Vocabulary
Study the following vocabulary.
Contracts
oral agreement – an agreement made on a verbal basis, as opposed to a written and signed contract
obligation – a legal requirement to do something
performance – specific actions required by a contract
terms – conditions offered, asked or demanded of the parties in a contractual relationship, terms serve as guidelines or rules
breach – violation of terms of the contract, or failure to fulfill any obligations of the contract
capacity – the maximum number or amount of something that can be produced by a given plant, company, etc.
validity – the period of a contract's effect, or the beginning of this period
damages – financial compensation given to one party as compensation for another party's breach of contract
extension – to prolong the validity and effect of an existing contract
renew – to resign the same or similar contract for a period similar to the original period of validity