incorporation – inclusion
indemnity – repayment of necessary expenses
injunction – an order to stop some event
innominate term – a term which cannot easily be labelled as a condition or a
warranty
inter absentes – at a distance (not in each other’s presence)
inter praesentes – in each other’s presence, or face to face
judiciary – a body of judges
legislation – a body of statute law
liable – responsibility
liability – legal duty or responsibility
limitation clause – a clause limiting a party’s obligations under a contract
liquidated damages – an agreement to pay a reasonable agreed sum on
breach
mediation – where someone tries to obtain agreement between parties as an
alternative to court
minor – a person under 18 (now to be referred to as a child)
misrepresentation – a misleading claim which leads a person into a contract
mistake – a false assumption in forming a contract
mitigate – to take reasonable steps to offset any loss
mutual mistake – (cross-purpose mistake) where two parties make different
false assumptions
necessary – an item without which a person cannot reasonably exist and
suited to their way of life
non est factum – literally ‘this is not my deed’ (a claim that a contract was
signed in ignorance)
objective – a view which is not personal opinion
offer – an expression of willingness to contract on certain terms with serious
legal intent
parol evidence rule – the rule that a written contract cannot be changed by
oral evidence
party – a person, group or organisation who forms one ‘side’ of a contract
penalty clause – an agreement in a contract to pay money (usually a large
amount) if there is a breach
plaintiff – a person bringing a civil claim to court (now called the claimant)
policy – a principle view of what the law should be
precedent – a ruling from case law which binds other cases
prima facie – at first sight
privity – the relationship between the two parties to a contract
prosecution – a person bringing a criminal case to court
quantum meruit – literally ‘as much as is deserved’ – payment for the
amount of work done330 Contract lawCHAR_Z02.QXD 14/9/07 10:01 Page 330