contracts

Account Stated

Definition

A statement between a creditor and a debtor that settles the total amount of debt owed to the creditor.

There are three elements of an account stated: (1) There exists prior transactions between the parties, creating a creditor-debtor...

Accounts Payable

Definition

Short-term debt that a company owes to its suppliers for products received before payment is made. Accounts payable entries are listed under "Current Liabilities" in the business' balance sheet and the items are removed once the account has...

Accounts Receivable

Definition

Money owed to a business by another business or individual in exchange for property or services that were provided on credit. The settlement of an account receivable begins by sending an invoice to the customer. A company enters accounts...

Accrue

1. To be added as a matter of periodic gain or advantage, as interest on money.

2. To become a present and enforceable right or demand.

From: Dictionary.com

Act of God

At common law, an overwhelming event caused exclusively by natural forces whose effects could not possibly be prevented (e.g., flood, earthquake, tornado). In modern jurisdictions, "act of God" is often broadened by statute to include all natural...

Act of Nature

See: Act of God

Actual Damages

Overview

In tort law, actual damages is a type of damages which refers to compensation awarded by a court in response to a loss suffered by a party.

The Supreme Court held in Birsdall v. Coolidge, 93 U.S. 64 (1876) that the phrases "compensatory...

Addendum

An attachment or exhibit to a document, such as a contract. For example, a contract to manufacture widgets may have an adendum listing the specifications for said widgets. As this modifies the original document, it should be signed or executed with...

Adhesion Contract

A standard-form contract drafted by one party and signed by another in a weaker position. The signing party is typically a consumer with little commercial leverage, and must either reject the deal or accept it with little chance to influence the terms...

Adhesion Contract (Contract of Adhesion)

Overview

An adhesion contract (also called a "standard form contract" or a "boilerplate contract") is a contract drafted by one party (usually a business with stronger bargaining power) and signed by another party (usually one with weaker...

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