H. contract

Agreement to do or not to do a certain thing

S. unilateral contract

Contract in which the offeror bargains for the performance of an act as the
acceptance of the offer

B. bilateral contract

Contract in which the promises mutually exchanged by each party
constitute the consideration for the contract

D. competence

Element of all valid contracts that requires the parties to be over 18, of
sound mind, and not deprived of civil rights

N. minor

Person under the age of 18

P. offer

Proposal indicating a present intent by the person making the proposal to
be bound by a contract

K. lapse of time

Way an offer is deemed to be terminated because the offeree failed to
respond within a reasonable period after the offer

A. acceptance

Manifestation on the part of the offeree to agree to the terms of an offer
unconditionally

I. counteroffer

Response to an offer that changes some term of the offer

M. mailbox rule

Exception to the rule that an offer must be communicated to an offeree,
making an acceptance binding upon deposit in the U.S. Mail

G. consideration

Any benefit conferred upon the promisor in a contract that will support
the formation of a contract

T. valid contract

Contract with all required elements and is therefore binding and
enforceable

Q. parol evidence

Oral statements made during the negotiation of a contract that are
“merged” into a written agreement upon its execution

F. condition subsequent

Event, which if it occurs, excuses one party from further obligations to
perform under a contract

E. condition precedent

Something that must happen before one party to a contract is obligated to
perform

L. liquidated damages

Term in a contract by which the parties agree that if one party breaches
the agreement, their liability is limited to a specific amount

O. mutual rescission

All parties to a contract agree to cancel the agreement and put
themselves back where they started

C. breach

Failure by one party to comply with his or her obligations under a
contract

R. statute of limitations

Time limit for someone to file a lawsuit or be forever barred from
enforcing a legal right in court

J. laches

Flexible time limit within which someone must seek an equitable remedy
from a court