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Contract Terminology Guide

Plain-English definitions of every contract clause your business will encounter. Includes real examples, red flags, and tips on using each term in your favor.

US Law  ·  288+ Terms  ·  For business owners and founders

Browse Contract Terms A–Z

Legal disclaimer: This guide is for informational purposes only. It does not constitute legal advice. Contract law varies by state and circumstance. Always consult a qualified US attorney before signing or drafting any contract.

A

Dispute Resolution
Arbitration Clause
Requires parties to resolve disputes through private arbitration rather than the courts.
Contract Structure
Assignment Clause
Governs whether a party can transfer its rights and obligations to a third party.
Financial
Acceleration Clause
Allows a lender to demand full immediate payment if the debtor defaults on terms.
Contract Formation
Acceptance
The unequivocal agreement by an offeree to the terms of an offer, creating a binding contract.
Intellectual Property
Account of Profits
An equitable remedy requiring a party to disgorge and pay over all profits earned from misappropriation or breach.
Risk Allocation
Act of God
An extraordinary natural event beyond the parties' control that may excuse performance under a contract.
Legal Concepts
Actus Reus
The guilty act or criminal conduct element of a crime, as opposed to criminal intent (mens rea).
Legal Procedures
Ad hoc
For the specific purpose or case at hand; a solution or arrangement made for one particular situation rather than as a general rule.
Legal Concepts
Ad idem
Latin phrase meaning "to the same" or "of one mind"; used to describe mutual agreement or consensus on contract terms.
Legal Procedures
Ad Interim
Latin phrase meaning "in the meantime"; refers to temporary or provisional measures or appointments made pending final action.
Legal Procedures
Ad testificandum
Latin phrase meaning "for the purpose of testifying"; refers to compelling a person to appear in court to give testimony.
Financial/Taxation
Ad valorem
Latin phrase meaning "according to value"; refers to a tax, fee, or duty calculated as a percentage of the value of goods or property.
Financial/Taxation
Ad Valorem Fees
Fees calculated as a percentage of value, commonly used in licensing, franchising, and commercial contracts.
Contract Structure
Addendum
A document added to a contract after execution to modify, clarify, or supplement the original agreement.
Legal Procedures
Adduce Evidence
To present or offer evidence in court or at trial to support a claim or defense.
Procedural Requirements
Adequate notice
Reasonable notification to a party of pending legal action or contractual obligations, given in sufficient time and manner.
Evidence Rules
Admissible Evidence
Evidence that meets legal standards for relevance and reliability and may be presented at trial or in legal proceedings.
Contract Terms
Affirmative Obligation
A contractual duty requiring a party to take positive action, as opposed to a negative obligation not to do something.
Core Concept
Agreement
A mutual understanding between two or more parties that creates enforceable rights and obligations, forming the basis of a contract.
Contract Management
Allocation
The distribution or assignment of resources, responsibilities, risks, or costs among parties to a contract.
Contract Structure
Annex
A document attached to and incorporated into a contract, typically containing detailed specifications, exhibits, or supplementary terms.
Dispute Resolution
Arbitration
A private dispute resolution process in which parties submit their case to a neutral arbitrator (or panel) whose decision is binding and final.
Dispute Resolution
Arbitrator
A neutral third party selected by the parties to hear their dispute and issue a binding decision in arbitration.
Contract Structure
Article
A numbered section or division of a contract organizing provisions into logical groups for clarity and organization.
Contract References
As amended
A phrase indicating that a referenced document includes all amendments and modifications, not just its original version.
Contract Formation
Assent
Agreement or consent by a party to the terms of an offer, which when mutual, creates a binding contract (mutual assent).
Contract Rights & Obligations
Assign
To transfer one's contractual rights or obligations to another party, making the assignee the new rights holder or obligor.
Contract Obligations
Assumption
The act of taking on or accepting contractual obligations from another party, becoming liable for those obligations.
Property Rights
Attornment
The act of a tenant or subordinate party agreeing to recognize a new landlord or superior party's rights over property.
Sales & Transactions
Auction
A public or private process of selling goods or property to the highest bidder, governed by contract and sale rules.
Agency & Representation
Authority
The power granted to an agent or representative to act on behalf of another party (the principal).

