Contract and legal vocabulary turns up in TOEIC readings about agreements, policies, and company rules. Learn the meaning, see it in a sentence, then test yourself.
The words
contract noun A written agreement that both sides must follow.Both companies signed the contract last Friday. agreement noun An arrangement that two sides accept.The two firms reached an agreement after weeks of talks. obligation noun Something you are required to do.Meeting the deadline is a contractual obligation for every supplier. signature noun Your name written by you to show you agree.The form is not valid without your signature. compliance noun The act of following rules or requirements.The audit confirmed full compliance with local regulations. dispute noun A disagreement between two sides.The dispute over payment was settled out of court. negotiate verb To discuss something in order to reach an agreement.The two sides met for hours to negotiate a fair price. terminate verb To end something officially.Either side may terminate the contract with thirty days' notice. approve verb To officially agree to something.The manager has to approve every expense report before payment. prohibit verb To officially forbid something.Local rules prohibit smoking anywhere inside the building. confidential adjective Meant to be kept secret.All salary information is confidential. mandatory adjective Required by a rule or a law.Safety training is mandatory for all new staff.
Memory trick
terminate vs cancel : you terminate an agreement that is already running, but you cancel something that was only scheduled. TOEIC almost never uses terminate for a meeting.
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A written agreement that both sides must follow Both companies signed the contract last Friday.
An arrangement that two sides accept The two firms reached an agreement after weeks of talks.
Something you are required to do Meeting the deadline is a contractual obligation for every supplier.
Your name written by you to show you agree The form is not valid without your signature.
The act of following rules or requirements The audit confirmed full compliance with local regulations.
A disagreement between two sides The dispute over payment was settled out of court.
To discuss something in order to reach an agreement The two sides met for hours to negotiate a fair price.
To end something officially Either side may terminate the contract with thirty days' notice.
To officially agree to something The manager has to approve every expense report before payment.
To officially forbid something Local rules prohibit smoking anywhere inside the building.
Meant to be kept secret All salary information is confidential.
Required by a rule or a law Safety training is mandatory for all new staff.
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