Business Law Glossary

Terms	Definitions
Abandon	Discard with no intention to reclaim.
Abatement	proportionate reduction in monetary bequest because of insufficient funds.
Abstract of title	history of real estate
Acceleration clause	clause allowing entire principal to be due
Acceptance	is the assent to an offer that results in a contract. The acceptance must be communicated to the offeror, but no particular procedure is required.
Acceptor	A drawee who accepts a draft, thus indicating a willingness to assume responsibility for its payment. Person who agrees to pay for a draft.
Accession	Adding property of another. The acquiring of property by means of the addition of person property of another.
Accretion	addition to land by gradual water deposits
Acknowledgement	declaration grantor has stated execution of instrument is a free act.
Action of Ejectment	action to have sheriff remove tenant.
Active Fraud	party engages in action that causes the fraud.
Ademption	failure of bequest because property not in testator's estate.
Administrative Agency	governmental board or commission with authority to regulate matters or implement laws.
Administrator, Administratrix, or Personal Representative	person ordered by court to administer estate of intestate
Adverse Possession	acquiring title to land by occupying it for a fixed period of time.
Affirmative Covenant	promise by grantee of deed to do an act.
Agency	Contract under which one party is authorized to contact for another.
Agency by Estoppel	Agency arising when person leads another to believe third party is agent.
Agency Coupled with an Interest	agency in which agent has financial stake in performance of agency because of having given consideration to principal.
Agent	Person appointed to contact on behalf of another.
Alien Corporation	One chartered in another country.
Allonge	Paper so firmly attached to instrument to be a part of it.
Alteration	The unauthorized change or completion of negotiable instrument to modify obligation of a party.
Annual Percentage Rate	Amount charged for loan as percentage of loan.
Annuity Insurance	contract that pays monthly income to insured while alive.
Anonymous Remailer	device that permits sending anonymous e-mail and software.
Answer or Motion	written response of a defendant to a complaint.
Anticipatory Breach	one party announces intention not to perform contract prior to time to perform.
Antitrust Law	statue that seeks to promote competition among business.
Apparent Authority	authority agent believed to have because of principal's behavior.
Appellate Court	court that reviews decision of a lower court.
Articles of Incorporation	Document stating facts about a corporation required by law.
Articles of Partnership	Written partnership agreement.
Assessment Mutual Company	insurance company in which losses are shared by policyholders.
Assignee	Person to whom contact right is assigned.
Assignment	Conveyance of rights in a contract to a person not a party.
Assignor	Person making an assignment.
Auction	oral sale of property to the highest bidder.
Automated Teller Machine	EFT terminal that performs routine banking services.
Bad Check	check the drawee bank refuses to pay.
Baggage	articles necessary for personal convenience while traveling.
Bailee	Person in possession of the bailed property.
Bailment	Transfer of possession of personal property on condition property will be returned.
Bailor	Person who gives up possession of bailed property.
Balloon Payment	payment more than twice the normal installment one.
Bank Draft or Teller's Check	Check drawn by one bank on another.
Bearer	payee of instrument made payable to whomever is in possession.
Bearer Paper	Commercial paper payable to bearer. May be payable to bearer, cash, or any other indications that does not purport to designate a specific person.
Beneficiary	person who receives: income or enjoyment of trust property; proceeds of life insurance; or property by will.
Bequest of Legacy	personal property left to person by will
Bidder	person who makes offer at auction.
Bilateral Contract	contract consisting of mutual exchange of promises.
Bill of Exchange	a draft
Bill of lading	receipt and contract between consignor and carrier.
Bill of rights	first ten amendments to U.S. Constitution.
Bill of Sale	written evidence of title to tangible personal property.
Binder	temporary contract of insurance.
Blank Indorsement	indorsement consisting of signature of indorser.
Blind Trust	assets and administration of trust hidden from grantor.
Blue-Sky Laws	state laws to prevent sale of worthless stock.
Boardinghouse Keeper	person in business to supply accommodations to permanent lodgers
Bond	sealed, written contract obligation with essentials of note.
Bonding Company	paid surety.
Breach of Contract	failure or refusal to perform contractual obligations.
Broker	agent with job of bringing two contracting parties together.
Business Crimes	crimes against business or committed using a business.
Business Interruption Insurance	insurance covering loss of profits while business building is repaired.
Business Law	rules of conduct for the performance of business transactions.
Business Tort	tort caused by or involving a business
Bylaws	rules enacted by directors to govern corporation's conduct.
Cancellation	Act that indicates intention to destroy validity of an instrument.
Capital Stock	declared value of outstanding stock.
Carrier	Transporter of goods.
Cashier's Check	check drawn by a bank on it's funds in bank.
Caveat Emptor	let the buyer beware.
Certificate of Deposit	Acknowledgment by bank of receipt of money with engagement to repay it.
Certified Check	Check accepted by bank's writing "certified" on it.
Check	Draft drawn on a bank and payable on demand: demand paper.
Check Truncation	shortening check's trip from payee to drawer
Civil Law	law dealing with enforcement or protection of private rights.
Close or Closely Held Corporation	One with very small number of shareholders.
Codicil	writing that modifies a will.
Coguarantors or Cosureties	two or more people jointly liable for another's obligation.
Coinsurance	insured recovers in ration of insurance to amount of insurance required.
Collateral Note	Note secured by personal property.
