Professional Documents
Culture Documents
Business Law Glossary Terms
Business Law Glossary Terms
A
abatement
absolute privilege
abuse of power
acceleration clause
a contractual term that comes into effect when there is a failure to make
an instalment payment and which requires that the entire debt plus
expenses be paid
acceptance
accord
accounting
that any profits made from wrongdoing be paid over to the victim
accounts receivable
actual authority
adjusters
administrative law
the rules and regulations governing the function and powers of the
administrative tribunals
specialized dispute adjudication forums created by statute, that have been
adverse possession
a right to actual possession, which can be acquired by non-contested use
of the land
affidavit
workplace
agency
the service an agent performs on behalf of a principal
agency agreement
an agreement creating an agency relationship between principal and
agent
agency by necessity
consent to act as an agent that is implied when there is an urgent reason
agency shop
agent
a person authorized to represent or act on behalf of a principal in
dealings with third parties
agreement to sell
anticipatory breach
apparent authority
authority as suggested to a third party by the conduct of a principal; may
exist even when there is no actual authority
appeal
a formal process whereby a higher court will re-examine a decision made
by a lower court
arbitration
the submission of parties in a dispute to having an arbitrator make a
binding decision on their claims
arbitrator
a panel or other third party that has been given the authority to make a
binding decision on a dispute between parties
articles of association
internal regulations setting out the procedures for governing a
corporation in a registration jurisdiction
articles of incorporation
a method of incorporating based on a US approach and used in some
jurisdictions in Canada
assault
a deliberate verbal or physical threat; an action that makes a person fear
physical interference
assignment
assignment in bankruptcy
the voluntary transfer of a debtor’s assets to a trustee in bankruptcy so
attachment
under the Personal Property Security Act, the situation in which value has
been given pursuant to the contract, giving the creditor a claim against
the assets used as security if there is a default by the debtor
attachment of debt
a court order that monies owed to the judgment debtor (defendant) by
third parties be paid into court and applied toward judgment debts; also
known as garnishment
auditor
a party responsible for ensuring that an organization’s financial
statements have been properly prepared
authority
the right or power to act or to make a decision
B
bailee
the person acquiring possession of personal property in a bailment
bailment
temporary possession by one person of chattels owned by another
bailor
the owner giving up possession of property in a bailment
balance of convenience
determination of who will suffer the greatest injury if the damage were
allowed to continue
balance of probabilities
the burden of proof in civil matters; the person making the claim must
bankruptcy through a court order obtained by a creditor, and who has not
been discharged from bankruptcy
bankruptcy
bankruptcy order
a statutory assignment of a debtor’s assets to a trustee in bankruptcy
bargaining agent
bargaining unit
battery
evidence to convince the court that the accused committed the crime
beyond a reasonable doubt; the accused will be found “not guilty” if there
bias
an obligation
bilateral discharge
agreement by both sides to terminate the contract or to disregard a term
of the contract
bill
bill of exchange
bill of lading
designated place
bill of sale
an innocent third party who has paid a fair price for goods under claim by
a creditor
bond
a share interest in the indebtedness of a corporation; often used
breach of contract
failure to live up to the terms of a contract
breach of trust
brokers
persons engaged, for a fee, to negotiate a contract for another; a party
construction process
building scheme
injury would have occurred had it not been for the act of the defendant
C
canon or church law
the legal system of the Catholic Church, from which common law drew
principles relating to families and estates
capacity
is sometimes limited by law as is the case, for example, with minors, the
insane, the intoxicated, aliens, bankrupts, and Indians
causation
the fact of being the cause of something happening
caveat emptor
“let the buyer beware”; a principle that the purchaser must examine,
certificate of title
conclusive evidence as to the ownership of a property
certified cheque
a means of transferring funds by cheque where payment is, in effect,
certiorari
chattel mortgage
a loan for which a creditor provides credit to the debtor, securing the loan
chattels
check-off provision
a provision in a collective agreement whereby employees agree to have
cheque
chose in action
sales contracts in which one of the parties has been designated as being
responsible for paying the costs involved in the shipping the goods as
circumstantial evidence
the legal system used in most of Europe based on a central code, which is
a list of rules stated as broad principles of law that judges apply to the
cases that come before them
civil litigation
the process of one party’s suing another in a private action, conducted in
a trial court
class action
class proceeding
clean hands
closed shop
a workplace where only workers who are already members of the union
can be hired
sales contracts in which the seller maintains the proprietary rights or title
as well as control over the possession of those goods until they are
a formal statement that sets out the values and standards of business
practices of an organization
co-insurance clauses
