Matching T erm

1. Contract: an agreement which the parties intend to be legally binding

2. Privity of Contract：a contract cannot confer rights or impose obligations on anyone who is not a party to it, and nobody other than the parties can enforce that contract or have in enforced against him.

3. Agency：the relationship between the principal and the agent.

4. Joint obligation：a single obligation owed jointly by all the members of the group.

5. Several obligation：an obligation which is spilt between the members of the group.

6. Offer: An expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed.

7. Acceptance: An express act or implication that manifests assent to the terms of an offer so that a binding contract is formed.

8. Consideration: Something of value given by both parties to a contract that includes them to enter into the agreement to exchange mutual performances.

9. Counter offer: An offer made in response to a previous offer by the other party during negotiations for a final contract.

10. Contractual capacity: The ability of both natural and legal person

determine whether they may make binding amendments to the rights,

duties and obligations.

11. Strict Liability: Each party has to perform its obligations under that

contract exactly and in full, and anything less than exact and full performance is breach of the contract by that party.

12. Interpretation of a contract: A matter of working out, from the

terms of that contract, what the parties meant at the time the contract was made.

13. De minimis: The discrepancy is too small to amount to a breach of

the contract.

14. Best Endeavors: Do everything within the power, irrespective of the

effort or expense involved.

15.Conditional obligations: An obligation the performance of which is

excused if a certain event occurs.

Multiple Choices

21. _______ is a specific amount of money in the clause of a contract

to be paid as damages in the event of future default or breach of contract.

A. Compensatory damage

B. Consequential damage

C. Nominal damage

D. Liquidated damage

22. A business enterprise that is directly or indirectly owned or

controlled by another entity is called _______.

A. affiliated company

B. holding company

C. limited liability company

D. parent company

23. ________ is a type of business entity that is owned and run by one

individual and in which there is no legal distinction between the owner and business.

A. Limited company

B. Partnership company

C. Sole Trader

D. Holding company

24. _______ is a remedy whereby a contract is canceled and the

parties are restored to the original positions that they occupied prior to the transactions.

A. Specific performance

B. Damage

C. Restitution

D. Rescission

25. _______ is a person or entity that is not a party to a contract but

that will benefit from a contract made between other parties.

A. offeror

B. offeree

C. Agent

D. Beneficiary

26. An offer will be valid, when ______.

A. The offeror must communicate an intention to be bound.

B. The offeree must have accepted the offer.

C. The proposal must be definite.

D. The proposal must be addressed to one or more specific persons.

27. Which of the following statements is an acceptance?

A. “ I accept the offer, but I wish I could have gotten a better price.”

B. “ I accept, but can you shave your price.”