Contract Law Terms: American Rule, Assignment, Conditions, Covenants, and More, Quizzes of Accounting

Download Contract Law Terms: American Rule, Assignment, Conditions, Covenants, and More and more Quizzes Accounting in PDF only on Docsity! TERM 1 American Rule DEFINITION 1 a rule that stipulates that where there has been succcessive assignments of the same contract right, the first assignment in time prevails regardless of when notice was given to the obligor TERM 2 Anti-Assignment Clause DEFINITION 2 a clause that prohibits the assignment of rights under the contract TERM 3 Anti-delegation Clause DEFINITION 3 a clause that prohibits the delegation of duties under the contract TERM 4 Approval Clause DEFINITION 4 a clause that permits the assignment of a contract only upon receipt of an obligors approval TERM 5 Assignee DEFINITION 5 the party to whom a right to receive performance under a contract has been transferred TERM 6 Assignment and Delegation DEFINITION 6 the transfer of conractual rights by the obligee to another party. the transfer of rights under a contract TERM 7 Assignment of Rights DEFINITION 7 the transfer of rights under a contract TERM 8 Assignor DEFINITION 8 a party who transfers all of his or her interests under a lease to a new tenant by assignment TERM 9 Assumption of Duties DEFINITION 9 a situation in which a delegation of duties contains the term assumption, I assume the duties, or other similar language. In such case, the delegatee is legally liable to the oblige for nonperformance TERM 10 Concurrent Conditions DEFINITION 10 a condition that exists when the parties to a contract must render performance simultaneously, each partys absolute duty to perform is conditioned on the other partys absolute duty to perform TERM 21 delegator DEFINITION 21 an obligor who has transferred his or her duty of performance to another to complete TERM 22 discharge DEFINITION 22 discharge from liability on negotiable instruments TERM 23 donee beneficiary DEFINITION 23 a third party on whom a benefit is to be conferred under a done-beneficiary contract TERM 24 donee beneficiary contract DEFINITION 24 a contract entered into with the intent to confer a benefit or gift on an intended third party TERM 25 english rule DEFINITION 25 a rule that stipulates that where there have been successive assignments of the same contract right, the first person to give notice to the obligor prevails TERM 26 express condition DEFINITION 26 a condition in a contract that the parties have agreed on TERM 27 force majeure clause DEFINITION 27 a clause in a contract in which the parties specify certain events that will excuse nonperformance TERM 28 future right DEFINITION 28 a currently nonexistent right that a person is expected to have the future TERM 29 implied-in-fact condition DEFINITION 29 a condition that can be implied from the circumstances surrounding a contract and the parties conduct TERM 30 impossibility of performance DEFINITION 30 nonperformance that is excused if a contract becomes impossible to perform. it must be objective impossibility, not subjective TERM 31 incidential beneficiary DEFINITION 31 a third party who is unintentionally benefited by other peoples contracts TERM 32 intended third-party beneficiary DEFINITION 32 a third party who is not in privity of contraact but who has rights under the contract and can enforce the contract agains the promisor TERM 33 mutual rescission DEFINITION 33 mutual termination of a contract that occurs when the parties to a contract enter into a second contract that expressly terminates the first one TERM 34 notice of assignment DEFINITION 34 notice given by an assignee to an obligor under a contract that an assignment of the obligors duty of performance has been made and that his or her performance must be rendered to the assignee TERM 35 novation agreement DEFINITION 35 an agreement that substitutes a new party for one of the original contracting parties and relieves the exiting party of liability on the contract