Collective Bargaining	Process which employer and union negotiates and agrees on terms of employment.
Color of Title	one's apparent title
Commercial Paper or Negotiable Instrument	writing drawn in special form that can be transferred as substitute for money or as instrument of credit.
Commercial Unit	quantity regarded as separate unit
Common Carrier	One that undertakes to transport without discrimination all who apply for service.
Common Law	English custom recognized by courts as binding.
Common Stock	Stock that entitles owner to vote.
Communication	telling something to a third person.
Community Property	property acquired during marriage owned separately and equally by both spouses.
Comparative Negligence	contributory negligence reduces but does not bar recovery.
Compensatory Damages	Amount equal to the loss sustained.
Complaint or Petition	Written request to a court to settle a dispute.
Composition of Creditors	when all of multiple creditors settle in full for a fraction of the amount owed.
Comprehensive Policy	insurance covering large number of miscellaneous risks.
Computer Crime	crime committed with involvement of computers.
Computer Trespass	unauthorized use of or access to a computer.
Concealment	willful failure to disclose pertinent information.
Confusion	inseparable mixing of goods of different owners.
Confusion of Source	representing goods or services as those of another.
Consideration	what promisor requires as the price for a promise.
Consignee	one to whom goods are shipped.
Consignment	transfer of possession of goods for purpose of sale.
Consignor	one who ships by common carrier.
Consolidation	combining two corporations to form a new one.
Constitution	document that contains fundamental principles of a government.
Constructive Bailment	bailment imposed when a person controls lost property.
Constructive Notice	information or knowledge imputed by law.
Constructive Trust	trust created by court to correct a wrong.
Consumer Goods or Services	goods or services primarily for personal, family, or household use.
Contract	legally enforceable agreement.
Contract to Sell	agreement to transfer title to goods for a price.
Contribution	right of co guarantor to recover excess of proportionate share of debt from other co guarantors.
Conversion	obtaining possession of property and converting it to own use.
Convict	person found guilty by court of major criminal offense.
Corporation	association of people created by law into an entity.
Counter offer	offeree's response that rejects offer by varying its terms.
Coupon Bond	bond with detachable individual coupons representing interest payments.
Court of Original General Jurisdiction	court of record in which case is first tried.
Court of Record	court in which an official record of the proceedings is kept.
Covenant	promise in a deed.
Cram Down	reorganization plan imposed by court in spite of creditors' objections.
Creation	Bringing property into being.
Creditor	party who receives guaranty
Creditor Beneficiary	person to whom promisee owes obligation, which is discharged if promisor performs.
Crime	offense against society.
Criminal Law	law dealing with offenses against society.
Cumulative Preferred Stock	stock on which all dividends must be paid before common dividends.
Cumulative Voting	Stockholder has votes equal to shares owned times number of directors to be elected.
Customary Authority	authority agent possesses by custom.
Damages	sum of money a wrongdoer must pay to an injured party.
Debenture	unsecur4ed bond issued by a business.
Debt	obligation to pay money.
Deductible Clause	insurance provision whereby insured pays damage up to specified amount and company pays excess up to policy limits.
Deed	writing conveying title to real property.
Deed of Trust	deed that transfers property to trustee for benefit of creditor.
Default	breach of contractual obligation other than money.
Defendant	Person against whom a case is filed.
Defense Clause	policy clause in which insurer agrees to defendc indured against damage claims.
Delegation	transfer of duties
Delivery	intentional transfer of possession and control of something.
Depository Bank	bank receiving check for deposit
Destination Contract	seller liable until goods delivered to destination.
Devise	Realty left by will.
Devisee	one receiving reality by will.
Disaffirmance	repudiation of a voidable contract.
Discovery	Means of obtaining information from other party before a trial.
Dishonor	Presentment made by acceptance or payment not made.
Disparate Impact	Fair policy disproportionately affecting a protected class.
Disparate Treatment	Intentional discrimination against a particular individual.
Dissolution	Termination of corporation's operation except activities needed for liquidation.
Dissolution of a Partnership	Change in relation of partners by the elimination of one.
Diversity Jurisdiction	federal jurisdiction based on parties being from different states.
Dividend	profits of a corporation allocated to stockholders.
Document of Title	document that shows ownership.
Domestic Corporation	one chartered in the state.
Domestic Relations Court	court that handles divorce and related cases.
Donee	person who receives a gift.
Donee Beneficiary	Third-party beneficiary for whom performance is a gift.
Donor	person who makes a gift.
Dormant or Sleeping Partner	partner unknown to public with no part of management.
Double Indemnity Rider	policy requiring insurer to pay twice ordinary face amount if death is accidental.
Draft or Bill of Exchange	written order by one person directing another to pay sum of money to third person.
Drawee	person ordered to pay draft.
Drawer	person who executes a draft
Durable Power of Attorney	Appointment of agency that survives incapacity of principal.
Duress	obtaining consent by means of a threat.
Abandon	Discard with no intention to reclaim.
Abatement	proportionate reduction in monetary bequest because of insufficient funds.
Abstract of title	history of real estate
Acceleration clause	clause allowing entire principal to be due
Acceptance	is the assent to an offer that results in a contract. The acceptance must be communicated to the offeror, but no particular procedure is required.
Acceptor	A drawee who accepts a draft, thus indicating a willingness to assume responsibility for its payment. Person who agrees to pay for a draft.
