commercial transactions

Definition

A rule that governs the extent to which parties to a case may introduce into court evidence of a prior or contemporaneous agreement in order to modify, explain, or supplement the contract at issue.

Definition

A crime involving writing a check on an account, Account A, with insufficient funds and depositing it in another account, Account B, and then writing a check on Account B and depositing it in Account A to cover the first check written on Account A. Kiting takes advantage of the time it takes banks to clear checks.

 The person who makes a Draft, directing the drawee (i.e., the Bank) to pay the specified sum to a third party (the payee).

A person who cosigns a check, draft or other negotiable instrument with another person or persons.  Each comaker has a legal obligation to pay the entire amount due on the instrument, should one of the parties default. 

Definition

An insurance agreement to pay for freight that has been lost or damaged in transit, whether by land, air, or sea.

Definition

Of or relating to transactions between two parties who are independent and do not have a close relationship with each other. Presumably, these parties have equal bargaining power and are not subject to undue pressure or influence from the other party.

Definition

A standard form contract drafted by one party (usually a business with stronger bargaining power) and signed by the weaker party (usually a consumer in need of goods or services), who must adhere to the contract and therefore does not have the power to negotiate or modify the terms of the contract. Adhesion contracts are commonly used for matters involving insurance, leases, deeds, mortgages, automobile purchases, and other forms of consumer credit.

See also

• Acceptance

Definition

A clause frequently included in bilateral investment treaties ("BITs") which provides that a host state shall treat all of its trading partners equally. Under such a clause, if the host state lowers a tariff for one trading partner, it must lower it for all trading partners.

In sales law, goods that meet the specifications of the sales contract.

See UCC § 2A-103.