diff --git a/bigchaindb/common/exceptions.py b/bigchaindb/common/exceptions.py
index 2e1dc670..72e300fd 100644
--- a/bigchaindb/common/exceptions.py
+++ b/bigchaindb/common/exceptions.py
@@ -69,9 +69,9 @@ class CyclicBlockchainError(Exception):
     """Raised when there is a cycle in the blockchain"""
 
 
-class FulfillmentNotInValidBlock(Exception):
-    """Raised when a transaction depends on an invalid or undecided
-    fulfillment"""
+class TransactionNotInValidBlock(Exception):
+    """Raised when a transfer transaction is attempting to fulfill the
+    conditions of a transaction that is in an invalid or undecided block"""
 
 
 class AssetIdMismatch(Exception):
diff --git a/bigchaindb/core.py b/bigchaindb/core.py
index 83b85652..a5ec25e0 100644
--- a/bigchaindb/core.py
+++ b/bigchaindb/core.py
@@ -183,7 +183,7 @@ class Bigchain(object):
         except (ValueError, exceptions.OperationError, exceptions.TransactionDoesNotExist,
                 exceptions.TransactionOwnerError, exceptions.DoubleSpend,
                 exceptions.InvalidHash, exceptions.InvalidSignature,
-                exceptions.FulfillmentNotInValidBlock):
+                exceptions.TransactionNotInValidBlock):
             return False
 
     def get_transaction(self, txid, include_status=False):
diff --git a/bigchaindb/models.py b/bigchaindb/models.py
index 1334b2de..87ea57bb 100644
--- a/bigchaindb/models.py
+++ b/bigchaindb/models.py
@@ -2,7 +2,7 @@ from bigchaindb.common.crypto import hash_data, VerifyingKey, SigningKey
 from bigchaindb.common.exceptions import (InvalidHash, InvalidSignature,
                                           OperationError, DoubleSpend,
                                           TransactionDoesNotExist,
-                                          FulfillmentNotInValidBlock,
+                                          TransactionNotInValidBlock,
                                           AssetIdMismatch)
 from bigchaindb.common.transaction import Transaction, Asset
 from bigchaindb.common.util import gen_timestamp, serialize
@@ -54,6 +54,8 @@ class Transaction(Transaction):
             OperationError: if the transaction operation is not supported
             TransactionDoesNotExist: if the input of the transaction is not
                                      found
+            TransactionNotInValidBlock: if the input of the transaction is not
+                                        in a valid block
             TransactionOwnerError: if the new transaction is using an input it
                                    doesn't own
             DoubleSpend: if the transaction is a double spend
@@ -90,7 +92,7 @@ class Transaction(Transaction):
                                                   .format(input_txid))
 
                 if status != bigchain.TX_VALID:
-                    raise FulfillmentNotInValidBlock(
+                    raise TransactionNotInValidBlock(
                         'input `{}` does not exist in a valid block'.format(
                             input_txid))
 
diff --git a/tests/db/test_bigchain_api.py b/tests/db/test_bigchain_api.py
index f0a88c44..b52dd3a7 100644
--- a/tests/db/test_bigchain_api.py
+++ b/tests/db/test_bigchain_api.py
@@ -650,9 +650,9 @@ class TestTransactionValidation(object):
         assert transfer_tx == b.validate_transaction(transfer_tx)
 
     @pytest.mark.usefixtures('inputs')
-    def test_fulfillment_not_in_valid_block(self, b, user_vk, user_sk):
+    def test_transaction_not_in_valid_block(self, b, user_vk, user_sk):
         from bigchaindb.models import Transaction
-        from bigchaindb.common.exceptions import FulfillmentNotInValidBlock
+        from bigchaindb.common.exceptions import TransactionNotInValidBlock
 
         input_tx = b.get_owned_ids(user_vk).pop()
         input_tx = b.get_transaction(input_tx.txid)
@@ -673,7 +673,7 @@ class TestTransactionValidation(object):
                                          transfer_tx.asset)
         tx_invalid = tx_invalid.sign([user_sk])
 
-        with pytest.raises(FulfillmentNotInValidBlock):
+        with pytest.raises(TransactionNotInValidBlock):
             b.validate_transaction(tx_invalid)