Vocab
the ability to understand the consequences of a contract.
contractual capacity
a party to a contract is unable to understand the consequences of the contract
mental incapacity
accepting something of value for a promise not to inform on or prosecute a suspected criminal
compounding a crime
when competitors who bid on jobs agree one bidder will have to lowest bid on a particular job
bid rigging
certain amount of monetary damages that will be paid if a particular breach occurs
liquidated damages
age at which a person is entitled to the management of his or her own affairs
age of majority
mental impairment caused by voluntary use of alcohol, drugs, or inhalants
intoxication
state requirement for people in certain occupation and businesses to pass exams and receive a license
competency license
law stating that certain agreements are not enforceable in court unless they are evidenced by a signed writing
statute of frauds
token amount awarded when rights have been violated but there is no actual injury
nominal damages
nthe state of being below the age of majority; ends the day before the birthday of majority
age of minority
people who work for businesses or other types of organizations that have the capacity to bind the business to contracts
scope of authority
required license imposed by government for the sole purpose of raising money
revenue license
consists of words spoken prior to the execution of the final writing or at the time of signing
parole evidence
a court decree that the breaching party do exactly what was required under the contract
specific performance
things needed to maintain life (food, clothing)
necessaries or necessities
has three elements: 1) a prize, 2) chance (determined by luck), 3) consideration
Lottery
laws that prohibit competing companies from price fixing or dividing up sale regions
antitrust laws
the legal means by which a right is enforced or a right’s violation is prevented or redressed
remedy
injured party required by law to take reasonable steps to minimize the harm done
mitigating damage
the severing of the child-parent relationship
emancipation
a bet on the uncertain outcome of an event
wager
competing firms agree on the same price to be charged for a product or service
price fixing
money awarded to a party for foreseeable injuries caused by the other party’s breach
consequential damages
a party intentionally and explicitly gives up a contractual right
waiver