APF Chapter 4 Vocabulary

When a person accepts the terms of an offer.

• Acceptance
• Variable Expenses
• Disposable Income
• Cosigner

Items of value that a person owns.

• Capacity
• Warranty
• Negotiable
• Assets

A spending and saving plan based on your expected income and expenses.

• Counteroffer
• Budget
• Disposable Income
• Net Worth

1. The competence (legal ability) of parties to enter into a contract. 2. The financial ability to repay a loan with present income.

• Capacity
• Financial Plan
• Negotiable
• Consideration

When estimated expenses are greater than estimated income.

• Financial Plan
• Counteroffer
• Cash Deficit
• Wealth

When estimated income is greater than estimated expenses.

• Notarized
• Fixed Expenses
• Cash Surplus
• Liabilities

Something of value exchanged for something else of value.

• Budget
• Consideration
• Capacity
• Contract

A legally enforceable agreement between two or more people.

• Cash Deficit
• Assets
• Budget
• Contract

A person who promises to pay the debt of another person.

• Statute of Frauds
• Cosigner
• Cash Surplus
• Acceptance

A new offer that changes the original offer.

• Acceptance
• Counteroffer
• Net Worth
• Assets