requirements that the insured bear some risk
collateral
goods or property used to secure a debt
collateral contract
written contract
collective bargaining
decisions
the three historical English courts (the Court of Common Pleas, the Court
of King’s Bench, and the Exchequer Court), where in theory law was
discovered in the customs and traditions of the people
common shareholders
holders of common shares who do not have any preferential rights or
privileges
common shares
conditional sale
a sale in which the seller provides credit to the purchaser, holding title
until the goods are paid for
conditions
major terms of a contract
condition precedent
a condition under which the obligations of a contract will begin; also
called “subject-to” clause
condition subsequent
a condition under which the obligations of a contract will end
Confederation
the process that united the British colonies in North America as the
Dominion of Canada in 1867
confidential information
private information, the disclosure of which would be injurious to a
conflict of laws
consent
permission or assent to conduct that would otherwise constitute a tort
consideration
an element of a valid contract; the price one is willing to pay for the
promise set out in the offer
conspiracy to injure
the coordinated action of two or more persons using illegal or improper
methods to harm the business or other interests of another
constructive dismissal
unilaterally demoting or changing the duties of an employee, contrary to
constructive trust
a trust inferred by the courts to benefit a third party to a contract
consumer transactions
purchases by individuals of goods or services for personal use and not for
resale or for business purposes
contingency fee
a fee paid to a lawyer that is based on a percentage of the sum recovered
by the client
continuing guarantee
a provision in a guarantee allowing the creditor to advance further funds
without affecting the obligation of the guarantor to pay in the event of
default
continuing trespass
contract
contributory negligence
a failure to take reasonable care, which contributes to the injury
complained of
control test
a test of whether an employment relationship exists based on whether the
person being paid for work is told how, when, and where to do it
conversion
intentional appropriation of the goods of another person for the
cooling-off period
a statutorily defined period during which purchasers in door-to-door
sales may change their minds and rescind a contract
cooperative
an independent legal entity composed of members holding shares in it; a
copyright
control over the use and reproduction of the expression of creative work;
corporate myth
corporation
a business organization that is a separate legal entity from its owners, the
shareholders
counterclaim
a statement of claim by the defendant alleging that the plaintiff is
responsible for the losses suffered and claiming back against the plaintiff
counteroffer
a new offer, the proposal of which rejects and terminates the offer
available until then
Court of Chancery
a court administering equity and proceeding according to the forms and
principles of equity; sometimes referred to as the Court of Equity
Court of Equity
a court administering equity and proceeding according to the forms and
crimes
wrongs that affect society as a whole and are punishable by the state
cyber libel
D
damages
monetary compensation to a victim
debenture
an acknowledgment of debts by a corporation normally involving more
than one creditor; often used interchangeably with “bond,” but whereas a
bond is typically secured against a specific asset, a debenture may be
unsecured or secured by a floating charge against inventory
deceit this tort involves
declaration
declaratory judgment
a declaration by the court as to what the law is in any matter brought
before it
deed of conveyance
a document transferring an interest in property
deeds of settlement
contracts used historically for setting up a company
defamation
a derogatory, false statement published to a person’s detriment
delegation
entrusting someone else to act in one’s place; an agent normally cannot
delegate his responsibilities to someone else
delivery up
an order directing the defendant to deliver all copies of the infringing
deposit
money prepaid with the provision that the funds are to be forfeited in the
detinue
a wrongful retention of goods, that may have been legally obtained but
direct sales
sales made to consumers at their dwellings or places of business; also
disbursements
discharge by agreement
discovery
discovery of documents
pre-trial inspection of any document that is held by the other party and
may be used as evidence
distress
seizure by a landlord of any property left by a tenant and holding it until
the rent is paid or selling it to pay rent owing
dividend
a payment to shareholders out of corporate profits
Division I proposal
an alternative to bankruptcy, created by the Bankruptcy and Insolvency Act,
whereby the debtor secures some time to reorganize his affairs and make
a proposal for partial payment that will satisfy his creditors; if the
creditors reject the proposal, the insolvent debtor is deemed to have
made an assignment in bankruptcy from the day of the meeting of the
dominant tenement
door-to-door sales
dower rights
down payment
a portion of the purchase price paid to the seller at the time of sale
drawer
the person creating the negotiable instrument
due diligence
doing everything reasonable to avoid a problem leading to legal liability
duress
force or pressure to enter into a contract
duty
duty of care
E
easement
the right of a person other than the owner to use a portion of private
property
employee
a person who has agreed to perform specified services for another, the
employer, in exchange for payment.