C

Privacy and IP
Confidentiality Agreement (NDA)
Legally binding contract where one or both parties agree not to disclose shared sensitive information.
Core Concept
Consideration
Something of value exchanged between parties - required for a contract to be legally enforceable.
Jurisdiction
Choice of Law Clause
Specifies which state's laws will govern the interpretation and enforcement of the contract.
Contract Formation
Capacity
The legal ability of a party to enter into a binding contract - requires being of legal age, sound mind, and not legally disqualified.
Contract Drafting
Carve-Out
An explicit exception to a general rule or restriction in a contract, creating a defined space where the rule does not apply.
Core Concept
Causa
The legal reason or basis for a contract obligation - the cause or purpose that gives a contract its legal force.
Buyer Protections
Caveat Emptor
Latin for "let the buyer beware" - the principle that buyers purchase at their own risk without seller warranty unless expressly provided.
Dispute Resolution
Cease and Desist
A formal demand to stop an activity that allegedly violates the sender's legal rights, often preceding litigation.
Liability
Civil Liability
Legal responsibility for harm or losses that a party must remedy through compensation or other court-ordered relief in a civil (non-criminal) proceeding.
Dispute Resolution
Claim
A formal assertion of a legal right or demand for compensation arising from an alleged breach or wrongdoing.
Remedies
Clawback
A contractual right to recover previously paid compensation or amounts upon the occurrence of specified triggering events.
Contract Parties
Co-Signer
A person who signs a contract alongside the primary party, sharing equal legal responsibility for the obligations.
Secured Transactions
Collateral
Property or assets pledged by a borrower to secure a loan, which the lender may seize if the borrower defaults.
Contract Formation
Collateral Agreement
A side agreement separate from the main contract that supplements or qualifies the primary agreement without contradicting it.
Contract Performance
Commencement Date
The date on which a contract's obligations, rights, and term officially begin.
Contract Performance
Commercial Reasonableness
A standard requiring parties to act in a manner that a reasonable business person in similar circumstances would consider appropriate.
Contract Obligations
Compliance
Adherence to contractual terms, applicable laws, regulations, and standards required of a contracting party.
Contract Obligations
Concurrent Obligation
Duties of both parties that must be performed at the same time - neither party need perform until the other performs simultaneously.
Contract Formation
Condition Precedent
An event or requirement that must occur before a party's contractual duty to perform is triggered.
Contract Performance
Condition Subsequent
An event whose occurrence after contract formation extinguishes a party's already-existing duty to perform.
Privacy and IP
Confidentiality Clause
A contract provision requiring one or both parties to keep specified information secret and not disclose it to unauthorized third parties.
Fiduciary Duties
Conflict of Interest
A situation where a party's personal interests compete with their contractual duties, potentially compromising their impartiality or loyalty.
Remedies
Consequential Damages
Indirect losses that flow from a breach of contract - foreseeable but not directly caused by the breach itself.
Contract Formation
Constructive Notice
Legal presumption that a party knew or should have known of certain information, regardless of actual knowledge.
Remedies
Constructive Trust
A court-imposed remedy requiring a party who wrongfully obtained property to hold it for the rightful owner's benefit.
Contract Formation
Contingency Clause
A provision making a contract or obligation dependent on a specified future event that may or may not occur.
Contract Formation
Contract Modification
A formal change to an existing contract agreed upon by all parties, altering one or more of its original terms.
Employment
Contract of Employment
A legally binding agreement between an employer and employee setting out the terms, conditions, and rights governing the employment relationship.
Contract Drafting
Contract Out
To expressly exclude or override a default legal rule or statutory provision by agreement in a contract.
Core Concept
Contractual
Relating to, arising from, or governed by a contract - as opposed to statutory, tortious, or equitable obligations.
Real Property
Conveyancing
The legal process of transferring ownership of real property from one person to another, including all associated documentation and formalities.
Contract Performance
Coterminus
Having the same end date or boundaries - used to describe multiple agreements or obligations that expire simultaneously.
Contract Formation
Counterpart
A duplicate original of a contract signed by one party, which together with other signed duplicates forms a complete executed agreement.
Contract Interpretation
Course of Dealing
A sequence of prior conduct between parties that establishes a common basis for interpreting their current agreement.
Contract Obligations
Covenant
A formal, binding promise in a contract to do or refrain from doing a specific act, breach of which gives rise to a legal remedy.
Contract Parties
Covenantee
The party in whose favor a covenant is made - the person entitled to enforce the promise.
Contract Parties
Covenantor
The party who makes a covenant - the person bound by the promise and obligated to perform or refrain from performing.
Dispute Resolution
Cross-Claim
A claim brought by one party against a co-party arising from the same transaction or occurrence at issue in the litigation.
Contract Breach & Remedies
Curable
Describes a breach or default that can be remedied within a specified cure period, preventing termination if fixed on time.
Contract Obligations
Curtail
To reduce, limit, or cut back a right, obligation, or scope of performance under a contract.
Contract Parties
Custodian
