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Business Law Glossary

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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.
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.