employers’ organizations
bargaining agents representing groups of employers
employment equity
the correction of employment situations where there has been a tradition
of racial, gender or other imbalance
encryption coding
technological innovations to protect privacy and security on the internet
endorser
the person who signs the back of a cheque, usually assuming the
obligation to pay it if the drawee or maker defaults
equality rights
equitable estoppel
the principle that when a gratuitous promise to do something in the
equity
legal principles founded upon fairness, as developed in the Court of
Chancery to relieve the harshness of the common law; also the value left
in an asset after subtracting what the owner owes
equity of redemption
error of law
estate
all the property the owner has power to dispose of, less any related debt;
also, an interest in land; also, the property of a bankrupt given to the
trustee in bankruptcy
estate in land
the right to uninterrupted possession of land for a period of time. The
estoppel
ethics
a system of moral principles governing the appropriate conduct for an
individual or a group
evidence in writing
any document that provides information or proof
Alberta
executed contract
a fully performed contract; a contract at the stage when both parties have
performed or fulfilled their obligations
executive branch
the part of the government composed of the Queen acting through the
prime minister, cabinet, deputy ministers, and government departments
and officials; also known as the Crown
executory contract
a contract yet to be performed; a contract at the stage when an agreement
exemplary damages
damages in excess of the plaintiff’s actual losses, intended to punish the
exemption clause
express authority
express contract
a contract in which the parties have expressly stated their agreement,
either verbally or in writing
F
fair comment
a defence available when defamatory statements are made about public
figures or works put before the public
fair dealing
use of copyrighted material (as permitted under Canadian law) for the
purposes of research or private study, criticism or review, or news
reporting
fair hearing
a hearing conducted in accordance with the rules of procedural fairness;
false imprisonment
holding people against their will and without lawful authority
fee simple
the highest interest in land, equivalent to ownership; an estate granting
possession for an infinite time
fidelity bond
an employer’s insurance against an employee’s wrongful conduct
fiduciary duty
a duty to act in the best interests of another; such duty may arise between
directors and officers and the corporation they serve, between business
associates including senior employees and their employer, between
agents and their principals, and between partners, also called utmost good
faith
firm
a partnership
fixed fee
a predetermined fee paid to a lawyer for completing a specific task
fixture
a thing attached to land or to a building or to another fixture attached to
the land
floating charge
a security not fixed on any particular assets until default or some other
specified event
foreclosure
a court process ending the mortgagor’s right to redeem
forfeiture
forfeiture rule
the principle that a criminal should not be permitted to profit from a
crime
formal contract
an agreement under seal
franchising
arrangements based on contracts of service and the supply of products
between larger and smaller units of one organization
fraud
the tort of intentionally or recklessly misleading another person or
making statements without belief in their truth
fraudulent misrepresentation
misleading (false) words made knowingly, without belief in their truth, or
recklessly, causing injury
fraudulent preference
fraudulent transfer
a debtor’s transfer of property in an attempt to keep it out of the hands of
creditors; not a valid sale at a fair price to an innocent third party
freedom of contract
the parties to a contract are generally not restricted as to the terms of
their contractual agreements
frustration
interference with a contract by some outside, unforeseen event that
full disclosure
the obligation to reveal all relevant details of a transaction
fundamental breach
fundamental freedoms
basic rights enumerated in the Canadian Charter of Rights and Freedoms,
including freedom of conscience and religion, of thought and belief, of
opinion and expression, and of assembly and association
fungibles
goods being of such a nature that one part or quantity may be replaced by
another equal part or quantity of similar quality
G
garnishee
person owing money to a judgment debtor
garnishment
a court order that monies owed to the judgment debtor(defendant) by
third parties be paid into court and applied toward judgment debts; also
known as attachment of debt
general damages
compensation for future pecuniary losses and incalculable losses such as
pain and suffering
general partner
good faith
acting with honesty and integrity
goodwill
a business’s reputation and ongoing relations with customers and product
identification
goods
tangible, movable personal property that can be measured and weighed;
also known as chattels
gratuitous promise
grievance process
a procedure for settling disputes arising under a collective agreement
guarantee
guarantor
a person assuming obligation to pay if the debtor does not
H
holdback
a specified percentage that a person owing funds on a construction
contract must retain for a specified period to protect against claims made
by the suppliers of goods and services
holding corporation
a corporation that owns shares in other corporations
homestead rights
rights giving a spouse a claim to a substantial portion of family property
I
illegal consideration
a promise to commit an unlawful act or to do something against public
policy, which is not valid consideration and will not be enforced by a
