Georgia Business Litigation Terms: Part 3: Contract Terms
Georgia Business Litigation: Definitions of Common Terms associated with Business Law and Litigation:
Acceptance: Compliance with or agreement to the terms and conditions of an offer constitute acceptance of the offer. Acceptance is a necessary element to the formation of a contract.
Breach of Contract: Failure to perform any promise in a contract for which no legal excuse exists.
Consideration: Something of value in the eyes of the law moving from one party to a contract to the other party to the contract. It can be in the form of a benefit to one party or detriment to the other party. Consideration is a necessary element to the formation of a contract.
Contract: An agreement entered into between two or more parties that creates, modifies or destroys a legal relationship.
Dissolution: The legal termination of a contractual relationship, i.e. dissolution of a partnership.
Offer: The initial element of forming a contract where one party to a potential contract proposes definite terms for acceptance or rejection to another person or entity.
Rescission: Annulling or unmaking a contract and placing the parties to the contract in the possession they were in before the existence of the contract.
Void: A void contract is a contract that creates no legal rights and, therefore, neither party to the contract is required to honor any contractual provisions and neither party to the contract can enforce any contract provisions.
Voidable: A contract that, under certain circumstances, may be rescinded at the option of a party to the contract.
