Basic Contract Law for Paralegals Chapters 1-8 Questions with Verified Answers| Updated

Basic Contract Law for Paralegals Chapters 1-8 Questions with Verified Answers| Updated Legality The condition of conformity with the law; lawfulness. Usury Charging a rate of interest that exceeds the rate permitted by law. Surrogacy Contract A situation where a woman who "hosts" the fertilized egg of another woman in her womb or who is artificially inseminated with the sperm of a man who is in a relationship with someone else agrees to assign her parental rights to the donors. Prenuptial Agreement An agreement between two independent individuals prior to marriage that sets forth the terms and conditions of the division of property, in the event of a divorce. Covenant Not to Compete (Restrictive Covenant) A provision in a contract that restricts a party's ability to compete. These often arise in employment or business contracts. Exculpatory Clause A clause in a contract or other legal document excusing a party from liability for a wrongful act.