CMA Foundation Paper 1 (FBLC) flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Void agreement

An agreement not enforceable by law from the outset, for example one without consideration or between parties lacking capacity; it creates no legal rights or obligations for either party.

Voidable contract

A contract enforceable at the option of the aggrieved party because consent was obtained by coercion, undue influence, fraud, misrepresentation, or mistake; it remains valid until rescinded.

Valid acceptance essentials

Acceptance must be absolute and unqualified, communicated by the offeree, made in the prescribed or reasonable mode, and given while the offer remains open; silence is generally not acceptance.

Counter-offer effect

A counter-offer rejects and destroys the original offer, so the original offer can no longer be accepted; a mere inquiry for information does not have this effect.

Consideration

Something of value given at the desire of the promisor in return for the promise; it may be past, present, or future, must be real and lawful, and must not be illusory.

Minor's agreement

An agreement with a minor is void ab initio, but a minor can be a beneficiary and may enforce a contract for their benefit; necessaries supplied to a minor bind the minor's estate.

Undue influence

Consent obtained by one party dominating the will of another through a relationship of trust or authority, making the contract voidable at the option of the influenced party.

Coercion

Committing or threatening an act forbidden by law, or unlawful detention of property, to induce consent; the contract is voidable and the victim may recover benefits given.

Fraud elements

A false statement made knowingly, without belief in its truth, or recklessly, with intent to deceive and induce the other party to act; consent so obtained is voidable.

Bilateral mistake

A mistake by both parties on a matter of fact essential to the agreement, such as the identity or existence of the subject matter, makes the agreement void.

Contingent contract

A contract to do or not do something on the happening of a collateral event that is uncertain; the promisor is liable only when the event occurs, unless performance is prevented.

Quasi-contract

An obligation imposed by law without agreement to prevent unjust enrichment, covering necessaries supplied, payment by mistake or coercion, non-gratuitous acts, and finder of goods.

Sale versus agreement to sell

In a sale, ownership and risk pass immediately; in an agreement to sell, ownership passes on a future event or condition, and risk generally remains with the seller.

Conditions and warranties

A condition is a stipulation essential to the main purpose of the contract and its breach allows repudiation; a warranty is collateral and its breach gives damages only.

Consumer rights

Rights to safety, information, choice, be heard, seek redressal, and consumer education; misleading advertisements and unfair trade practices are actionable before consumer forums.

Communication process

Sender encodes a message and transmits it through a channel; the receiver decodes it and responds with feedback, while noise may distort the message at any stage.

Seven Cs

Principles of effective business writing: clear, concise, concrete, correct, coherent, complete, and courteous; each improves comprehension and reduces the need for clarification.

Grapevine

An informal communication network that spreads information rapidly through personal contacts; it can carry accurate news but also rumour and distortion, so managers should monitor it.

Downward communication

Messages flowing from superiors to subordinates, such as instructions, policies, and feedback; long chains and status differences can distort or filter the message.

Upward communication

Messages flowing from subordinates to superiors, such as reports, suggestions, and grievances; fear of consequences and filtering often reduce its accuracy.

Semantic barrier

Interference caused by word meanings, jargon, ambiguity, or poor translation; remedy by using simple language, defining terms, and confirming understanding through feedback.

Physical barrier

Interference from noise, distance, faulty equipment, or poor timing; remedy by choosing a suitable channel, reducing noise, and repeating key messages.

Active listening

A deliberate process of receiving, interpreting, evaluating, and responding to a message, using paraphrasing and clarifying questions to confirm the speaker's meaning.

Business letter layout

Standard sequence: sender's address, date, inside address, salutation, subject line, body, complimentary close, signature, and enclosures where applicable.

Memorandum

An internal written message with a fixed header of To, From, Date, and Subject, no salutation, and a concise body; it records decisions and circulates information within an organisation.

Circular

A single written communication sent simultaneously to many recipients, such as staff or customers, conveying a policy change, notice, or announcement from one source.

Minutes of meeting

An official record of proceedings stating date, attendees, agenda items, decisions, and action points; they serve as evidence and a reference for future action.

Report structure

A formal report typically contains title, terms of reference, procedure, findings, conclusions, and recommendations; findings state facts while recommendations propose action.

Kinesics

Non-verbal communication through body movement, gestures, posture, and facial expression; it often reveals attitude and must be consistent with the spoken words.

Proxemics

The study of how physical distance and space in communication affect meaning; intimate, personal, social, and public zones differ across cultures and contexts.

Paralanguage

Vocal cues accompanying speech, such as pitch, tone, volume, pace, and pauses; they modify meaning and can contradict the literal content of the words used.

Communication network types

Formal patterns include chain, wheel, and circle; the wheel is fast and accurate for simple tasks, while the circle suits complex tasks and member satisfaction.