A person or entity holding and safeguarding property or assets on behalf of another, without ownership of the held assets.
Contract Performance
Cut-Off Date
A deadline in a contract after which certain rights, obligations, or claims are extinguished or no longer available.
Contract Formation
Capacity
The legal ability of a person or entity to enter into a binding contract - requiring minimum age, sound mind, and proper authorization.
Contract Formation
Causa
The underlying legal reason or basis that justifies a contract obligation, analogous to consideration in civil law systems.
Dispute Resolution
Cease and Desist
A formal demand requiring a party to stop an allegedly unlawful activity immediately and permanently.
Liability
Civil Liability
Legal responsibility in civil law to compensate another party for harm caused by breach of contract or tortious acts.
Dispute Resolution
Claim
A formal assertion of a right to payment, performance, or legal remedy arising from an alleged wrong or breach.
Remedies
Clawback
A contractual provision requiring the return of previously paid compensation or funds if specified conditions are not met.
Contract Formation
Co-Signer
A person who signs alongside the primary party, taking on equal legal responsibility if the primary party defaults.
Contract Structure
Commencement Date
The specific date on which a contract's obligations and term officially begin - which may differ from the signing date.
Contract Performance
Commercial Reasonableness
A standard requiring a party to act consistently with practices accepted in the relevant industry using ordinary business judgment.
Contract Performance
Compliance
Adherence to all applicable laws, regulations, industry standards, and contractual obligations throughout the contract term.
Contract Performance
Concurrent Obligation
Obligations that are mutually dependent and must be performed simultaneously - neither party need perform first.
Contract Formation
Condition Precedent
An event that must occur before a party's contractual obligation becomes due or before a contract takes legal effect.
Confidentiality
Confidentiality Clause
A contractual provision requiring one or both parties to keep designated information secret and not disclose it to third parties.
Remedies
Consequential Damages
Indirect losses flowing from a breach - such as lost profits - that are foreseeable but not the direct cost of the breach itself.
Contract Interpretation
Constructive Notice
Legal knowledge a party is presumed to have because information was publicly recorded - even if they did not actually know it.
Remedies
Constructive Trust
An equitable remedy requiring a party who wrongfully holds property to transfer it to the party rightfully entitled to it.
Contract Formation
Contingency Clause
A provision making contract obligations conditional on a future event - if not satisfied, the protected party may withdraw without penalty.
Contract Administration
Contract Modification
A mutual agreement to change one or more terms of an existing contract, requiring consent and (under common law) fresh consideration.
Legal Procedure
Case of First Impression
A legal case presenting a novel issue that no court in that jurisdiction has previously ruled on, requiring the judge to establish new precedent.
Litigation
Cause of Action
The legal basis for a lawsuit - the specific claim (e.g., breach of contract, negligence) that entitles the plaintiff to seek relief from the court.
Litigation
Class Action
A lawsuit filed by one or more plaintiffs on behalf of a large group of people with similar claims, allowing collective pursuit of claims too small to litigate individually.
Property Rights
Co-Ownership
Ownership of property by two or more persons simultaneously; includes forms like joint tenancy, tenancy in common, and community property.
Guaranty & Surety
Co-Sureties
Two or more parties who jointly guarantee the same obligation, each bearing a proportional share of liability if the principal debtor defaults.
Regulatory Framework
Code
A systematic collection of laws, regulations, or rules organized by subject (e.g., US Code, Internal Revenue Code, UCC); often referenced in contracts to specify governing law.
Corporate Governance
Code of Conduct
A written policy document setting out behavioral standards and ethical expectations for employees, contractors, and business partners; violations can trigger contract termination.
Financial
Coffers
The funds, treasury, or financial reserves of an organization; used in contracts and legal documents to refer to an entity's available monetary resources.
Evidence & Argument
Cogency
The quality of evidence or legal argument being clear, logical, and convincing; cogent evidence is relevant, credible, and directly supports the point being proved.
Contract Types
Collateral Contract
A secondary contract between the same (or related) parties that supports the main agreement, often containing a promise that induced the other party to enter the main contract.
Contract Scope
Collateral Matters
Issues or terms that are incidental or secondary to the main subject of a contract but still relevant to performance or the parties' relationship.
Estate & Succession
Collateral Relatives
Family members who are related through a common ancestor but not in the direct line of descent (e.g., siblings, aunts, uncles, cousins); relevant in intestate succession and trust distributions.
Fraud & Deception
Collusive
Describing conduct, agreements, or litigation that involves secret cooperation to defraud or deceive a third party or the court; collusive conduct voids contracts and may result in criminal liability.
Legal Procedure
Colorable
Appearing valid or legitimate on its face but actually lacking substance; a colorable claim has enough surface plausibility to warrant examination even if ultimately without merit.
Contract Classification
Commercial
Relating to trade, business, or profit-making activities; in contract law, "commercial" distinguishes business dealings from consumer or personal transactions, often attracting different rules and standards.
Compensation
Commission