Accession	Adding property of another. The acquiring of property by means of the addition of person property of another.
Accretion	addition to land by gradual water deposits
Acknowledgement	declaration grantor has stated execution of instrument is a free act.
Action of Ejectment	action to have sheriff remove tenant.
Active Fraud	party engages in action that causes the fraud.
Ademption	failure of bequest because property not in testator's estate.
Administrative Agency	governmental board or commission with authority to regulate matters or implement laws.
Administrator, Administratrix, or Personal Representative	person ordered by court to administer estate of intestate
Adverse Possession	acquiring title to land by occupying it for a fixed period of time.
Affirmative Covenant	promise by grantee of deed to do an act.
Agency	Contract under which one party is authorized to contact for another.
Agency by Estoppel	Agency arising when person leads another to believe third party is agent.
Agency Coupled with an Interest	agency in which agent has financial stake in performance of agency because of having given consideration to principal.
Agent	Person appointed to contact on behalf of another.
Alien Corporation	One chartered in another country.
Allonge	Paper so firmly attached to instrument to be a part of it.
Alteration	The unauthorized change or completion of negotiable instrument to modify obligation of a party.
Annual Percentage Rate	Amount charged for loan as percentage of loan.
Annuity Insurance	contract that pays monthly income to insured while alive.
Anonymous Remailer	device that permits sending anonymous e-mail and software.
Answer or Motion	written response of a defendant to a complaint.
Anticipatory Breach	one party announces intention not to perform contract prior to time to perform.
Antitrust Law	statue that seeks to promote competition among business.
Apparent Authority	authority agent believed to have because of principal's behavior.
Appellate Court	court that reviews decision of a lower court.
Articles of Incorporation	Document stating facts about a corporation required by law.
Articles of Partnership	Written partnership agreement.
Assessment Mutual Company	insurance company in which losses are shared by policyholders.
Assignee	Person to whom contact right is assigned.
Assignment	Conveyance of rights in a contract to a person not a party.
Assignor	Person making an assignment.
Auction	oral sale of property to the highest bidder.
Automated Teller Machine	EFT terminal that performs routine banking services.
Bad Check	check the drawee bank refuses to pay.
Baggage	articles necessary for personal convenience while traveling.
Bailee	Person in possession of the bailed property.
Bailment	Transfer of possession of personal property on condition property will be returned.
Bailor	Person who gives up possession of bailed property.
Balloon Payment	payment more than twice the normal installment one.
Bank Draft or Teller's Check	Check drawn by one bank on another.
Bearer	payee of instrument made payable to whomever is in possession.
Bearer Paper	Commercial paper payable to bearer. May be payable to bearer, cash, or any other indications that does not purport to designate a specific person.
Beneficiary	person who receives: income or enjoyment of trust property; proceeds of life insurance; or property by will.
Bequest of Legacy	personal property left to person by will
Bidder	person who makes offer at auction.
Bilateral Contract	contract consisting of mutual exchange of promises.
Bill of Exchange	a draft
Bill of lading	receipt and contract between consignor and carrier.
Bill of rights	first ten amendments to U.S. Constitution.
Bill of Sale	written evidence of title to tangible personal property.
Binder	temporary contract of insurance.
Blank Indorsement	indorsement consisting of signature of indorser.
Blind Trust	assets and administration of trust hidden from grantor.
Blue-Sky Laws	state laws to prevent sale of worthless stock.
Boardinghouse Keeper	person in business to supply accommodations to permanent lodgers
Bond	sealed, written contract obligation with essentials of note.
Bonding Company	paid surety.
Breach of Contract	failure or refusal to perform contractual obligations.
Broker	agent with job of bringing two contracting parties together.
Business Crimes	crimes against business or committed using a business.
Business Interruption Insurance	insurance covering loss of profits while business building is repaired.
Business Law	rules of conduct for the performance of business transactions.
Business Tort	tort caused by or involving a business
Bylaws	rules enacted by directors to govern corporation's conduct.
Cancellation	Act that indicates intention to destroy validity of an instrument.
Capital Stock	declared value of outstanding stock.
Carrier	Transporter of goods.
Cashier's Check	check drawn by a bank on it's funds in bank.
Caveat Emptor	let the buyer beware.
Certificate of Deposit	Acknowledgment by bank of receipt of money with engagement to repay it.
Certified Check	Check accepted by bank's writing "certified" on it.
Check	Draft drawn on a bank and payable on demand: demand paper.
Check Truncation	shortening check's trip from payee to drawer
Civil Law	law dealing with enforcement or protection of private rights.
Close or Closely Held Corporation	One with very small number of shareholders.
Codicil	writing that modifies a will.
Coguarantors or Cosureties	two or more people jointly liable for another's obligation.
Coinsurance	insured recovers in ration of insurance to amount of insurance required.
Collateral Note	Note secured by personal property.
Collective Bargaining	Process which employer and union negotiates and agrees on terms of employment.
Color of Title	one's apparent title
Commercial Paper or Negotiable Instrument	writing drawn in special form that can be transferred as substitute for money or as instrument of credit.
Commercial Unit	quantity regarded as separate unit
Common Carrier	One that undertakes to transport without discrimination all who apply for service.
Common Law	English custom recognized by courts as binding.
Common Stock	Stock that entitles owner to vote.
Communication	telling something to a third person.
