Module 2: Contracts I Flashcards Preview

MOS 2275: Business Law > Module 2: Contracts I > Flashcards

Flashcards in Module 2: Contracts I Deck (17)
Loading flashcards...
1

parol evidence rule

a rule that limits the evidence a party can introduce concerning the contents of the contract

2

condition subsequent

an event or circumstance that brings an existing contract to an end when it occurs

3

condition precedent

an event or circumstance that , until it occurs, suspends the parties obligations to perform their contractual obligations (contract is not in effect until condition is met)

4

limitation of liability clause

a term of a contract that limits liability for breach to something less than would otherwise be recoverable (i.e. waivers, aka exemption clauses)

5

exemption clause

a term of a contract that identifies events causing loss for which there is no liability

6

liquidated damages clause

a term of a contract that specifies how much one party must pay to the other in the event of a breach

7

penalty clause

a term which is not enforceable because it sets an exorbitant amount that one party must pay to the other in event of breach

8

entire agreement clause

everything in the contract is expressed, excludes implied terms (could be bad if implied terms help protect you though)

9

standard form contract

a take it or leave it contract, where the customer agrees to a standard set of terms that favours the other side (usually leases)

10

option agreement

an agreement where, in exchange for payment, an offerer is obligated to keep an offer open for a specified time

11

variation of contracts

traditionally (and in some provinces i.e. ON) all variations of a contract must be support by fresh (new) consideration. in BC, if party which agrees to a gratuitous variation does it voluntarily, new agreement can still be enforceable, notwithstanding (despite) lack of fresh consideration

12

business efficacy

judges can imply terms that are necessary to make a contract workable i.e. assumed that staircases are built to code

13

objective standard test

a test based on how a "reasonable person" would view the matter

14

equal bargaining power

the legal assumption that parties to a contract are able to look out for their own interests

15

rebuttable presumption

a legal presumption in favour of one party that the other side can seek to rebut or dislodge by leading evidence to the contrary

16

promissory estoppel

a doctrine whereby someone who relies on a gratuitous promise may be able to enforce it

17

pre-existing legal duty

a legal obligation that a person already owes