show that a contract is invalid, unenforceable, or voidable because one or more essential elements of a valid contract were missing or improperly obtained at the time the agreement was made.
Defenses to contract formation
A court order requiring a party to perform contractual obligations.
Specific performance
Something of value exchanged between parties.
Consideration
The person who transfers contractual rights.
Assignor
The substitution of a party to the contract or party for a new party with the consent of all parties involved
Novation
A remedy intended to place the injured party in the position they would have been in if the contract had been performed.
Expectation damages
An agreement lacking legal effect because one essential element is missing.
Void contract
The fundamental common law rule that only direct parties to a contract can enforce its terms, obligations, or liabilities.
Privity of contract
A clear statement or action by one contracting party indicating that they will not perform their contractual obligations before performance is due.
Anticipatory breach
This equitable remedy cancels a contract and returns parties to their original positions.
Rescission
A statement containing different terms from the offer.
Counteroffer
The transfer of contractual duties or obligations to a third party.
Delegation
A contract term preventing transfer of rights without permission.
Non-assignment clause
Damages awarded not for actual loss, but to recognize a legal wrong occurred.
Nominal damages
A legally binding agreement formed through the actions, behavior, or circumstances of the parties rather than through spoken or written words.
Implied contract
CThe exact moment a third party's rights under a contract become locked in, meaning the original contracting parties can no longer modify or cancel the contract without the beneficiary's consent.
Vesting
The legal basis or set of facts that gives a person the right to sue for breach of contract.
Cause of action