Community Property	property acquired during marriage owned separately and equally by both spouses.
Comparative Negligence	contributory negligence reduces but does not bar recovery.
Compensatory Damages	Amount equal to the loss sustained.
Complaint or Petition	Written request to a court to settle a dispute.
Composition of Creditors	when all of multiple creditors settle in full for a fraction of the amount owed.
Comprehensive Policy	insurance covering large number of miscellaneous risks.
Computer Crime	crime committed with involvement of computers.
Computer Trespass	unauthorized use of or access to a computer.
Concealment	willful failure to disclose pertinent information.
Confusion	inseparable mixing of goods of different owners.
Confusion of Source	representing goods or services as those of another.
Consideration	what promisor requires as the price for a promise.
Consignee	one to whom goods are shipped.
Consignment	transfer of possession of goods for purpose of sale.
Consignor	one who ships by common carrier.
Consolidation	combining two corporations to form a new one.
Constitution	document that contains fundamental principles of a government.
Constructive Bailment	bailment imposed when a person controls lost property.
Constructive Notice	information or knowledge imputed by law.
Constructive Trust	trust created by court to correct a wrong.
Consumer Goods or Services	goods or services primarily for personal, family, or household use.
Contract	legally enforceable agreement.
Contract to Sell	agreement to transfer title to goods for a price.
Contribution	right of co guarantor to recover excess of proportionate share of debt from other co guarantors.
Conversion	obtaining possession of property and converting it to own use.
Convict	person found guilty by court of major criminal offense.
Corporation	association of people created by law into an entity.
Counter offer	offeree's response that rejects offer by varying its terms.
Coupon Bond	bond with detachable individual coupons representing interest payments.
Court of Original General Jurisdiction	court of record in which case is first tried.
Court of Record	court in which an official record of the proceedings is kept.
Covenant	promise in a deed.
Cram Down	reorganization plan imposed by court in spite of creditors' objections.
Creation	Bringing property into being.
Creditor	party who receives guaranty
Creditor Beneficiary	person to whom promisee owes obligation, which is discharged if promisor performs.
Crime	offense against society.
Criminal Law	law dealing with offenses against society.
Cumulative Preferred Stock	stock on which all dividends must be paid before common dividends.
Cumulative Voting	Stockholder has votes equal to shares owned times number of directors to be elected.
Customary Authority	authority agent possesses by custom.
Damages	sum of money a wrongdoer must pay to an injured party.
Debenture	unsecur4ed bond issued by a business.
Debt	obligation to pay money.
Deductible Clause	insurance provision whereby insured pays damage up to specified amount and company pays excess up to policy limits.
Deed	writing conveying title to real property.
Deed of Trust	deed that transfers property to trustee for benefit of creditor.
Default	breach of contractual obligation other than money.
Defendant	Person against whom a case is filed.
Defense Clause	policy clause in which insurer agrees to defendc indured against damage claims.
Delegation	transfer of duties
Delivery	intentional transfer of possession and control of something.
Depository Bank	bank receiving check for deposit
Destination Contract	seller liable until goods delivered to destination.
Devise	Realty left by will.
Devisee	one receiving reality by will.
Disaffirmance	repudiation of a voidable contract.
Discovery	Means of obtaining information from other party before a trial.
Dishonor	Presentment made by acceptance or payment not made.
Disparate Impact	Fair policy disproportionately affecting a protected class.
Disparate Treatment	Intentional discrimination against a particular individual.
Dissolution	Termination of corporation's operation except activities needed for liquidation.
Dissolution of a Partnership	Change in relation of partners by the elimination of one.
Diversity Jurisdiction	federal jurisdiction based on parties being from different states.
Dividend	profits of a corporation allocated to stockholders.
Document of Title	document that shows ownership.
Domestic Corporation	one chartered in the state.
Domestic Relations Court	court that handles divorce and related cases.
Donee	person who receives a gift.
Donee Beneficiary	Third-party beneficiary for whom performance is a gift.
Donor	person who makes a gift.
Dormant or Sleeping Partner	partner unknown to public with no part of management.
Double Indemnity Rider	policy requiring insurer to pay twice ordinary face amount if death is accidental.
Draft or Bill of Exchange	written order by one person directing another to pay sum of money to third person.
Drawee	person ordered to pay draft.
Drawer	person who executes a draft
Durable Power of Attorney	Appointment of agency that survives incapacity of principal.
Duress	obtaining consent by means of a threat.
Easement	an interest in land for nonexclusive or intermittent use.
Electronic Fund Transfer	fund transfer initiated electronically, telephonically, or by computer.
Embezzlement	improper appropriation of property by entrustee.
Employment at Will	employment terminable by employer or employee for any reason.
Endowment Insurance	decreasing term insurance plus savings account.
Equipment	goods for use in business.
Equity	Justice system based on fairness; provides relief other than merely money damages.
Estate	interest in property; property left by a deceased person.
Estoppel	one party leads the second to a false conclusion the second party relies on' the second party would be harmed if the first party were later allowed to show the conclusion was false.
Ethics	principles that determine the morality of conduct, its motives, and its duties.
Eviction	expulsion of tenant from leased property.
Executed Contract	fully performed contract.
Executor or Personal Representative	person named in will to administer estate.
Executory Contract	fully performed contract
Executor or Personal Representative	person named in will to administer estate.
Executory Contract	contract not fully carried out.
