Contract Law: DEFINITIONS

Question	Answer
Offer	An offer is a statement of terms which the person making the offer is willing to enter a contract; it can be written or verbal.
Invitation to Treat (ITT)	An indication of a willingness to start negotiations and is not an offer.
Acceptance	The final expression of agreement (assent) to terms of an offer.
Commercial	Generally where one of the parties is a business.
Domestic	Generally, where the parties are friends or family.
Presumption	What the law will automatically think, unless there is a valid rebuttal.
Rebuttal	A reason why the presumption would not be fair or valid.
Deed	A formal written and witnessed document.
Consideration	Each party will give something of value.
Actual Breach	When one of the terms is either not completed or is not properly completed.
Anticipatory Breach	Where one of the parties states or indicates that they will not perform their part of the contract.
Condition	Is a term of the contract and if not performed it will go to the heart of the contract.
Warranty	Minor term of the contract and if it isn't performed it will cause loss but does not go to the heart of the contract.
Loss of the Bargain	This is the money awarded to replace the costs incurred in entering the contract in the first place.
Consequential Losses	This is the money awarded to make up for the costs incurred as a result of the breach of contract.

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