court
illegal contract
a contract that is void because it involves the performance of an unlawful
act
implied authority
when the authority of the agent is implied from surrounding
circumstances, such as the position or title given (by the principal) to the
agent
implied contract
an agreement inferred from the conduct of the parties
in-camera hearings
part of a trial proceeding that is closed to the public
in good faith
a characteristic of bargaining that makes every reasonable effort to reach
an agreement
indemnity
a primary obligation of a third party to pay a debt along with the debtor
independent contractor
infants
persons under the age of majority; also known as minors
injunction
a court order to stop some offensive conduct or to do something to
remediate wrongful conduct or to not do something in the future
injurious falsehood
defamation with respect to another’s product or business; also known as
product defamation or trade slander
innocent misrepresentation
a false statement made honestly and without carelessness by a person
innuendo
an implied statement that is detrimental to another
insanity
when a person cannot understand the nature or consequences of his acts
insider knowledge
information that affects share pricing that is not publicly known;
directors, officers, and large shareholders, among others, cannot profit by
improperly using confidential knowledge about the corporation
insolvency
inability of a person to pay her debts as they become due
insurable interest
a real and substantial interest in specific property or in someone’s life
insurance agents
persons acting on behalf of an insurer to handle policies
intellectual property
personal property in the form of ideas and creative work
intention
an element of a valid contract; the parties must objectively intend for an
agreement to be legally binding
interest dispute
interim agreement
a binding contract that will subsequently be put into a more formal
document; usually referred to as an agreement of purchase and sale in a real
estate transaction
interlocutory injunction
a court order issued before a trial to stop an ongoing injury
interpretation statute
a statute that directs the court to interpret legislation in a specific way
intimidation
a threat to perform an illegal act that is used to force a party to act against
invitation to treat
an invitation to engage in the bargaining process
invitee
a person coming on a property for a business purpose
involuntary assignment
assignment of rights that takes place involuntarily, as in the cases of death
and bankruptcy
issue estoppel
J
joint tenancy
joint venture
the collaboration of several businesses, usually to complete a major
project
jointly liable
under joint liability, all parties must be sued together; partners may face
judicial branch
the part of the government composed of courts and officers of the court
judicial review
judgment creditor
the person to whom a court awards damages or costs
judgment debtor
jurisdiction
legal authority and scope of power; the Constitution Act, 1867 delegated
responsibility for matters to federal or provincial governments, thus
giving them distinct jurisdiction to create laws in those areas. Also refers
to the province whose courts have the right to hear and resolve a dispute
jurisdictional dispute
a disagreement over who has authority; in the labour context, a dispute
between two unions over which one should represent a group of
employees, or over which union members ought to do a particular job
just cause
a valid reason to dismiss an employee without notice
justification
the truth of a statement, applied as a defence to a defamation action
L
laches
undue delay; neglect or omission to assert a right or claim
law rules
made by government or the courts that can be enforced by the courts or
law of equity
a system of law collateral to the common law, developed by the Court of
Chancery
law merchant
rules developed by the merchant guilds and the source of common law
relating to negotiable instruments such as cheques and promissory notes
law society
a self-governing body whose mandate involves regulating the legal
profession in the public interest; law societies set and enforce ethical and
professional standards for lawyers
lease
a secured arrangement whereby possession of the goods goes to the
lessee, while the title to the goods remains with the lessor
lease to purchase
a lease in which title to the goods is transferred to the lessee at the end of
leasehold estate
an interest in land that grants the tenant exclusive possession until a
specific date
legal aid
legal rights
basic rights enumerated in the Canadian Charter of Rights and Freedoms,
such as the right to life, liberty, and security of the person; and security
against unreasonable search and seizure or arbitrary imprisonment or
detention
legality
an element of a valid contract; the object and consideration of the
contract must be legal and not against public policy
legislation
letter of credit
a commitment by the importer’s bank that the price stated will be paid
upon presentation of documentation confirming delivery
letters patent
a method of incorporating used in some jurisdictions in Canada whereby
the government grants recognition to the company as a separate legal
entity
liability insurance
insurance covering loss caused by the negligence of oneself or one’s
employees
libel
the written or more permanent form of a defamatory statement
licence
a non-exclusive right to use property; revocable permission to use
another’s land
licensee
a person on property with permission but for his own purpose
lien
a claim registered against property, such as a mortgage; a charge giving
the creditor the right to retain what is in her possession until her
demands for payment are satisfied
life estate
an interest in land ending at death of the estate holder
limitation period
