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Aabandoned When an emancipated minor gives up theprotection afforded to them as minors. (p. 148)abandoned property Property that has been discardedby the owner without the intent to reclaimownership. (p. 363)acceptance The second party’s unqualified willingnessto go along with the first party’s proposal.(p. 109)acceptor Drawee who has agreed to a draft by acceptingthe written word on a draft and signing his orher name. (p. 509)accord The acceptance by the creditor of less thanwhat has been billed to the debtor. (p. 170)accord and satisfaction Contract is discharged whenone party to an agreement agrees to accept performancefrom the other party that is different fromwhat was agreed upon in the original contract. (p. 230)actual damages Damages directly attributable toanother party’s breach of contract. (p. 251)actual harm The proof that a plaintiff sufferedphysical injuries, property damage, or financialloss. (p. 90)actual notice In terminating an agency relationship,this type of notice is given to third parties when thethird party has given credit to the principal throughthe agent. Notice by certified mail is the best wayto give actual notice. (p. 427)adhesion contract Standard contract used by cardealers. A sentence on the front says that the buyeragrees to terms on the reverse side. The back of theform contains a full page of small-print terms thatfavor the seller. (p. 347)administrative law Rules and procedures that areestablished by regulatory agencies. (p. 21)administrator/administratrix Male or female whois appointed to petition the courts on the behalf ofthose named in the will. (p. 785)adulterated A food or drug that contains any substancethat may make it harmful to the health ofthe consumer; also, a product that contains anysubstance mixed or packed with it to reduce itsquality or strength below the prescribed minimumstandards. (p. 329)adultery Act of having a voluntary sexual relationshipwith someone other than a spouse. (p. 695)adverse possession Title to real property obtained bytaking actual possession of the property openly,notoriously, exclusively, under a claim of right,and continuously for a period of time set by statestatute. (p. 745)affinity Related by marriage. (p. 679)agency by estoppel Agency created when a principalis prevented from claiming that an agent was unauthorized.Such an agency occurs if the principalhas misled a third party into thinking that the agentdid have authority. (p. 405)agency Relationship in which one person representsanother person in some sort of business transactionwith a third party. (p. 392)agent One who represents another person in negotiatingbusiness deals, entering into contracts, and performinga variety of other business tasks for theprincipal. (p. 392)alien Person who is living in this country but owes hisor her allegiance to another country. (p. 157)alimony An allowance or support and maintenancepayment to a divorced person by a former spouse.(p. 702)alternative dispute resolution The process, outsideof the usual system, by which parties may attemptto solve their disputes by using creative settlementtechniques. (p. 34)annual percentage rate (APR) The true interest rateof the loan. (p. 330)annuity Guaranteed retirement that is purchased bypaying either a lump-sum premium or makingperiodic payments to an insurer. (p. 756)annulment Declaration by a court that a marriagewas never effective and was void from thebeginning. (p. 694)answer The defendant’s response to the allegationsfiled by the plaintiff in the complaint. (p. 36)anticipatory breach Parties to a contract notify theother party that they will not go through with thecontract before the time for performance. (p. 250)apparent authority Exists when the principal hassomehow led a third party to believe that a nonagentis an agent, or that an agent has a powerthat he or she does not truly have. (p. 417)appellate courts The United States courts of appeals.(p. 29)814 Glossary