Definitions of terms
Unenforceable contract : contract for the breach of which neither the remedy of damages nor the remedy of specific performance is available;
Bilateral contract or synallagmatic contract: a contract in which the parties have reciprocal obligations;
Unilateral contract: a contract whereby the beneficiary does‟t have any obligation;
Repudiation of contract: informing the other party in advance that the contractual obligations will not be performed;
Performance: fulfillment of contractual obligations;
Usage: habitual or customary practice;
Usage of trade: habitual or customary practice in a given place and period of time, in a given trade such that its observation is expected with respect to a particular agreement;
Offer: a manifestation of willingness to enter into the contract with another party, made in a manner convincing that party that his/her consent will lead to the formation of the contract;
Clause of a promise or agreement: portion thereof which relates to a particular matter;
Clause of a contract: a portion of the legal relations arising from the promise or set of promises which relates to a particular matter;
Promise: a manifestation by the promisor of an intention to offer, to act or to refrain from acting, that thereby gives the promisee reasonable grounds to believe the promisor is making a commitment to offer, to act or to refrain from acting;
Promisor: a person or entity manifesting the intention to offer, to act or refrain from acting;
Promisee: a person or entity to whom the promise is made;
Third party beneficiary: a person other than the promisee who would benefit from the performance of the promise;
Threat: harassment, violence or any other an act that impedes the free will of a party to a contract, whereby no alternative other than accepting the terms of the contract;
Debtor: a person with the duty to perform a contractual obligation;
Creditor: a person to whom a contractual obligation is owed;
Mistake: a belief that is not in accordance with the facts.
Classification of contracts
Contracts can be classified into the following categories:
1 bilateral or synallagmatic contract and unilateral contract;
2 explicit contract and implicit contract;
3 Contract liable to annulment and unenforceable contract;
4 valid contract and void contract;
5 formal contract;
6 gratuitous contract.