Existing Goods	goods that are in being and owned by the seller.
Exoneration	guarantor's right to have creditor compel payment of debt.
Express Authority	authority of agent stated in agreement creating agency.
Express Contract	contract the terms of which are specified in words.
Express Trust	trust clearly established as a trust.
Express Warranty	statement of guarantee by seller.
Face	maximum insurer pays for loss.
Factor	bailee seeking to sell property on commission
Factor del Credere	factor who sells on credit and guarantees price will be paid.
False Representation	misstatement of material fact.
Federal Court of Appeals	court that hears appeals in federal court system.
Federal District Court	trial court of federal court system.
Fee Simple Estate	largest, most complete right n property.
Fellow Servant	employee with same status and working with another worker.
Felony	a more serious crime.
Fictitious Name Registration Statute	law requiring operator of business under assumed name to register with state.
Fidelity Board	surety ship for someone who handles another's money.
Fiduciary	a person in relationship of trust and confidence.
Finance Charge	total amount paid for credit
Financing Statement	writing with signatures and addresses of debtor and secured party and description of collateral.
Firm Offer	a merchant's signed, written offer to sell or purchase goods saying it will be held open.
Fixture	personal property so securely attached to real estate that it becomes part of the real estate.
Floating Policy	insurance coverage no matter where property is located.
FOB (Free on Board)	designated point to which seller bears risk and expense.
Forbearance	refraining from doing something.
Forcible Entry and Detainer Action	summary action by landlord to regain possession of leasehold.
Foreclosure	sale of mortgaged property to pay debt.
Foreign Corporation	one chartered in another state.
Formal Contract	contract with special form or manner of creation.
Fraud	Inducing another to contract as a result of intentionally or recklessly false states of a material fact.
Fraud in the Execution	party did not intend to enter into a into a contract but signed a document because of false statements.
Fraud in the Inducement	defrauded party intended to make a contract because of false statements regarding contract.
Friendly Fire	fire contained where intended.
Full Warranty	warranty with unlimited duration implied warranties and agreement to remedy defects without charge.
Fungible Goods	goods of a homogenous nature sold by weight or measure.
Future Goods	goods not both existing and identified.
Gambling Contract	agreement in which parties win or lose by chance.
General Agent	agent authorized to carry out particular kind of business or all business at a place.
General Partner	partner actively and openly engaged in business.
General Warranty Deed	warrants good title free from all claims.
Gift	transfer of ownership without consideration.
Goods	moveable personal property.
Grace Period	30 or 31 day period in which late premium may be paid without policy lapsing.
Grantee	person receiving title to property
Grantor	person conveying property; in trusts also called settlor or trustor.
Guarantor or Surety	party who agrees to be responsible for obligation of another
Guest	transient received by hotel for accommodations.
Hacker	unauthorized person who gains access to another's computer.
Hazards	factors that contribute to uncertainty.
Holder	person in possession of instrument payable to bearer or that person.
Holder in Due Course	holder for value and in good faith with no knowledge of dishonor, defenses, or claims, or that paper is overdue; acquires rights superior to original owner.
Holder Through a Holder in Due Course	holder subsequent to holder in due course.
Holographic Will	will written out by testator
Homeowners' Policy	insurance for owners living in their houses with coverage of many perils and liability.
Hostile Fire	fire out of its normal place.
Hostile Work Environment	alteration of terms or conditions of employment by harassment.
Hot Cargo Agreement	agreement employer will not use nonunion materials.
Hotelkeeper	one engaged in business of offering lodging to transients.
Identified Goods	goods picked to be delivered to the buyer.
Implied Authority	agent's authority to do things in order to carry out express authority.
Implied Contract (Implied in Fact Contract)	contract with major terms implied by the parties' conduct.
Implied Warranty	warranty imposed by law.
Incidental Beneficiary	person who unintentionally benefits from performance of contract.
Incorporators	people initially forming a corporation.
Incoterms	international commercial terms.
Indemnity	right of guarantor to be reimbursed by principal.
Independent Contractor	one who contracts to do jobs and is controlled only by contract as to how performed.
Indorsee	named holder of indorsed negotiable instrument.
Indorsement	signature of holder on back of instrument with any directions or limitations.
Indorser	payee or holder who signs back of instrument
Inferior Court	trial court that hears only cases involving minor offenses and disputes.
Injunction	court's permanent order forbidding an action.
Injunctive Powers	power to issue cease-and-desist orders
Injurious Falsehood, Commercial Disparagement, or Trade Libel	false statement of fact that degrades quality of another's goods or services.
Island Draft	draft drawn and payable in the United States.
Innocent Misrepresentation	false statement made in belief it's true.
Insider	officer, director, or owner of more than 10% of stock
Insurable Interest	interest in nonoccurrence of risk insured against.
Insurance	contract that transfers risk of financial loss for a fee.
Insured	person protected against loss,
Insurer	company writing contract to compensate for lo0ss specified in contract
Intangible Personal Property	evidences of ownership of rights or value
Intellectual Property	property produced by human innovation and creativity.
Intestate	one who dies without a will.
Inventory	articles purchased with intention of reselling or leasing.
Issue	first delivery of negotiable instrument by maker or drawer to give rights to another.
Joint and Several Contract	agreement by which two or more people are bound jointly and individually.
Joint and Survivor Annuity	contractual payments made until second of two people dies.
