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Vocabulary --> General Business --> Contracts --> Word to learn


Study the following definitions and examples.

 

1.       abide by v., to comply with; to conform

a. The two parties agreed to abide by the judge's decision.

b. For years he has abided by a commitment to annual employee raises.

 

2.       agreement n., a mutual arrangement, a contract

a. The landlord and tenant were in agreement that the rent should be prorated to the middle of the month.

b. According to the agreement, the caterer will also supply the flowers for the event.

 

3.       assurance n., a guarantee; confidence

a. The sales associate gave his assurance that the missing keyboard would be replaced the next day.

b. Her self-assurance made it easy to see why she was in charge of the negotiations.

 

4.       cancellation n., annulment; stopping

a. The cancellation of her flight caused her problems for the rest of the week.

b. The cancellation clause appears at the back of the contract.

 

5.       determine v., to find out; to influence

a. After reading the contract, I was still unable to determine if our company was liable for back wages.

b. The skill of the union bargainers will determine whether the automotive plant will open next week.

 

6.       engage v., participate; involve

a. Before engaging in a new business, it is important to do thorough research.

b. He engaged us in a fascinating discussion about current business law.

 

7.       establish v., to institute permanently; to bring about

a. Through her many books and interviews, Dr. Wan established herself as an authority on conflict resolution.

b. The merger of the two companies established a powerful new corporation.

 

8.       obligate v., to bind legally or morally

a. The contractor was obligated by the contract to work 40 hours a week.

b. I felt obligated to finish the project even though I could have exercised my option to quit.

 

9.       party n., a person or group participating in an action or plan; the persons or sides concerned in a legal matter

a. The parties agreed to a settlement in their contract dispute.

b. The party that prepares the contract has a distinct advantage.

 

10.     provision n., a measure taken beforehand; a stipulation

a. The father made provisions for his children through his will.

b. The contract contains a provision to deal with how payments are made if John loses his job.

 

11.     resolve v., to deal with successfully; to declare; n., conviction

a. The mediator was able to resolve the problem to everyone's satisfaction.

b. The businessman resolved to clean out all the files by the end of the week.

 

12.     specific adj., particular

a. The customer's specific complaint was not addressed in his e-mail.

b. In a contract, one specific word can change the meaning dramatically.

 

 
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