A fee paid to an agent, broker, or salesperson calculated as a percentage of the value of a transaction they facilitate; the commission structure, rate, and trigger events must be clearly defined in contracts.
Obligations
Committed
Having made or undertaken a binding obligation or promise; being committed to a course of action in a contract means the party has accepted the obligation and cannot unilaterally withdraw without consequence.
Property Law
Commodatum
A gratuitous loan of a non-consumable item for the borrower's use, which must be returned in the same condition; the lender bears ownership costs but the borrower bears risk of loss from negligent use.
Property / Privilege
Common Interest
A shared legal interest held by multiple parties, such as co-owners of property or parties with a shared litigation privilege (common interest doctrine preserves attorney-client privilege when shared counsel communicate).
Contract Formation
Communication
The transmittal of information, offers, acceptances, or notices between parties; how and when communications are made affects offer/acceptance timing, notice effectiveness, and contract formation.
Contract Types
Commutative Contract
A contract where each party gives and receives equivalents of equal value - typical of most commercial contracts. Contrasts with aleatory contracts (gambling, insurance) where performance depends on chance.
Business Entities
Company
A legal entity formed to conduct business; in US law, typically refers to corporations, LLCs, or partnerships. Contracts use this term to include all recognized business forms unless otherwise specified.
Legal Remedies
Compel
To force a party to act or refrain from acting through court order; courts can compel discovery, compel arbitration, or compel specific performance. Failure to comply may result in contempt.
Legal Procedure
Compelled
Forced by court order or legal obligation to perform an act or provide information; compelled testimony cannot be refused (except on Fifth Amendment grounds), and compelled production of documents is mandatory once ordered.
Payments & Remedies
Compensation
Payment or remuneration given in exchange for services, property, or loss; in contracts, the compensation structure defines how, when, and how much each party is paid.
Legal Capacity
Competence
The legal and mental ability to enter a binding contract or testify; a person lacks competence if they are a minor, legally declared incompetent, or lacked mental capacity at the time of contracting.
Litigation
Complaint
The initial pleading filed by a plaintiff in a lawsuit that sets out the claims, legal basis, parties, and relief sought.
Performance Standards
Compliance in Good Faith
Performing contractual obligations honestly and with genuine effort to meet the spirit and intent of the agreement.
Contract Performance
Complied
Having fulfilled the requirements of a contract, law, or court order; demonstrating compliance is often a condition precedent.
Contract Performance
Comply
To act in accordance with the requirements of a contract, regulation, court order, or law; failure to comply constitutes a breach.
Criminal / Civil Law
Compoundable
Describing an offense or claim that the parties can settle privately without public prosecution; refers to disputes that can be resolved by agreement.
Dispute Resolution
Compromise
A mutual agreement to settle a dispute by each party giving up something; a binding compromise is itself a contract.
Legal Requirements
Compulsory
Mandatory by law or court order; cannot be avoided or opted out of; compulsory counterclaims must be raised in the current action.
Negotiation / Litigation
Concede
To acknowledge or yield a point in negotiation or litigation; parties may concede interpretation issues.
Intellectual Property
Conceived
The moment when an invention is first reduced to a definite and permanent idea in the inventor's mind.
Negotiation / Commercial
Concession
A right or privilege granted by one party to another; also a compromise or yield in negotiations.
Dispute Resolution
Conciliation
A non-binding dispute resolution process where a neutral conciliator helps parties reach a voluntary settlement.
Evidence Law
Conclusive Proof
Evidence that is irrefutable and binding on the court; establishes a fact so definitively that no contrary evidence is admissible.
Legal Drafting
Conclusory
A statement that asserts a conclusion without providing facts or reasoning to support it.
Evidence Law
Concrete Evidence
Specific, tangible proof that directly supports a factual claim, as opposed to speculation or circumstantial evidence.
Criminal Law / Procedure
Concurrence
The requirement that the criminal act and intent occur simultaneously; also a judge's written agreement with the court's outcome but for different reasons.
Obligations / Jurisdiction
Concurrent
Happening at the same time; concurrent obligations must be performed simultaneously; concurrent jurisdiction means multiple courts have authority.
Contract Timing
Concurrently
At the same time; simultaneous performance of obligations by both parties at the same moment or during the same period.
Legal Procedure
Concurring
Agreeing with the outcome of a court decision but for different or additional reasons than those stated in the majority opinion.
Contract Formation & Performance
Conduct
The actions or behavior of a party that can create, modify, or waive contractual obligations - and may substitute for an express written agreement.
Business Arrangements
Consortium
A group of independent entities combining resources and expertise to pursue a common project or objective, governed by a consortium agreement defining each member's roles, rights, and liabilities.
Property Law
Constructive Delivery
A legally recognized form of delivery where physical transfer is impractical; occurs by handing over the means of control (e.g., keys, documents of title) rather than the item itself.
Contract Types
Contract of Adhesion
A standard-form contract drafted by one party on a take-it-or-leave-it basis; courts scrutinize adhesion contracts for unconscionability and may refuse to enforce oppressive terms.