Joint Contract	agreement obligating or entitling two or more people together to performance.
Joint-Stock Company	entity that issues shares of stock, but investors have unlimited liability.
Joint Tenancy	multiple ownership in which, at death of one, deceased's share passes to remaining owners.
Joint Venture	business relationship similar to partnership, except existing only for single transaction.
Judge, Justice of the Peace, Magistrate, or Trial Justice	chief officer of court.
Judicial Admission	fact acknowledged in course of legal proceeding.
Jurisdiction	authority of a court to hear a case.
Justice of the Peace or Magistrate	chief officer of inferior court
Juvenile Court	court that handles delinquent, dependent, and neglected children.
Landlord or Lessor	owner of leased property
Larceny	taking property without consent of person in possession.
Last Clear Chance	negligent driver recovers if other driver had one last clear chance to avoid injury.
Law	governmental rule prescribing conduct and carrying a penalty for violation.
Law Merchant	rules applied by courts set up by merchants in early England.
Lawyer or Attorney	person licensed to represent others in court.
Lease	contract between landlord and tenant
Leasehold Interest Insurance	covers cost of higher rent when leased building is damaged.
Legal Rate	interest rate applied when no rate specified
Legal Tender	any form of lawful money.
Legatee	one receiving personal property by will
License	right to do certain acts on land.
Lien	encumbrance or claim against property.
Life Estate	estate for duration of a person's life.
Life Insurance	contract of insurer to pay money on death of insured.
Life Tenant	person owning property for a lifetime.
Limited Defense	defense ineffective against holder in due course.
Limited Liability	capital contribution is maximum loss.
Limited Liability Company	partnership-type organization but with limited liability.
Limited Partner	partner who takes no active part in management, whom the public knows as a partner, and whose liability is limited to capital contribution.
Limited Partnership	partnership with at least one limited partner.
Limited Warranty	written but not full warranty
Liquidated Damages	sum fixed by contract for breach where actual damages are difficult to measure.
Lost Property	property unintentionally left with no intention to discard.
Maker	person who executes a note.
Malpractice	failure to perform with ability and care normally exercised by people in the profession.
Marshal	executive officer of federal court.
Maximum Contract Rate	highest legal rate of interest
Mechanic's Lien	lien of people who have furnished materials or labor on property.
Merchant	person who deals in goods of he kind or by occupation is considered to have particular knowledge or skill regarding goods involved.
Merger	one corporation absorbed by another.
Minor	person under the legal age to contract.
Misdemeanor	a less serious crime.
Misrepresentation	false statements of a material fact.
Model	replica of an article
Money Order	instrument issued by business indicating payee may receive indicated amount.
Mortgage	interest in real estate given to secure debt.
Mortgagee	person who holds the mortgage
Mortgagor	person who gives mortgage
Movable Personal Property	all physical items except real estate.
Mutual Insurance Company	company of policyholder investors
Mutual Mistake	mistake by both parties to a contract.
Necessaries	items required for living at a reasonable standard.
Negative Covenant	agreement by grantee not to do an act.
Negligence	failure to exercise reasonable care
Negotiability	transferability
Negotiable Instrument	document of payment, such as a check
Negotiation	act of transferring ownership of negotiable instrument.
No-Fault Insurance	insurance companies pay for their insured's injuries regardless of fault.
Nominal Damages	small amount awarded when there is technical breach but no injury.
Nominal Partner	person who pretends to be a partner.
Noncumulative Preferred Stock	stock on which current dividends must be paid before common dividends.
Nonparticipating Preferred Stock	stock on which maximum dividend is stated percentage.
Nonresellable Goods	specially made goods not easily sellable to others.
Nontrading Partnership	one devoted to professional services.
No-Par-Value Stock	stock without face value
Not-for-Profit Corporation	one formed by private individuals for charitable, educational, religious, social, or fraternal purpose.
Notice and Comment Rule Making	enacting administrative rules by publishing the proposed rule and then the final rule without holding formal hearings.
Novation	termination of a contract and substitution of a new one with same terms but new party.
Nuncupative Will	oral will made during last illness.
Offer	a proposal to make a contract.
Offeree	person to whom offer is made.
Offeror	person who makes an offer.
Open Policy	insurance contract that requires insured to prove loss sustained.
Option	binding promise to hold an offer open.
Oral Contract	contract with terms spoken
Order Bill of Lading	contract allowing delivery of shipped goods to bearer.
Order Paper	negotiable instrument payable to order
Ordinance	law enacted by a city.
Ordinary or General Partnership	partnership with no limitation on rights and duties of partners.
Parol Evidence	oral testimony
Parol Evidence Rule	complete, written contract may not be modified by oral testimony unless evidence of fraud, accident, or mistake.
Participating Preferred Stock	stock that shares with common stock in extra dividends.
Partition	suit to divide joint tenancy
Partner	member of a partnership.
Partnership	association of two or more people to carry on business for profit.
Par-Value Stock	stock with assigned face value.
Passive Fraud	failure to disclose information when there is duty to do so.
Pawn	tangible personal property left as security for a debt.
Payee	party to whom instrument of payable.
Per Capita	per head
Per Se Violation	activity illegal regardless of its effect.
Per Stirpes	distribution among heirs according to relationship to deceased.
Perfected Security Interest	seller's right to collateral that is superior to third party's right.
Personal Property	movable property; interests less than complete ownership in land; or rights to money.