the period of time within which legal action must be taken
limited liability
liability is restricted to capital contributed; shareholders are shielded from
liability for the corporation’s debts
limited partner
a partner in a limited partnership whose liability is limited to the amount
of her investment
limited partnership
a partnership with general and limited partners
liquidated damages
lockout
an action in which the employer prevents employees from working
M
maintenance of membership
a requirement in a collective agreement that union members pay dues
and maintain their membership, though new employees need not join the
union
malicious prosecution
mandamus
a court order directing that a specific act be performed
mandatory retirement
forced retirement from employment, generally at 65 years
mediation
a discussion between the parties to a dispute that is facilitated by a
mediator in an effort to encourage and assist them in coming to an
agreement
mediator
a neutral third party who facilitates discussion between parties to a
dispute to encourage and assist their coming to an agreement; sometimes
referred to as a conciliator
memorandum of association
the constitution of a corporation in a registration jurisdiction
merchantable quality
freedom of goods from defects that, if known, would impact the price
minors
persons under the age of majority ; also known as infants
misfeasance
wrongful conduct
misrepresentation
an untrue statement of fact; an incorrect or false representation
mistake
an error about some aspect of a contract that destroys consensus
mitigate
to lessen a loss, for example, by victims of a breach, who have a duty to
take all reasonable steps to minimize losses suffered
moral rights
an author’s right to prohibit others, including any new owner of a creative
work, from distorting or degrading it, associating the work with particular
causes or entities, and the right of attribution (to be named)
mortgage
a means of securing loans; title of property is held by the moneylender as
security in some jurisdictions; in other jurisdictions, a mortgage is simply
a charge against title
N
necessaries
the essential goods or services required to function in society, such as
food, clothing, and shelter
negligence
an unintentional, careless act or omission that causes injury to another
negligent misrepresentation
an incorrect or false statement of fact, made without the required care,
that misleads the recipient thus causing injury
negligent statements
misleading, erroneous statements, made without adequate care, that
cause a foreseeable plaintiff harm
negotiable instruments
substitutes for money that bestow unique benefits; vehicles for
conveniently transferring funds or advancing credit
negotiation
direct communication between the parties to a dispute in an effort to
resolve the problems without third-party intervention; transferring
negotiable instruments to third parties
netiquette
a code of conduct for online activities
non-disclosure
a failure to reveal facts; if a duty to disclose exists, silence may constitute
misrepresentation
nonfeasance
non-pecuniary damages
damages based on non-monetary factors such as pain and suffering
non-profit society
a separate legal entity with different procedures of incorporation and
liabilities of its members than corporations
novation
the creation of a new contract through the substitution of a third party for
one of the original parties to a contract by the consent of all
O
offer
a tentative promise to do something if another party consents to do what
the first party requests
offer to settle
a formal offer by either party to modify or compromise its claim to settle
the matter before trial, refusal of which offer may affect costs
official receiver
an officer of the court, appointed by the Superintendent of Bankruptcy,
for each bankruptcy district
operating lease
a lease in which the goods are returned to the lessor at the end of the
lease period
oppression action
an action against the directors who have allegedly offended the rights of
creditors or minority shareholders
option agreement
organization test
a test used to establish whether a worker is an employee or independent
contractor; examines whether the worker is providing services integral to
the organization’s business
P
paramountcy
the principle that when a matter is addressed by both valid federal and
provincial legislation and there is a conflict, the federal legislation takes
precedence
par-value shares
a share with a stated value at issuance (most shares are now no par value)
parliamentary supremacy
the principle that the primary law-making body is Parliament or the
provincial legislatures in their respective jurisdictions, and that statutes
take priority over the common law
parol contract
a contract that may be verbal or written but is not under seal; also called
a simple contract
partnership
past consideration
something completed before an agreement is made; it is not valid
consideration
patent
pay equity
a principle (or statute) requiring equal pay for work of equal value
perfection
protection of a secured creditor’s claim, either by registering the secured
obligation or by taking possession of the collateral
performance
completion by both parties of the terms of a contract
periodic tenancy
automatically renewing tenancy with no specific termination date
permanent injunction
a court order prohibiting offending conduct
personal guarantee
a guarantee of payment for another’s obligation
personal property
tangible, movable goods (chattels) and intangible claims (choses in
action)
picketing
job action during a legal strike when employees circulate at the periphery
of the job site to persuade others not to do business with the struck
employer
pleadings
the documents used to initiate a civil action, including the statement of
claim, the statement of defence and counterclaim, and any clarification
