Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

CONTRACT THEORY

Depending on the assumption that deals exist to define the anticipations of the primary while offering a clear explanation of how an agent would benefit provided the expectations are met and contains

CONTRACT UNDER-RUN

Surplus of the actual deal price over the concluding price of a deal (includes remedial work and allowed changes).

CONTRACT UNIT

The amount of the fundamental asset presented through a derivatives deal. For example, the unit of a fold contract signifies 100 ounces of gold. Also known as Trading Unit.

CONTRACT YEAR

Contract year is the amount of time between the effective date and the expiration date.

CONTRACTEE

Owner of a project (also known as principal or client) or anyone else who gets into a deal with a builder or merchant and gets particular commodities or/and services as per the

CONTRACTING PARTY

Person who gets into a obligatory contract with one (or more) dealing parties and hence accepts the profits and responsibilities provided in it. For a deal to be legit, all dealing parties

CONTRACTIONARY GAP

It is a theory of macro-economy which describes an economy which does not operate at maximum employment equilibrium. The outcome of a gap of contractionary nature is a low degree of GDP

CONTRACTOR’S ALL RISKS INSURANCE

Policy which includes all kinds of risks related to a building project. Usually issued under the combined names of a builder and a client, normally it also contains insurance of public liability.

CONTRACTOR’S OPTION

Stipulation in a deal which provides a contractor with the power to choose certain substances or methods out of a sanctioned list.

CONTRACTUAL INTERMEDIARY

Any entity, like financial institutions which enables a financial agreement between parties. For example, a bank providing mortgage, enabling buying and selling of properties between individuals. The privileges, responsibilities, and remuneration of

CONTRACTUAL PORT OF LOADING

Not a genuine port for loading but is assumed as such in order to compute haulage charges or/and tariff for inland. Also known as commercial port of loading.

CONTRARIAN

An investor or a plunger who does not act as per conventional wisdom: the person is a pessimist in comparison, to others who are optimist or vice versa. Contrarian ideology is established

CONTRAST ERROR

In a process of performance appraisal or interview, mistakes induced as a result of previously appraised or interviewed participants on the questioner. It creates an alarmed or unalarmed comparing of one participant

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