Physical Damage Insurance	insurance for damage to car itself.
Piercing the Corporate Veil	ignoring the corporate entity.
Pirated Software	software copied illegally.
Plaintiff	person who begins a civil lawsuit
Pledge	intangible property serving as security for a debt.
Point-of-Sale System	EFT's begun at retailers when customers pay for goods or services.
Policy	written contract of insurance
Polygraph	lie detector.
Postdated Check	check drawn before its date.
Power of Attorney	writing appointing an agent.
Preauthorized Credit	automatic deduction of bill payment from checking account.
Preauthorized Debit	automatic deduction of bill payment from checking account.
Precedent	court decision that determines the decision in a subsequent, similar case.
Preemptive Right	right to purchase new shares in proportion to shares owned.
Preference	disallowed transfer to a creditor
Preferred Stock	stock giving special advantage
Premium	consideration paid by insured.
Presentment	demand for acceptance or payment
Price	consideration in a sales contract.
Pima Facie	on the face of it
Prima Facie Evidence	Evidence sufficient on its face, if uncontradicted.
Primary Liability	liability without conditions for negotiable instrument that is due.
Principal	party primarily liable;' person who appoints another to contract with third parties.
Private Carrier	carrier that transports under special arrangements for a fee.
Private Corporation	one formed to do nongovernmental function.
Privity of Contract	relationship between contracting parties.
Probate	court procedure to determine validity of a will
Probate Court	court that handles estates
Procedural Law	law specifying how actions are filed and what trial procedure to follow.
Profit Corporation	one organized to run a business and earn money.
Promissory Estoppel	substitute for consideration when another acts in reliance on promisor's promise.
Promissory Note	unconditional written promise to pay sum of money to another.
Promoter	one who takes initial steps to form.
Property	anything that may be owned.
Property Insurance	contract by which insurer pays for damage to property.
Proprietor	owner of sole proprietorship.
Prosecutor or District Attorney	government employee who brings criminal actions.
Prospectus	document giving specified information about corporation.
Protected Class	group protected by antidiscrimination laws.
Protest	certification of notice of dishonor by authorized official.
Proxy	person authorized to vote for another; written authorization to vote for another.
Proxy War	attempt by competing sides to secure majority of stockholders' votes.
Public Corporation	one formed for governmental function.
Public Liability Insurance	insurance designed to protect third persons from bodily injury and property damage.
Publication	testator's informing witnesses that document is will.
Punitive Damages	amount paid to one party to punish the other.
Purchase	ownership by payment.
Qualified Indorsement	Indorsement that limits liability of indorser.
Quasi Contract (Implied in Law Contract)	imposition of rights and obligations by law without a contract
Quasi Public Corporation	public body with powers similar to corporations.
Quitclaim Deed	deed that transfers whatever interest grantor has in property.
Quorum	minimum number of shares required to be represented to transact corporate business.
Ratification	approval of unauthorized act; adult indicating contract made whole a minor is binding.
Real Estate Mortgage Note	note secured by mortgage on real property.
Real Property	land and permanent attachments to land.
Receipt	taking possession of goods.
Recognizance	obligation entered into before a court to do an act required by law.
Redemption	right to free property from lien of mortgage.
Reformation	judicial correction of a contract.
Registered Bond	bond payable to specific person, whose name is recorded by issuer.
Remainder	interest in life estate that goes to someone other than grantor on death of life tenant.
Renewable Term Insurance	term insurance renewable without physical examination.
Rent	amount paid landlord for possession of property.
Renunciation	unilateral act of holder giving up rights in the instrument or against a party to it.
Reporting Form for Merchandise Inventory	insurance policy allowing periodic reporting of inventory on hand to vary coverage amount.
Rescind	set aside or canceled.
Respondeat Superior	theory imposing liability on employers for torts of employees.
Restraining Order	court's temporary order forbidding an action.
Restrictive Indorsement	indorsement that restricts use of instrument.
Resulting or Purchase Money Trust	trust created when person buys property but takes title in another's name
Reversion	interest of grantor in life estate that returns to grantor on death of life tenant.
Rider	addition to insurance policy that modifies, extends, or limits base contract.
Right of Survivorship	automatic ownership of property by survivors.
Right to Take Against the Will	Spouse's right to share of estate provided by statute is will leaves smaller share.
Risk or Peril	danger of loss
Robbery	taking property by force
Rogue Program	software instructions that produce abnormal computer behavior.
Sale	transfer of title to goods for a price
Sale on Approval	sale that is not completed until buyer approves goods.
Sale or Return	completed sale with right to return goods
Sample	portion of whole mass of goods sold
Secondary Boycott	attempt by employees to stop third party dealing with employer.
Secondary Liability	liability for a negotiable instrument that has been presented, dishonored, and notice of dishonor given.
Secondary Meaning	special meaning of a mark that distinguishes goods and warrants trademark protection
Secret Partner	partner active but unknown to public
Secured Credit Sale	sale in which seller retains right to reposes goods upon default.
Security Agreement	written agreement signed by buyer that creditor has a security interest in collateral.
Setoff	a claim by the party being sued against the party suing.
Several Contract	seller liable until goods delivered to carrier.
Share	unit of stock
Shareholder or Stockholder	person who owns stock
Sheriff	court of record executive officer.
Shipment Contract	seller liable until goods delivered to carrier.
