Business Law Glossary

728 terms by EveKulmann 

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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.

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