associated with them
pledge
an item that a creditor (like a pawnbroker) takes possession of as security
postbox rule
a principle that a mailed acceptance is effective when and where it is
dropped into a mailbox
power of attorney
an agency agreement in writing and under seal
precedent
an earlier court decision; in a common law system, judges are required to
follow a decision made in a higher court in the same jurisdiction where
the facts are similar
pre-emptive right
the right of a shareholder to buy new shares in the same proportion as
preferred creditors
creditors who, by legislation, must be paid before other unsecured
creditors
preferred shareholders
holders of preferred shares who may have a right to vote arising if
dividends are not paid
preferred shares
shares giving the shareholder preference over other classes of shares; that
preference often pertains to the payment of dividends
prerogative writ
one of the remedies the court may apply if it finds that an administrator
has acted beyond his jurisdiction, made an unreasonable decision, or not
followed the rules of natural justice
pre-trial conference
a meeting of the parties, their lawyers and a judge to attempt to settle any
or all of the issues in the proceeding
prima facie
a judicial finding that circumstantial evidence establishes a case “on the
face of it,” which prevails until contradicted and overcome by evidence to
the contrary
principal
the person who authorizes an agent to represent him or her
principles of fundamental justice
principles set by tradition and convention that protect the right to a fair
hearing by an impartial decision maker acting in good faith to implement
a valid law
priority
when there are two or more creditors, the one entitled to be paid first has
priority; for example, a registered lien usually has first claim (over other
interests) to goods used as security
privacy
private law
the rules that govern our personal, social, and business relations, which
are enforced by one person’s suing another in a private or civil action
private nuisance
the use of property in such a way that it foreseeably interferes with a
neighbour’s enjoyment of her property
privative clause
privity of contract
a principle that contract terms apply only to the actual parties to the
contract
probate courts
specialized courts dealing with wills and estates; also known as surrogate
courts
procedural fairness
rules of natural justice that a hearing must follow
procedural law
the law determining how the substantive laws will be enforced—for
product defamation
defamation with respect to another’s product; also known as injurious
falsehood or trade slander
product liability
the legal liability of the manufacturer or vendor to compensate buyers,
users, and others injured because of product defects
professional associations
organizations empowered to regulate educational qualifications and
professional standards for their members; they may also have disciplinary
powers over members
professional liability
liability owed by persons failing to live up to the standard expected of a
reasonable member of a group with special expertise
promissory estoppel
the principle that when a gratuitous promise to do something in the
future causes a person who relies on that promise to incur an expense,
the promisor will not be allowed to enforce other contractual rights that
are inconstant with that promise; the promise can only be used as a
defence by the promisee; also known as equitable estoppel
promissory note
a promise to pay the amount stated on the instrument
promoter
a person who participates in the initial setting up of a corporation or who
assists the corporation in making a public share offering
proof of claim
a document filed with the trustee in bankruptcy establishing the validity
of a creditor’s claim
prospectus
a public document disclosing relevant information about a corporation
proximity
nearness in place, time, occurrence, or relation
proxy
when shareholders designate another person to vote on their behalf at an
annual general meeting
public domain
the category of works that are no longer copyrighted and may be used by
anyone
public law
the public good; law concerning the government and individuals’
relationships with it, including criminal law and the regulations created
by government agencies
public nuisance
unreasonable interference with public property or creating conditions
that negatively affect a community or a considerable number of people
public policy
the public good; some acts, although not illegal, will not be enforced by
the courts because they are socially distasteful (against public policy)
punitive damages
damages in excess of the plaintiff’s actual losses, intended to punish the
wrongdoer for outrageous or extreme behaviour; also known as
exemplary damages
quantum meruit
(“as much as is deserved”) a reasonable price paid for requested services
quasi-contract
a contractual relationship involving a request for goods and services
where there is no agreement on price before the service is performed;
courts impose an obligation to pay a reasonable price (quantum meruit) in
these situations
quiet possession
a condition that the seller, or anyone claiming through the seller, will not
interfere with the buyer’s use and enjoyment of the property
R
Rand formula
an option in a collective agreement enabling employees to retain the right
not to join the union, though they are still required to pay union dues;
also known as an agency shop
ratification
when the majority agrees with the terms of a collective bargain; when a
principal confirms a contract entered into by his agent
real property
land, buildings attached to the land, and items called fixtures, that is,
items that are attached to the land or to a building or to another fixture
attached to the land
reasonable notice
length of notice to be given to an employee to terminate an employment
