Answer to legal and business English quiz on Interest

Hi all, the answer to last week's quiz is c) accrue. Here is our definition taken from our new book "Drafting Commercial Contracts: Vocabulary Series" available from http://www.legalenglishbooks.co.uk/

To Accrue (verb): This means to incre...ase. It is usually used in relation to interest on debts or money in arrears. For example, BigCo Ltd borrows £40,000 from Small Bank Ltd at an interest rate of 3%. The contract states that BigCo Ltd must pay instalments of £3,000 a month. BigCo Ltd is having financial problems and cannot pay £3,000 every month and so are now in arrears. The contract states that interest will accrue on the amount of money in arrears at a rate of 5%. The amount of money that is in arrears is accruing interest at a higher rate because BigCo Ltd are late with their instalment payments to Small Bank Ltd. Associated Words: To Borrow (verb), Debt (noun), In Arrears (collocation), Interest (noun), Instalments (noun).

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  More legal and business English quizzes coming up :)

Legal and Business English Quiz: Interest

Hello all, legal and business English question time :)  What is the missing word?

My contract with the bank states that “Interest will _________ on the amount of money in arrears at a rate of 6%”.  This means that if I am late with my loan payments to the bank, they will charge extra interest on the amount of money that is late.

a) increase
b) charge
c) accrue
d) add

All answers, shares and comments welcome.  All our study packs are INTERACTIVE and can be used on smartphones, tablet and computers without having to print them out :)  You can save them and come back to them later. Learn more about our interactive study packs at http://www.legalenglishbooks.co.uk

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Answer to last weeks quiz on third party charges

Hi all, the answer to last week's quiz is b) encumbrance.

Encumbrance (noun): This means a burden or restriction. It is commonly used in relation to property. For instance, if Company A wishes to buy a property to use as their offices, then then need to check that the land is free from all encumbrances. Encumbrances can include, third party rights or charges that another party may have over the property.

An easement is a non-possessory right of use of property of another. This is more common with pathways, etc.

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Legal English Quiz: Third Party Rights

Hello everyone, legal English quiz time !

What is the missing word?

An e___________ is a third party right or charge that another party
may have over property or land.

a) easement
b) encumbrance
c) entitlement
d) exclusivity right

All answers, comments and shares welcome as ever :)

Have a lovely Sunday !

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Answer to quiz on commercial contracts

Hi all, the answer to last week's quiz is b) restraint of trade.  Here is our definition from our book "Drafting Commercial Contracts: Vocabulary Series":

Restraint of Trade (noun): This clause deals with the situation when one party tries to limit the business, trade or activity of another. Commercial contracts must be careful if a party wishes to include a restraint of trade clause as it must not conflict with anti-competition law. However, this type of clause is commonly found in employment contracts. Associated Word: Clause (noun).

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Legal English Quiz: Commercial Contract Clause

Legal English quiz time: what is the missing word in this sentence?

If a party tries to limit the business, trade or activity of another, then this clause is called a ________ of trade clause.

a) limitation
b) restraint
c) restriction
d) competition

All answers, shares and comments welcome. Visit us at http://www.legalenglishbooks.co.uk to learn more with our interactive pdfs. You can do the exercises on your computer, tablet or phone !

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Have a lovely weekend all ! :)

Answer to legal English quiz on entering into contracts

Hi all, the answer to last week's quiz is c) capacity to contract. Here is our definition from our book "Drafting Commercial Contracts: Vocabulary Series":


Capacity to Contract (collocation): This phrase means that a party who signs a contract, intended to sign it and understands the terms and conditions that are stated in it. However, if a party does not have capacity to contract then it is not legally binding on that party. Common examples of parties who do not have capacity to contract are minors (children) and people who are mentally impaired or disabled. It is interesting to note that a contract that is in a different language to the party who signs it (and doesn’t understand it) may still be legally bound by the contract. Associated Words: To Bind (verb), Party (noun).


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