Shop Right	employer's right to use employee's invention without payment of royalty.
Shoplifting	taking uppercased goods from store.
Short-Swing Profits	profits made by insider buying and selling corporation's stock within six months.
Sight Draft	draft payable on presentation by holder.
Silent Partner	partner who takes no part in firm
Simple Contract	contract that is nor formal.
Sole Proprietorship	business owned and carried on by one person.
Special Agent	agent authorized to transact specific act or acts.
Special Federal Court	federal trial court with limited jurisdiction.
Special Indorsement	indorsement that designates particular person to whom payment is to be made.
Special Warranty Deed	warrants grantor has right to convey real property.
Specific Performance	carrying out the terms of contract.
Specific Policy	insurance on only one item.
Stale Check	check presented more than six months after its date.
Stare Decisis	principle that a court decision controls the decision of a similar future case.
State Court of Appeals	intermediate appellate court
State Supreme Court	highest court in most states
Statute	law enacted by legislative bodies
Statute of Frauds	laws requiring certain contracts to be writing.
Statute of Limitations	time within which right to sue must be exercised or lost.
Stock Corporation	one in which ownership is represented by stock.
Stock Insurance Company	corporation of stockholder investors.
Stock Option	right to purchase shares at set price
Straight Bill of Lading	contract requiring delivery of shipped goods to consignee only.
Strict Tort Liability	manufacturer of dangerous product liable without proof of negligence for dangerous product.
Strike	temporary, concerted action of workers to withhold their services from employer.
Sublease	transfer of less than a tenant's full rights under a lease.
Subrogation	right of insurer to assume rights of insured.
Subscriber	one who agrees to buy stock in proposed corporation.
Summons or Process	notice of suit
Supreme Court of the United States	highest court in the United States.
Tangible Personal Property	personal property that can be seen, touched, and possessed.
Tenancy at Sufferance	holdover tenant without landlord's permission.
Tenancy at Will	tenancy for uncertain period.
Tenancy by the Entirety	co-ownership by husband and wife with right of survivorship.
Tenancy for Years	tenancy for any definite period
Tenancy from Year to Year	tenancy for indefinite period with yearly rent.
Tenancy in Common	multiple ownership in which, at death, deceased owner's share passes as will directs or to heirs.
Tenancy in Partnership	ownership of partner in partnership property.
Tenant or Lessee	possessor of leased property.
Tender of Payment	offer and ability to pay money owed.
Tender of Performance	offer to perform in satisfaction of terms of contract.
Term Insurance	contract whereby insurer assumes risk of death of insured for specified time.
Testamentary Trust	trust created in will
Testator (Testatrix)	person making a will
Theft	taking another's property without consent.
Third-Party Beneficiary	person not party to contract but whom parties intended to benefit.
Time Draft	draft payable certain number of days or months after date or presentation.
Title	ownership; evidence of ownership of property.
Tort	private wrong for which damages may be recovered.
Tortfeasor	person whose action causes injury.
Trade Acceptance	draft drawn by seller on purchaser of goods.
Trade Fixtures	fixtures used in business.
Trademark	word, symbol, device, or combination used to identify goods.
Trademark or Trade Name Infringement	unauthorized use or imitation of another's mark or name.
Trading Partnership	one engaged in buying and selling.
Trailing Edge	left side of front of check
Treasure Stock	stock reacquired by a corporation.
Trial Court	court that conducts original trial of a case.
Trust	contract by which one holds property for another
Trustee	one who holds title to property for another.
Ultra Vires Contract	contract exceeding corporation's powers.
Uncured Default	not all payments on instrument fully made by due date.
Undue Influence	person in special relationship causing another's action contrary to free will.
Unenforceable Contract	agreement that is not currently binding.
Unfair Competition	impression of product results in confusion regarding its origin.
Unilateral Contract	contract calling for an act in consideration for a promise.
Unilateral Mistake	mistake by one party to a contract
Union Shop	work setting in which all employees must be union members.
Unit Pricing	price stated per unit of measurement.
Universal Defense	defense against ay holder.
Unjust Enrichment	one benefiting unfairly at another's expense.
Unlimited Liability	business debts payable from personal assets.
Usury	charging higher rate of interest than law allows.
Valid Contract	contract enforceable by law
Valued Policy	policy that fixes values for insured items
Venue	location where a case is to be tried
Verdict	decision of a jury.
Violation or Infraction	offense less serious than a misdemeanor.
Void	of no legal effect
Voidable Contract	enforceable agreement that may be set aside by one party.
Voting Trust	device whereby stock is transferred to trustee to vote it.
Voucher Check	check with voucher attached.
Warehouse Receipt	document of title issued by storage company for goods stored.
Warranty	assurance goods conform to a standard; statement of insured tha relates to risk and is in contract.
Warranty Deed	deed with guarantee.
Watered Stock	stock paid for with property of inflated value.
Whistleblower	person who exposes wrongdoing in an organization.
Will	document providing disposition of property after death.
Winding Up	taking care of outstanding obligations and distributing remaining assets of partnership.
With Reserve	auction goods may be withdrawn after bidding starts.
Without Reserve	auction goods may not be withdrawn after bidding starts.
Wobbler	an offense that can be either a felony or a misdemeanor.
Writ of Certiorari	order produce record of a case.
Written Contract	contract with terms in writing.

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Business Law Glossary

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