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Glossary of Contract Action Terms Aleatory Contract A gambling contract Ambiguous Having two or more meanings. Not clear; vague. Antenuptial A contract entered into before marriage to determine control over disposition of the individual assets of each party. Arbitration The submitting of a matter in dispute to the judgment of disinterested persons(s), called arbitrators, whose decision is binding upon the parties. Assignment A transfer of a contractual right. Bilateral Contract Where it is contemplated by the offeror that the offeree shall make a return promise to give certain performance. Chose in Action A right to demand by action a debit or sum of money. Condition Concurrent A type of condition precedent which exists when the parties to a contract are bound to render performance at the same time. Condition Present A condition which delays the establishment of a right until a specified event has happened. Condition Subsequent A condition which has the effect of terminating liability for a breach which has already occurred. Consideration That which is bargained for and given in exchange for a promise Constructive Condition Conditions which do not arise out of the agreement of the parties but are imposed by the Courts as a matter of fairness and justice Counter Offer A manifestation by the offeree of a present willingness to deal on different terms. Credit Beneficiary A third party qualifies as a creditor beneficiary where no purpose to make a gift appears and performance by the promisor will satisfy an obligation owing by the promisee to the beneficiary Disputed Claim An unsettled assertion of a right. Divisible Contract A contract wherein the performance of the parties is divided into two or more separate units, and performance of each part by one party is the agreed exchange for a corresponding performance by the other Party. Donee Beneficiary A third party qualifies as a donee beneficiary where it appears that the intent of the promisee in obtaining the promisor's promise of performance is to make a gift to the beneficiary. Equivocal Having two or more meanings; purposely ambiguous Estoppel An admission or declaration by which a person is prevented from bringing evidence to controvert it, or prove the contrary. Gratuitous Assignment An assignment for which no consideration is given Gratuitous Promise A promise for which the promisor does not bargain for anything in exchange for his promise. Illusory Promise One which by its terms imposes no obligation upon the person making it. Incidental Beneficiary A third person who will benefit from performance of a contract, but who does not qualify as a donee or creditor beneficiary. Insolvency The state of one who has no property sufficient for the full payment of his debts, or who is unable to pay his debits as they fall due in the usual course of business. Irrevocable Incapable of being revoked. Legal Detriment Unilateral contracts: promisee is doing something which he was not previously obligated to do, or is giving up a legal right.
Bilateral contracts: each promisee is promising to do something which he was not previously obligated to do, or is promising to give up a legal tight. Liquidated Debt Fixed; ascertained. The exact amount that must be paid. Mortgage, -ee, -or A conveyance of property, real or personal, to a person called the mortgagee, to secure the performance of some act, such as the payment of money, by the mortgagor. Novation A new contract which works on immediate discharge of a preexisting contractual duty and creates a new duty in its stead. Option Contract A power or right to choose which has been "paid for." Quasi Contract Recovery based upon the theory that the defendant has been unjustly enriched at the plaintiff's expense and that, as a matter of fairness, the defendant should reimburse the plaintiff for the benefit conferred. Reformation The correction of an instrument so as to make it express the true intentions of the parties. Rejection A manifestation by the offeree that he does not intend to accept the offer or to give it further consideration. Repudiation An apparent inability to perform. Rescission Rescinding or putting an end to a contract by the parties, or one of them. Restitution A restoring of whatever benefits have been conferred under a contract. Revocation A manifestation by the offeror that he no longer intends to enter into the proposed contract. Unilateral Contract Where it is contemplated by the offeror that he shall not be bound by his offer until he has received performance by the offeree. Unliquidated Debt The amount that must be paid is not ascertained. Usury Originally, interest charged for the use of money. Now, illegal interest only. Vendee One to whom anything is sold. Vendor One who sells anything. Voidable Promise Of imperfect obligation, so that it may be legally annulled or, on the other hand, cured or confirmed at the option of one of the parties. Waiver A surrendering of a right to decline to take advantage of.