10 Important Legal Terms & Phrases That We Commonly Use Under Contract Law
Updated: Jul 30
1. Reciprocal promise
The state of being dedicated to a cause or activity by one party to another to carry out or stop him/her from carrying a specified act which forms the payment or money or a part of payment or money for each other are called reciprocal promise.
A remedy is a method with which a court of law causes a right to happen by necessity or force, an unwelcome decision, or ruling on someone by way of punishment or makes another court order by force on its will.
An act of refusing to perform the responsibility or an act to which a person is morally or legally bound as repay in a return for something that received by the other party.
Rescission is the undo or to be undone after a twisting movement of an instance of buying or selling something. This is done to bring parties, as far as possible, back to the position in which they were before they entered a contract.
5. Rights and duties of a bailee
It is the duty of the bailee that he should take as much care of the goods as a man of ordinary prudence takes care of his own goods. Any act of the bailee should not be against the conditions of the contract. Otherwise, the contract will be voidable at the option of the bailor. It is the duty of the bailee that he should keep the bailor goods separate from his own goods. If he mixed without the consent of the bailor then he himself will bear the expenses of separation and loss. It is the duty of the bailee that he should not deny or change the title of the bailor about the ownership of goods. It is the duty of the bailee to return or deliver the goods bailed according to the bailors' conditions. It is the duty of the bailee that he should return the goods bailed as the time or purpose of bailment completes without the demand of the bailor. It is also the duty of the bailee that he should deliver the profit or any increase that occurred in the bailed goods to the bailor. It is the duty of the bailee that he should use the goods according to the conditions of the contract. If he misuses the goods then he will compensate for the loss to the bailor. If the bailee suffers a loss or damage due to the defects of the bailed goods he has a right to recover it from the bailor. It is the right of the bailee that he should receive compensation from the bailor for any loss which he has suffered due to defects in the title of the bailor. All the expenses incurred for the bailment may be recovered by the bailee from the bailor.
6. Rights and duties of a bailor
It is the basic duty of the bailor that he should disclose all the defects of the goods before delivering to the bailee. If the bailor does not disclose then he himself will be responsible for the loss. If a bailor feels that bailee is showing carelessness and goods are in danger. He should give a warning to the bailee.
It is the duty of the bailor that he should also pay the necessary expenses sustained by the bailee connection with the bailment.
As the purpose of bailment completes bailor has a right to take back the goods bailed. If bailee fails to return then bailor has a right to claim for compensation.
With the consent of the bailee, the bailor may return his goods before the specified period.
The contract of the bailment can be terminated by the bailor if the goods bailed are misused or against the conditions of the contract.
The bailor has the right to get profit from the goods bailed according to the conditions of the contract.
7. Rights and duties of pawnee
Pawnee can retain the goods pledged until his dues are paid. He has also the right to retain the pledged goods for other debts taken.
He has also the right to recover the other charges like the preservation of the pledged goods.
If pawnor fails to make payment then pawnee can sell the pledged goods after issuing the reasonable notice.
On the receipt of his dues, he should return the goods. He must do the reasonable care of the pledges' goods.
He should abide by the terms. He should not make unauthorized use of the pledged goods. He should not mix the pledged goods with his own goods beard by the pawnee.
8. Rights and duties of pawnor
A pawnor has a right of redemption after depositing the dues. If pawnee makes an unauthorized sale the pawnor has the right to file a suit against the pawnee. The pawnor can enforce the pawnee to do proper care and maintain the pledged goods.
Pawnor must meet the obligations regarding the contract within a specified time. He should also pay extraordinary charges.
9. Service contract
A negotiated and typically legally binding arrangement between parties as to a course of action whereby a person or firm that undertakes a contract to provide materials or labor to perform a service or do a job supplies time, effort and an expert skill or knowledge in a particular field instead of a product which is able to seen or noticed by touch.
10. Soundness of mind
A person is said to be of sound mind for the purpose of making a contract, if, at the time when he makes it, he is capable of understanding it and of forming a based on or in accordance with reason or logic.judgment as to its effect upon his interests. A person is said to be of sound mind for the purpose of making a contract, if, at the time when he makes it, he is capable of understanding it and of forming a based on or in accordance with reason or logic judgment as to its effect upon his interests. A person who is usually of unsound mind, but occasionally of sound mind, may make a contract when he is of sound mind. A person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when he is of unsound mind.
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