Explanations of some common legal terms associated with contracts.

Breach

When someone doesn't fulfil their part of the contract.

Damages

Money paid over to compensate for a breach of contract. For "special" damages, you have to prove the exact amount the breach cost you. "General" damages cover things that can't measured, such as distress, humiliation and inconvenience.

Frustration

This is when the contract can't be carried out because of circumstances beyond everyone's control. Say, for example, you hire the local church hall for your wedding but it's struck by lightning and burns down. If that happens, you don't have to pay but you can't sue the church for damages.

Postal acceptance rule

If you write a letter accepting an offer, the contract applies as soon as you put the letter in the post. The only exceptions are if you were specifically asked to accept in some other way, or if posting a letter is unreasonable in the circumstances. If you accept by fax, there's no contract until the fax reaches its intended destination. The legal situation with e-mail is still unclear.

Specific performance

This is the term for a court order telling you to follow the terms of the contract.