contract of indefinite term; determined with reference to length of service
and the nature of the employee’s position, among other factors
receivership
a proceeding in which a receiver is appointed for an insolvent
corporation, partnership, or individual to take possession of its assets for
recognition dispute
a dispute arising between a union and employer while the union is being
organized
rectification
a correction, by the court, of the wording of a mistake in a contract
referral selling
a type of sales practice in which the purchaser supplies a seller with a list
of friends or acquaintances and receives a benefit when sales are made to
those people
registration
registration system
a means of registering and tracking property deeds
regulations
supplementary rules passed under the authority of a statute and having
the status of law
regulators
government agencies including ministries, departments, boards,
commissions, agencies, tribunals, and individual bureaucrats at the
remainderman
a third party with the right to the remainder of the fee simple after the
death of a life tenant
remoteness test
determining whether the damages were too far removed from the original
representative action
a lawsuit where certain shareholders are given the right to launch a civil
action against the directors on behalf of an injured corporation; also
called a derivative action
repudiation
an indication by one party to the other that there will be a failure to
honour the contract (the expression of which can be expressed or
implied)
rescission
amounts to the undoing of a contract, returning the parties to the
positions they were in before the contract
restrictive covenant
in property law, a condition imposed by the seller as to what the
purchaser can use the land for; in employment law, a commitment not to
work in a certain geographical area for a designated period of time
retainer
a deposit paid by a client to a lawyer before the lawyer commences work
on behalf of the client
reverse discrimination
prejudice or bias exercised against a person or class to correct a pattern of
discrimination against another person or class
reversionary interest
the right of the original owner to retake possession of property upon the
death of the life tenant
revocation
withdrawal of an offer before acceptance (must be communicated to the
offeree)
right of salvage
an insurer’s right after paying the insured to sell damaged or recovered
goods to recover losses
right of way
a type of easement that allows the crossing of another’s land
right to redeem
after a creditor has taken possession of collateral, the right of the debtor
to reclaim it on payment of any money owing
rights dispute
riparian rights
the common law right given to people living near rivers and streams to
have the water come to them in undiminished quantity and quality
risk
potential loss from destruction or damage to goods, injury, or other
eventuality
royal assent
the final approval of the representative of the British Crown by which a
bill becomes law in Canada
rule of law
an unwritten convention inherited from Britain that recognizes that
although Parliament is supreme and can create any law considered
appropriate, citizens are protected from the arbitrary actions of the
government
rules of evidence
rules governing the kinds of evidence that will be accepted by the courts
S
satisfaction
a substitute in consideration accepted by both parties
secondary picketing
picketing by striking employees not just of their own workplace but also
of other locations where the employer carries on business
secured creditor
a creditor who has a claim on property of the debtor, giving him priority
on that property over other creditors
secured transaction
a collateral right to debt giving the creditor the right to take back the
goods or intercept the debt owing used as security in the event of default
securities commission
a provincial agency that serves as a watchdog for the stock market
seizure
when the court authorizes property of the defendant to be seized and
self-defence
the right to respond to an assault with as much force as is reasonable in
the circumstances
self-induced frustration
frustration arising when one of the parties to a contract causes or fails to
prevent a frustrating event; treated as a breach of contract
seller’s lien
a seller who holds the goods has a lien against a defaulting purchaser
sentencing circles
meetings to suggest sentences in cases involving Aboriginal offenders and
victims
separate legal entity
the principle that a corporation exists separately from the people who
created it
servient tenement
the property subject to an easement
settlement
transfer of assets where nominal or no consideration is involved
severally liable
under several liability, each partner can be sued separately
severance
an owner’s removal of chattel that he has affixed; separation or division
of joint ownership; action by one of the co-owners that is inconsistent
with joint tenancy
share
the means of acquiring funds from a large number of sources to run a
corporation; an interest in a corporation held by an investor
shared mistake
the same mistake made by both parties to a contract
shareholder agreement
simple contract
a written or verbal contract not under seal; also called a parol contract
slander
spoken defamation
sole proprietorship
an individual carrying on business alone
solicitor–client privilege
the duty of the lawyer to keep the information provided by the client
confidential
sophisticated client
a person who understands and appreciates the importance of the law and
the role of a lawyer in making good decisions
special damages
monetary compensation awarded by a court to cover actual expenses and
calculable pre-trial losses
specific performance
statement of defence
statutes
law in the form of legislation passed by Parliament
