Test yourself

Fill in the gaps with the correct word. You can write one word or a phrasal verb.

1.  When the parties end the contract before the agreed date they (1 p.) or (1 p.) the contract.

2.  When a party wishes to end the contract before the agreed date it must give (1 p.) to the other party or parties.

3.  The period of time that the parties must continue the contract after they have said that they are ending it, or after they have been informed that the other party is ending the contract is known as (1 p.) period.

4.  When a business goes into liquidation, we formally say that it (1 p.) trading, i.e. ends.

5.  The parties may end the contract earlier than it was agreed when one of the parties commits a (1 p.) breach, i.e. serious or significant.

6.  When a party to contract may choose what to do, e.g. whether to replace or refund a defective product, it may do it at its (own) (1 p.) .

7.  When a business is not able to pay its debts, the business is (1 p.) . In the UK this word is only used to talk about businesses. To describe a person who cannot pay their debts, the word (1 p.) is used.

8.  When you borrow money you (1 p.) a debt and become a(n) (1 p.) .

9.  Financial compensation courts may award to an injured party is known as (1 p.) .

10.  When you are a legal owner of certain goods you have a title (1 p.) these goods, or you have ownership (1 p.) these goods, or you have property (1 p.) these goods.

11.  A (1 p.) of title clause (ROT) protects a seller from the pitfall of a buyer who does not pay for the goods.

12.  All (1 p.) clause provides that the buyer must pay the whole sum for goods if they want the title to the goods pass on them from the seller.