Contracts Overview and Types

A ______ is a legal and lawful agreement, enforceable by law, with specific terms between two or more people or entities.

A contract involves a ______ to do something in return for a valuable benefit.

The ______ might fail to work appropriately or keep to the expected schedule.

The ______ might provide a good or service that doesn't meet the buyer's expectations.

______ conditions apply to all contracts.

Contracts can be ______ or written.

The most common business contract is the ______ of goods.

Most contracts are ______, with a promise exchanged for performance of an act.

If neither party has fulfilled their obligations, the consideration is the mutual ______ of rights.

If performing the contract becomes impossible, it's ______.

If the contract isn't enforced within a specified time (period of limitation), it's ______.

Contracts are ______ if a party dies, particularly those involving personal service.

Breach occurs when a party fails to fulfill their ______ obligations.

______ breach: One party declares they won't fulfill their obligations before the performance is due.

______ breach: A party fails to fulfill their obligations at the due date, or only partially meets the terms.

Damages: A sum of money to compensate for ______ loss.

Rescission: The contract is ______, returning parties to their pre-contractual positions.

Specific performance: The breaching party must fulfill their ______ duties.

______ performance occurs when a party accepts a portion of the performance from the other party.

Complete performance occurs when all ______ of the contract are met.

Europcar's offer: Based on the criteria, Europcar presents several offers matching the ______.

A contract exists upon acceptance of the offer by the ______.

______ is crucial because it signifies mutual agreement, forming a legally binding contract.

Clarke insures his factory with three companies and it burns down, he can only claim from ______.

You can only insure something in which you have an ______ interest—where you stand to make a personal or business loss.

Liability is being legally ______ by law.

Negligence is the ______ to exercise the care a reasonable person would in the same circumstance.

Alleynes' ability to claim on its freezer insurance involves ______ good faith (truthful claim details) and proximate cause (power outage causing ice cream melt).

A ______ policy pays a lump sum after a specific term or upon death.

______ insurance protects against employee dishonesty or fraud.

Insurance reduces ______ in business, a inherently risky endeavor.

Insurance allows businesses to ______ potential financial losses from various unforeseen events, thus boosting their confidence to engage in more ventures.

______ credit insurance specifically benefits exporters.

A ______ note is a document indicating additional money owed due to errors or additional charges.

A ______ of account summarizes all transactions and payments between the buyer and seller over a specific period.

The ______ form would include specific book titles and ISBNs, quantities of each book, agreed prices, and delivery address.

An invoice is a formal request for ______ from a supplier to a buyer.

The ______ amount owed is the final amount due on an invoice.

A ______ invoice acts as a contractual agreement between the buyer and seller.

A purchase requisition form is used by a ______ to order supplies.

A statement of account shows the ______ balance, transactions during the period, and closing balance.

A ______ card tracks stock levels.

An ______ contract is an agreement made with an insurer to pay premiums in exchange for cover.

______ of risk means insurance companies pool premiums from many clients to pay out claims for a smaller number of clients.

Subrogation means to take the place of the ______ for which the claim is made.

Proximate cause is the original event that caused the ______ or loss.

Indemnity puts someone back in their position before a ______.

Utmost good faith means all parties in an insurance agreement have disclosed all relevant information ______.

A ______ is a proposal establishing willingness to enter a legal agreement.

In a contract, ______ is the act of agreeing to the terms of an offer.

A ______ contract is one under seal, often used for serious transactions like land sales or mortgages.

A contract declared by a court of law and entered into court records is called a ______ of record.

A simple contract must involve ______ of the parties, meaning they have the legal capacity to enter into an agreement.

The parties involved in a contract must have the ______ to create legal relations, meaning they intend to be legally bound by their agreement.

In a contract, ______ is the exchange of something of value for another thing of value.

______ consideration is an immediate exchange of value, while ______ consideration involves an exchange that will happen in the future.

______ agreement occurs when both parties exchange promises, each serving as consideration for the other.

A ______ agreement is when one party makes a promise in exchange for the other party's performance.

The party making an offer is called the ______.

The party receiving an offer is called the ______.

A ______ is a response to an offer that changes the original terms, effectively terminating the original offer.

A display of goods in a store is typically considered an ______ to treat, not a legally binding offer.

The case of ______ v. ______ Smoke Ball Co. (1893) highlights the concept of offers made to the world.

Acceptance of an offer must be ______ and ______, meaning it cannot be conditional or add new terms.

The contract is formed when the ______ is received by the offeror.

For postal acceptance, the contract is formed when the ______ is posted.

The person who accepts an offer is known as the ______.

A contract can be ______ (terminated) when the obligations of both parties are fulfilled or under certain circumstances.

One way to discharge a contract is by ______, where both parties mutually agree to end the contract.

The most common method of contract discharge is through ______, where all parties fulfill their obligations.

A ______ is a guarantee given on the performance of a product or service.

A contract can be discharged by ______ of contract, which occurs when one party fails to fulfill their obligations.

The contract's duration expiring is a method of discharge known as ______ of time.

An unforeseen event that makes contract performance impossible is known as ______ or frustration.