statutory assignment
an assignment that meets certain qualifications and under which the
assignee can enforce a claim directly without involving the assignor
statutory damages
a new remedy enabling a court to award damages that it “considers just”
under the circumstances, without requiring proof of damage or lost
profits
statutory easements
easements giving utilities or other bodies rights to run power or sewer
lines across private property and to enter the property to inspect and
maintain them
stoppage in transit
the seller’s right to stop the shipment during transit in event of default
strict liability
liability even in the absence of fault
strike
sublet
a lease executed by the lessee of land or premises to a third party for a
shorter term than that which the lessee holds
subrogation
the right of the insurer upon payment to take over the rights of the
insured in relation to whoever caused the injury
substantial performance
performance of a contract in all but a minor aspect of it
substantive law
the law establishing both the rights an individual has in society and also
the limits on her conduct
summary procedures
an arrangement allowing a court to make a decision based on affidavit
evidence
Superintendent of Bankruptcy
the government official appointed by the federal government who is
responsible for the administration of bankruptcy across Canada
superior court
the highest trial court in a province or territory
surety bond
insurance arranged in case a party to a contract fails to perform
surrogate courts
specialized courts dealing with wills and estates; also known as probate
courts
T
tenancy at sufferance
a situation in which a tenant fails to leave after a lease has expired and
owes compensation to the landlord
tenancy in common
ownership of land by two or more people with equal, undivided interests
in it
tender of performance
an unsuccessful (because it is rejected or prevented by the other party)
attempt by one of the parties to a contract to perform its obligations
under the contract
tort
an action that causes harm or injury to another person
trade secret
confidential information that gives a business competitive advantage
trade slander
defamation with respect to another’s product or business; also known as
injurious falsehood or product defamation
trademark
any terms, letters, numbers, symbols, designs, colours, sounds, or
combination of these, that identifies business services or products and
distinguishes them from those of a competitor
trespass to chattels
direct, intentional interference with another’s rights to possess his
personal property
trespass to land
an unauthorized, intentional intrusion upon or direct breach of the
boundaries of another’s land
trespass to person
intentional physical interference with another person; also known as
assault and battery
trespasser
a person who intentionally and without consent or privilege enters
another’s property
trust
a provision in equity whereby one person transfers property to a second
person obligated to use it to the benefit of a third person
trustee in bankruptcy
the licensed professional appointed to administer the estate of a bankrupt
for the benefit of the creditors
truth
the accuracy of a statement, applied as a defence to a defamation action;
also known as the defence of justification
U
umbrella liability
a package of several kinds of insurance
unconscionable transaction
an equitable principle allowing courts to set aside a contract in which a
party in a superior bargaining position took advantage of the other party
and the consideration was grossly unfair
undisclosed principal
a principal whose identity is concealed from the third parties with whom
the agent is dealing; the rights and obligations of the parties depend on
whether the agent makes it clear that she is representing an undisclosed
principal rather than operating on her own behalf
undue influence
pressure from a dominant, trusted person that makes it impossible for a
party to bargain the terms of a contract freely
unenforceable contract
an otherwise binding contract that the courts will not enforce, such as a
contract that does not satisfy the Statute of Frauds
unilateral contract
a contract formed when one party performs what has been requested by
the other party; there is a promise followed by an act, but not an
exchange of promises
unilateral mistake
a mistake made by only one of the parties about the terms of a contract
union shop
a workplace where new employees must join the union
unjust enrichment
a windfall that one party to a contract stands to make at the expense of
the other
unlimited liability
the liability of the sole proprietor or the partners for all debts incurred by
the business to the extent of their personal resources
V
vacant possession
an obligation to deliver possession of vacant premises to a tenant at the
beginning of a lease period
valid contract
an agreement that is legally binding on both parties
vicarious liability
liability of an employer for injuries caused by employees while carrying
out their employment duties
vicarious performance
performance by another designated person of the obligations under a
contract rather than the actual contracting party
void contract
voidable contract
an agreement that has legal effect but that one of the parties has the
option to end
W
warranties
minor terms of a contract
without prejudice
words that, when used during negotiation, are a declaration that
concessions, compromises, and admissions made by a party cannot be
used against that party in subsequent litigation
work stoppages
strikes (initiated by employees) and lockouts (initiated by employers)
work to rule
job action in which employees perform no more than what is minimally
required so as to pressure an employer
writ of summons
the written judicial order by which legal actions are commenced in some
jurisdictions
wrongful dismissal