Tag: contract
European option vs American option
A European option is a type of options contract that can only be exercised on the expiration date. An American option, on the other...
Aleatory Contract
What is an Aleatory Contract
An aleatory contract is a type of agreement in which one or more of the parties agrees to perform an...
Per stirpes
What is per stirpes and how does it work
Per stirpes is a legal term that refers to the distribution of assets in an estate....
Repudiation
What is repudiation
Repudiation most commonly refers to the act of rejecting or disavowing something. In the legal world, it is often used in reference...
Keepwell Agreement
What is a Keepwell Agreement
A Keepwell Agreement is a contract between a parent company and its subsidiary stating that the subsidiary will not be...
Knock-Out Option
What is a 'Knock-Out Option' A knock-out option is an option with a built-in mechanism to expire worthless if a specified price...
Heads Of Agreement
What is 'Heads Of Agreement' A non-binding document outlining the main issues relevant to a tentative partnership agreement. Heads of agreement represents...
Years Certain Annuity
What is 'Years Certain Annuity' An insurance product that pays the holder a monthly income for a specified number of years. A...
Yearly Renewable Group Term Insurance
What is 'Yearly Renewable Group Term Insurance ' A type of insurance policy purchased by employers to cover several people at a...
Illiquid Option
What is 'Illiquid Option' An option contract that cannot be sold for cash quickly at the prevailing market price. Illiquid options have...