Business Law

Acceptance

An agreement to an offer resulting in a contract.

Accord and Satisfaction

An agreement made and executed in satisfaction of the rights one has from a previous contract.

Agent

The party appointed by the principal to enter into a contract with a third party on behalf of the principal.

Alien Corporation

One that is incorporated in a foreign country.

Answer

Official document detailing a defendant's defense.

Antitrust

Laws which seek to promote competition among businesses.

Appellate Court

Court hearing cases appealed from lower courts.

Arraignment

Charging a person with a crime and asking for the person's plea.

Arrest

To take into police custody.

Assignee

The party to whom the assignment is made.

Assignment

A means whereby one party conveys rights to another person who is not a party to the original contract.

Assignor

The party making the assignment.

Authority

Power to act for someone else.

Bailee

The party who acquires possession but not the title of personal property in a bailment.

Bailment

The transfer of possession but not the title, of property in a bailment.

Bearer Paper

A commercial paper payable to bearer; I.E. to the person having possession of such.

Beneficiary

Recipient of the proceeds of a life insurance policy; one who inherits property as specified in a will.

Bill of Lading

The contract existing between the consignor (shipper) and the carrier.

Bill of Sale

A document of conveyance that provides written evidence of one's title to tangible personal property.

Blank Endorsement

Having no words other than the signature of the endorser.

Board of Directors

A body of persons elected by the stockholders to define and establish corporate policy.

Booking

Administrative step taken after an arrested person is brought to a police station, which involves entry of the person's name, the crime for which the arrest was made, and other relevant facts on the police "blotter," an which may also include photographin

Breach of Contract

A situation in which on of the parties to a contract fails of otherwise refuses to perform the obligation established in that contract.

Business Law

Those rules of conduct prescribed by a government and its agencies, regulation business transaction.

Capital Stock

Declared value of outstanding stock.

Cashier's Check

A check drawn on a bank's own funds and signed by a responsible bank official.

Certificate of Deposit

The acknowledgment by a bank of a receipt of money with an agreement of repayment.

Certificate of Deposit

The acknowledgment by a bank of a receipt of money with an agreement of repayment.

Certified Check

A check for which the bank assures that the drawer has sufficient funds to make payment

Check

An order by a depositor on the bank to pay a sum of money to a payee.

Civil Law

Legal proceedings concerned with the rights of public citizens

Close (closed, closely held) corporation

A designation which applies to a corporation in which outstanding shares of stock and managerial control are held by a limited number of people (often members of the same family)

Commercial Paper (Negotiable Instrument)

A writing drawn in a special from which can be transferred from person to person as a substitute for money or as instrument of credit.

Common Law

Customs that have become recognized by the courts as binding on the community.

Common Stock

Stock that entitles owner vote.

Compensatory Damages

An award paid to the injured party to cover the exact amount of their loss, but no more.

Complaint (petition)

A written request initiation a civil suit.

Consideration

That which the promisor demands and receives as the price for a promise.

Consignee

One to whom goods are shipped by common carrier.

Consignor

One who ships goods by common carrier.

Contract

An agreement between two or more competent persons which is enforceable by law.

Contract to Sell

An agreement wherein a seller agrees to transfer title of goods to a buyer for a consideration (price), at a future time.

Contractual Capability

The necessity that the parties desiring to enter into contracts meet all requirements.

Corporation

An artificial being, invisible, intangible and existing only in contemplation of law; an entity that has a distinct existence separate and apart form the existence of its individual members.

Counteroffer

An intended acceptance which changes or qualifies the offer, and is a rejection of the original offer.

Creditor Beneficiary

The person to whom the promise of a contract owes an obligation or duty which will be discharged to the extent that the promisor performs the promise.

Crime

An offense which is injurious to society as a whole.

Criminal Law

Laws dealing with crimes and the punishment of wrongdoers.

Defendant

The person against whom legal action is brought.

Disaffirmance

The repudiation of, or election to avoid, a voidable contract.

Discharge

Termination of a contract by performance, agreement, impossibility, acceptance of breach, or operation of law.

Discovery

Pretrial Steps taken to learn the details of the case.

Domestic Corporation

Operates in the state that granted the charter.