D

Remedies
Damages
Monetary compensation awarded to an injured party when the other party breaches a contract.
Performance
Default
Failure to fulfill a contract obligation, triggering the other party's right to seek remedies.
Pre-Contract
Due Diligence
Investigation or audit of a potential deal or contract before signing.
Corporate Governance
Deadlock
A situation in a company or partnership where owners or directors are equally split and unable to reach a decision, potentially requiring external resolution mechanisms.
Financial Instruments
Debenture
A long-term, unsecured debt instrument issued by a company to raise capital, typically paying fixed interest and redeemable at a future date, backed only by the issuer's creditworthiness.
Litigation
Defendant
The party against whom a lawsuit is filed; the person or entity required to respond to the plaintiff's claims in court.
Corporate Law
Derivative Action
A lawsuit filed by a shareholder on behalf of a corporation to enforce the corporation's rights when the board fails to act; any recovery goes to the corporation, not the shareholder directly.
Legal Remedies
Deterrence
A goal of contract damages and penalties designed to discourage future breaches by making breach economically unattractive; contrasts with compensatory purpose.
Property Law
Detinue
An old common law claim for the wrongful detention of personal property belonging to another; the plaintiff seeks return of the specific item or its value.
Contract Formation
Detriment
Something of legal value given up or a legal right surrendered by a party in exchange for a promise; acts as consideration when it benefits the promisor.
Contract Termination
Discharge of Contract
The termination of a party's contractual obligations - can occur through performance, agreement, frustration, breach, or operation of law.

E

Contract Structure
Entire Agreement Clause
States the written contract is the complete and final agreement, superseding all prior negotiations.
Legal Principle
Estoppel
A legal doctrine preventing a party from going back on a promise another party reasonably relied on.
Negotiable Instruments
Endorsement
Signing the back of a negotiable instrument (check, promissory note) to transfer it to another; also means formally approving or supporting a claim, product, or agreement.
Liability
Exculpatory Clause
A contract provision that relieves one party from liability for their own negligence or wrongdoing; courts scrutinize these clauses strictly and may refuse enforcement if unconscionable or against public policy.
Contract Performance
Executory Contract
A contract where one or both parties still have significant obligations yet to be performed; contrasts with an executed contract where all obligations have been fully performed.
Contract Terms
Express Provision
A term or condition that is explicitly stated in a contract in clear language, as opposed to an implied term that arises from context, custom, or law.
Government Powers
Expropriation
The government's taking of private property for public use, with or without adequate compensation; in international contracts, refers to government seizure of a foreign investor's assets.
Criminal Law / Contract Validity
Extortion
The crime of obtaining property or promises through threats, coercion, or fear; contracts made under extortionate pressure are void or voidable and the conduct may be criminally prosecuted.

