Learning business English contract vocabulary will boost your negotiating power and help you with legal issues. Learn these 20 contract-related English words today!
Definition
If you're doing business, it's important to have a good understanding of the vocabulary surrounding contracts. This will ensure that you know what you're agreeing to, and can avoid any confusion or misunderstanding down the line.
Elements
Here are some key terms to know:
1. Offer: This is when one party makes an offer to another party. The offer can be for goods, services, or anything else of value.
2. Acceptance: This is when the party receiving the offer agrees to it. This can be done verbally, in writing, or by performing an act (such as starting to provide the goods or services).
3. Consideration: This is something of value that is exchanged by the parties. For example, if one party is offering to provide goods or services, the other party will usually provide some form of payment in return.
4. Breach of contract: This occurs when one party fails to uphold their end of the agreement. This can happen if they don't provide the promised goods or services, or if they don't pay the agreed-upon consideration.
5. Remedies: These are the actions that can be taken if there is a breach of contract. For example, one party may be entitled to damages (compensation for losses) or specific performance (an order from the court to the breaching party to fulfill their obligations).
Conclusion
Contracts are widely used nowadays. Do we actually read them before signing, though? Due to the peculiar English used in contracts, most people, including fluent English speakers, avoid reading them. Understanding this vocabulary will help you navigate the world of contracts and ensure that you're always clear on what you're agreeing to.