Donee Beneficiary

A third party beneficiary to whom no legal duty is owed and for whom performance is a gift.

Dormant of sleeping partner

Partner unknown to public with no part in management.

Draft

A written order signed by one person requiring the person to whom it is addressed to pay a particular sum of money to the bearer, either on demand or at a certain time.

Drawee

The person, company or financial institution ordered to pay a draft.

Drawer

The person who executes any draft.

Duress

A means of removing one's free will; obtaining consent by means of threat to do harm to the person, his family, or his property.

Employee

The person hired to perform work and who is obligated both as to the work to be done and as to the manner in which it is to be done.

Employer

The party who hires employees to do certain work.

Endorsee

the person who becomes the holder of a negotiable instrument by endorsements which names him or her as the person to whom the instrument is negotiated.

Endorsement

The signature of statement of purpose by the owner on the back of a negotiable instrument, which indicates the future control of the instrument.

Endorser

Person who writes his or her name on back of instrument is negotiated.

Executed Contracts

Those contracts in which the terms have not been completely executed or fulfilled.

Existing Goods

Those goods which are, at the time of the contract, in existence and owned by the seller

Express Authority

The authority of an agent, stat

Express Contract

A contract in which the parties express their intentions, either orally or in writing at the time of the agreement.

Express Warranty

The actual and definite statement of a seller, either verbally or in writing guaranteeing a standard or level of performance.

Felony

A criminal offense that is punishable by confinement in prison or by death.

Fiduciary

A relationship of trust and confidence, such as that which exists between partners in a partnership.

Foreign corporation

Designation that applies when a corporation operates in any state other than where it is chartered.

Formal Contract

Those contracts that must be in special form or produced in a certain way, such as under seal.

Fraud

The intentional or reckless false statement of a material fact upon which the injured party relied which induced the injured party to enter into a contract to his or her detriment.

Future goods

Those goods which are not in existence at the time a contract i agreed to

General Agent

One who is authorized to execute the principal's business of a particular kind, or all the principal's business at a particular place, if not all of one kind.

General Partner

An individual actively and openly engaged in the business and held out to everyone as a partner.

Goods

Movable tangible personal property

Holder

One in possession of commercial paper.

Identified Goods

The goods specified by the buyer and seller.

Implied Authority

An agent's authority to do things not specifically authorized in order to carry out express authority.

Implied Contract

On in which terms of the contract are implied by acts or conduct of the parties.

Implied Warranties

A warranty imposed by law, arising automatically because the sale has been made.

Independent Contractor

One who contracts to perform certain tasks for a set fee, but who is independent of the control of the contracting party as a means by which the contract is executed, except for specification established in the contract.

Injunction

A judicial order or decree forbidding the performance of a certain act.

Intangible Personal Property

Evidences of ownership of personal property such as stock of corporations, check and copyrights.

Judgment

A decision of a court.

Law (Blackstone's Definition)

Those rules of civil conduct commanding what is right and prohibiting what is wrong.

Limited liability Corporation

Newest form of business ownership recognized in the U.S.; combines features of both corporation and partnership.

Limited Partner

Partner whose liability for the firm's debts is limited to the amount of his/her investments.

Liquidated Damages

A provision in a contract fixing the amount of the damages to be paid in the event one party breaches the contract.

Maker

The person who executes a promissory note.

Malpractice

A breach of contact by a professional; failure to perform a professional service with the ability and care generally exercised by others in the profession.

Promissory Note

A Negotiable instrument containing a promise to pay.

Promoter

One who takes initial steps to for corporation.

Property

Anything that may be owned.

Public Corporation

A corporation formed to carry out government functions.

Punitive Damages

An award paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff.

Qualified Endorsement

An endorsement which limits the liability of the endorser.

Ratification

Confirming an act that was executed without authority or an act which was voidable.

Restrictive Endorsement

An endorsement which prevents the use of the instrument for anything except the stated use.

Revocation

The annulment or cancellation of an instrument, act or promise by one doing or making it.

Sale

The transfer of title to goods from the seller to the buyer for a consideration called the price.

Secret Partner

Partner active in a business unknown to the public.

Service Contracts

The contracting of services rather than goods.