I

Liability
Indemnification Clause
One party agrees to compensate the other for losses, damages, or costs from specified events.
Warranties
Implied Warranty
An unwritten guarantee created by law that a product or service meets a basic standard.
Contract Performance
Immaterial Breach
A minor failure to perform that does not substantially defeat the purpose of the contract; the non-breaching party can seek damages but cannot terminate the contract as they could with a material breach.
Property Law
Immovable Property
Real property - land and permanent structures attached to it; contrasts with movable/personal property. Sale and transfer of immovable property must comply with Statute of Frauds (written form requirements).
Legal Defenses
Immunity
Protection from legal liability, suit, or prosecution; includes sovereign immunity (government), judicial immunity, and contractual indemnity that functions as immunity from third-party claims.
Contract Performance
In Default
The state of having failed to fulfill a contractual obligation; triggers the other party's remedies including acceleration, termination, or damages depending on the contract terms.
Performance Standard
In Good Faith
Performing or dealing honestly, fairly, and without deception; the UCC imposes a general obligation of good faith in every contract for the sale of goods, and courts imply it in most commercial contracts.
Contract Duration
In Perpetuity
Without time limit; forever. IP licenses, confidentiality obligations, and restrictive covenants that run "in perpetuity" are enforceable but scrutinized - some courts limit perpetual non-competes.
Financial Assurance
Indemnity Bond
A bond that protects the obligee from financial loss if the principal fails to perform; used in construction, licensing, and fiduciary relationships to guarantee the principal will honor their obligations.
Legal Documents
Instrument
A formal written legal document such as a contract, deed, note, or bond; negotiable instruments (checks, promissory notes) are governed by UCC Article 3.
Legal Latin
Inter Alia
Latin for "among other things"; indicates a list is not exhaustive and applies to additional matters beyond those explicitly named.
Financial Terms
Interest
The cost of borrowing money, calculated as a percentage of principal; in contracts, interest provisions set the rate, accrual method, compounding, and default penalties.
Contract Terms
Irrevocable
Cannot be canceled, withdrawn, or modified unilaterally; irrevocable letters of credit, trusts, and firm offers create binding, non-cancellable commitments.

P

Remedies
Penalty Clause
Requires a breaching party to pay a sum that punishes rather than compensates. Often limited by courts.
Construction / Finance
Performance Bond
A surety bond guaranteeing a contractor will complete a project as specified.
Contract Interpretation
Parol Evidence Rule
Bars the use of prior or contemporaneous oral agreements to contradict a final written contract.
Contract Basics
Party
A person or entity that enters into and is legally bound by a contract.
Payment
Payee
The person or entity designated to receive payment under a contract or financial instrument.
Payment
Payment Terms
The conditions governing when and how payment is due - including amount, timing, and method.
Liability
Piercing the Corporate Veil
A doctrine allowing courts to hold shareholders personally liable by disregarding the corporate entity.
Litigation
Plaintiff
The party who initiates a lawsuit by filing a complaint against a defendant.
Agency
Power of Attorney
A legal document authorizing one person to act on behalf of another in legal or financial matters.
Contract Basics
Privity of Contract
The legal relationship between contracting parties; only parties in privity can sue on the contract.
Contract Formation
Promissory Estoppel
Enforces a promise when the other party reasonably relied on it to their detriment, even without consideration.
Finance
Promissory Note
A written promise to pay a specific sum of money at a set time or on demand.
Remedies
Punitive Damages
Damages awarded to punish particularly egregious conduct - rarely available in contract disputes.
Procurement
Purchase Order
A buyer's formal written offer to purchase goods or services at specified terms.
Liability
Personal Liability
Individual responsibility for debts or obligations, exposing personal assets to claims.
Agency
Principal
A party who authorizes an agent to act on their behalf in legal and business transactions.
Payment
Pro Rata
Proportional allocation of amounts based on a party's share or ratio of the whole.
Contract Interpretation
Precedent
A prior court decision that guides or binds future decisions on similar legal issues.
Contract Formation
Pre-Existing Duty
A rule that a promise to do something already legally required cannot serve as valid consideration.
Payment
Prepayment
Payment made before the contractual due date, which may trigger fees or penalties.
Finance
Pledge
The delivery of personal property as collateral security for a debt or obligation.
Dispute Resolution
Provisional Remedy
Temporary court relief - such as an injunction or attachment - granted before the merits are decided.
Agency
Proxy
Authorization for one person to act for another, especially to vote on behalf of a shareholder.
More terms coming soon
Detailed pages for all A-Z terms are being added. Currently 288 terms have full detail pages.
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