Terms Definitions Not legally binding agreement because an essential ingredient is missing. There is no contract. There is a contract but one of the parties has the option to end it. A binding contract or other obligation that the courts will not enforce, such as a contract that does not satisfy the Statute of Frauds. A written commitment whereby a guarantor agrees to pay a debt if the debtor doesn't. A term in a contract where one party tries to limit or eliminate obligations that would otherwise be present