Term
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Definition
| In contract law, an essential ingredient in every contract in which the offeree clearly and unambiguously indicates to the offeror that she has accepted the latter’s offer.
There was an acceptance of the plaintiff’s offer when the defendant told her he would buy the truck if he did not indicate otherwise by the end of the month; he did not indicate otherwise. |
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Term
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Definition
| An agreement that is recognized by the courts as legally binding; i.e. one that contains an offer, acceptance, consideration, and the other essential ingredients of a binding agreement.
Mary’s agreement to come to John’s place for dinner next week is not a contract because the parties did not intend to be legally bound when they made their agreement and it also lacks consideration. |
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Definition
| In contract law, the legal principle applied to interpreting contracts containing exemption clauses, as well as waivers and releases. The clauses will be upheld but the court’s interpretation of any uncertainty or ambiguity will be “preferred against” the party relying upon the exemption clause.
Because of the contra proferentum rule, the supplier was unable to exempt itself of liability because the term stipulating what goods were re-saleable or not was open to several different interpretations. |
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Term
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Definition
| In contract law, another offer made by the offeree to counter an offer made by the offeror. The legal effect is to cause the first offer to lapse; it also causes the person making the counteroffer to become the new offeror.
The plaintiff offered to sell the goods to the retailer for $5,880, but the defendant made a counteroffer to purchase them for $5,000. |
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Term
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Definition
| A contract that is made between parties communicating to each other over the Internet, including contracts made by e-mail. Such contracts are governed by recent legislation, including the B.C. Electronic Transactions Act.
When George pressed a button saying he acknowledged he had accepted the terms of the offer made to him on the website he accessed, he entered into an e-contract. |
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Term
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Definition
| A term in a contract that stipulates one of the parties to the agreement is limiting his liability in some way or another. Such clauses will be upheld by the courts provided they are stated clearly and were deemed to have been brought to the attention of the party bound by those terms. (Note: in written contracts, in many cases the party signing is deemed to have had notice because the law assumes she read the contract before signing.)
The plaintiff could have recovered damages in excess of $50,000, but an exemption clause in her contract with the defendant indicated it could not be liable for any amount in excess of $10,000. |
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Term
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Definition
| In contract law, one of several ways in which a party can induce another party to make an offer, but not to be confused with the offer itself. Some examples include most newspapers ads, the display of goods in self-serve stores, and the publication of catalogues.
The “for sale” sign in front of the house indicating the price of $200,000 was an invitation to treat; the purchaser subsequently made an offer to purchase the property for $185,000. |
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Term
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Definition
| In contract law, the various ways in which an offer ceases to be effective. There are half a dozen ways in which this can arise, ranging from the expiration of the time that the offer was left open to such things as the making of a counter-offer or the death of the offeror.
The court found a lapse of the plaintiff’s offer occurred when the defendant told her that he did not want to pay what she asked for the computer. |
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Term
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Definition
| In contract law, a clear statement of a party initiating a contract in which the basic, if not all of the, terms of the agreement are stipulated; it must be stated in a clear and unequivocal manner, and it can be made orally, in writing, or even by conduct.
When the defendant phoned up the plaintiff and told her he would sell her his car for $10,000, he made what the law calls an offer, which she was then free to accept or reject. |
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Term
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Definition
| In contract law, a subsidiary agreement made to keep an offer to another (main) agreement open; it must be supported by separate consideration paid by the offeree to be enforceable against the offeror. If this agreement is made with respect to real estate, it can be a recognized interest in land that should be registered against the title at the Land Title Office.
To ensure that the dealership would keep its generous offer open until 5 p.m. Friday, the purchaser paid it a separate $50 by making an option agreement. |
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Term
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Definition
| In contract law, the principle that whenever parties are dealing with each other at a distance, an offer made by mail or telegram is deemed to have been accepted at the time the offeree leaves her acceptance with the post office or telegraph company, not when the offeror actually receives or reads the letter, unless the offeror clearly stipulated acceptance was to be made in some other fashion..
