Answer Key

Vocabulary test

Drag & drop: Fill in the missing expression. Use the following words and phrases:
  • validity
  • performance
  • obligation
  • extension
  • breach
  • renew
  • damages
  • capacity
  • terms
  • oral agreement
  1. In many states, an  [oral agreement] is considered to be as binding as a more formal written document.
  2. A lease agreement is a good example of a contract that often offers the possibility to [renew] the contract under the same terms as the original.
  3. Failure to do any of the following will be considered to be a  [breach] of contract.
  4. In most countries, there are strict laws governing the  [capacity] of children and the mentally handicapped to sign contracts.
  5. If both parties are pleased with the agreement after one year, there is the option to agree to a six-month  [extension] of the contract.
  6. According to this contract, your legal  [obligation] ends at the moment that you deliver the goods – you are not responsible for them after that.
  7. For your side,  [performance] includes supply and delivery of the goods, as well as arranging all necessary import and export permits.
  8. Claiming breach of contract, Microsoft is seeking 27 million dollars in  [damages] from one of their suppliers who failed to deliver materials at the agreed upon time.
  9. The  [validity] of this agreement extends from the date of signature to January 1 of the next year.
  10. I would like to discuss some of the  [terms] of this contract which I find unclear, specifically the clauses covering default and damages.