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passenger People being legally transported. (p. 378)past consideration Consideration that took place inthe past or that is given for something that hasalready been done. (p. 177)patent Gives an inventor the exclusive rights to make,use, or sell an invention for 17 years. (p. 365)payee Person to whom a maker agrees to make monetarypayment. (p. 507)pension plan Retirement plan established by anemployer or a union that is designed to provideincome to employees after they retire.(pp. 456, 773)performance The parties fulfill the terms of the contractby doing what they had earlier promised.(p. 224)periodic tenancy The right to occupy from year toyear, month to month, or week to week; a tenancythat continues for successive fixed periods. (p. 713)perjury Making a false statement under oath. (p. 207)personal defenses Negotiable instrument defensesthat can be used against a holder, but cannot beused against a holder in due course. (p. 563)personal property Anything that can be owned otherthan real estate. (p. 362)plaintiff The party that accuses a person of a crime.(p. 56)policy Written contract between a person buyinginsurance and the insurance company; states exactlywhat losses will be compensated for, and theamount of compensation. (p. 752)policyholder Individual or group of people who havepurchased insurance. (p. 752)polygamy Act of having more than two spouses atone time. (p. 680)pooling agreement A contract to vote in a certainway on a particular issue. (p. 631)portability Ability to transfer pension benefits fromone job to another. (p. 776)precedent A judge is required to follow an earliercourt decision when deciding a case with similarcircumstances. Also called the doctrine of staredecisis. (p. 17)preexisting duties An existing legal obligation to dosomething. (p. 177)preferred stock Stocks issued by a corporation toowners who have no voting rights but who have theright to receive a fixed dividend. (p. 614)premarital agreement Agreement made betweenprospective spouses in contemplation of marriagethat becomes effective upon marriage. It must be inwriting and signed by both parties and usually pertainsto the rights and obligations of each of theparties with regard to any of the property of eitheror both. (p. 677)premium Amount of money paid to an insurancecompany for insurance coverage. (p. 754)presentment Demand made by a holder to pay oraccept an instrument. (p. 569)price Set amount of money that is to be paid forgoods. (p. 268)price fixing Occurs when competitors agree on certainprice ranges within which they set their prices.(p. 197)primary liability The absolute liability to pay.(p. 568)principal Person who is represented by an agency inthe negotiations of business deals, and the entryinto contracts. The principal is normally legallybound by those agreements. (p. 392)privacy contract Contracting directly with anotherperson. (p. 306)privity of contract Determines who can sue whomover a question of performance required by a contract.(p. 248)product liability law Manufacturers, sellers, and suppliersof goods can be held responsible if a productproves to be unsafe and someone is injured.(p. 327)promissory Containing or consisting of a promise.(p. 175)promissory estoppel Principle that bars a party fromtaking back certain types of promises, such ascharitable subscriptions, on which another partyrelies. (p. 175)promoter Person who carries out the incorporationprocess by taking the initial steps to organize andfinance a business. (p. 608)property damage liability insurance Insurance thatapplies when a person damages the property of others,including such things as another car, a house, atelephone pole, or a tree. (p. 353)property insurance Contract in which the insurerpromises, for a stated premium, to pay a sum ofmoney if a particular piece of real estate is damagedor destroyed. (p. 762)826 Glossary