commercial activities

Covenant of Quiet Enjoyment

Definition

A formal agreement, typically in a deed or lease, in which a seller or lessor promises to protect a buyer or lessee in the event of a disturbance of his or right to quiet enjoyment of the property he or she is buying or leasing. A covenant of quiet enjoyment in

Counteroffer

The rejection of an offer to enter into a contract that simultaneously makes a different offer, changing the terms of the original offer in some way. For example, if a buyer offers $5000 for a used car, and the seller replies that he wants $5500, the seller has rejected the buyer's offer of $5000 and has made a counteroffer to sell at $5500. The legal significance of a counteroffer is that it completely voids the original offer.

Cosigner

A person who signs his or her name to a loan agreement, lease, or credit application. If the primary debtor does not pay, the cosigner is fully responsible for the loan or debt. Many people use cosigners to qualify for a loan or credit card. Landlords may require a cosigner when renting to a student or someone with a poor credit history.

Cooling-off Rule

A rule that allows you to cancel a contract within a specified time period (typically three days) after signing it. Federal cooling-off rules apply this three-day grace period to sales made anywhere other than a seller's normal place of business. Various states have cooling-off rules that sometimes apply even longer cancelation periods to specific types of sales, such as dancing lessons and timeshares.

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