Because of the postbox rule, the defendant was deemed to have accepted the plaintiff’s offer by mail on May3, the day the defendant mailed a letter saying he would buy the merchandise at the price stated. |
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Term
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Definition
| In contract law, literally, the calling back or withdrawing of an offer by the offeror after it was made but before the offeree gets around to accepting it.
There was a revocation of the retailer’s offer when it contacted the supplier and advised that the goods would not be selling for that price after all; up to that time, the supplier had not indicated whether it intended to accept the offer. |
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Term
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Definition
| A common contractual arrangement whereby all or most of the terms of a contract are stated by the offeror in a written form or posted sign. These terms are deemed to have been accepted by the offeree when she purchases a ticket, signs the form, or complies with the offeror’s request in some other way.
The motorist entered into a standard form contract with the owners of the parking lot when he parked his car and paid for a ticket from a dispensary next to a sign containing the terms of the agreement between him and the parking lot. |
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Term
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Definition
| A contract in which the offeror, by the very terms of the offer, does not ask the offeree to indicate her acceptance of the offer, but to perform some act or deed instead. The offeree’s conduct is deemed to be the acceptance of the offer that was made.
The plaintiff was able to claim the reward money that had been posted by the defendant, because the law says she made a unilateral contract with the defendant: she accepted the terms of his offer by searching for and finding his dog after she saw the ad in the newspaper. |
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Term
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Definition
In contract law, an essential ingredient for every binding contract, unless the contract was made in writing under seal. It is something of value that passes from the promisee back to the promisor in an agreement. Although the defendant promised to fix the plaintiff’s fence in their agreement, their agreement was not enforceable because it lacked consideration; i.e. the plaintiff was not obliged to do anything in return for those repairs. |
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Term
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Definition
In contract law a promise that is made without consideration moving from the promisee to the promisor; hence, such promises are not enforceable. John’s promise to fix Mary’s car was a gratuitous promise because there was nothing of value going back from Mary to John. |
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Term
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Definition
Consideration that a party promises to pay after the latter has already performed some service or conferred some benefit on the former. Agreements containing past consideration are not enforceable as binding contracts (“past consideration is no consideration”). The defendant promised to pay the plaintiff $500 after she had voluntarily painted his fence for him while he was on vacation; when he later reneged on that promise, she could not enforce it against him because of the past consideration principle. |
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Term
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Definition
In contract law, a party in a contract who promises something of value to the other party, the promisee. Usually, the promisor is the same person as the offeror, but the former term is used when the legal issue revolves around whether the contract had consideration or not. Harry offered to give Jake $500 at the end of the month, but this agreement is unenforceable because nothing of value was going back from Jake to the promisor. |
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Term
Promissory estoppel (sometimes also referred to as “equitable estoppel”) |
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Definition
The legal defence in contract law that says, despite the technical absence of consideration, a promisor will not be allowed to stand on her strict legal rights in the contract if she has led the promisee to believe that she would not do so, and would also cause the promisor hardship by enforcing those strict legal rights. Because of promissory estoppel, the landlord was unable to evict the tenant for keeping a pet on the premises; although the lease clearly stated tenants would be evicted for keeping pets, the landlord had been aware the defendant had a dog for six months and had not given any indication of its disapproval of the tenant’s conduct.
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Term
| Quantum meruit – (Latin) Means literally “as much as one deserves.” |
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Definition
In contract law, the principle that says in the absence of agreement between the parties at the time a contract for services is made, the amount to be paid for the services rendered will be a reasonable amount, taking into account what such services would normally cost in that area at that time provided by that kind of service provider. Although the plumbers had not agreed with the office manager that their services would cost $889, under quantum meruit the court compelled the office to pay $500 as that amount was comparable to the going rate for such services in that area. |
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Term
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Definition
In contract law, some visual designation on a written contract that is recognized as being a substitute for consideration in the agreement. It used to be a wax impression; now it can be a formal red sticker opposite the signature or simply some designation that it is a seal. The defendant was compelled by law to give the car to the plaintiff, because he had promised to do so in writing under seal. |
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