GLOSSARY

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

I

identification theory A theory specifying that a corporation is liable when the person committing the wrong is the corporation?s directing mind.

illegal contract A contract that cannot be enforced because it is contrary to legislation or public policy.

implied term A provision that is not expressly included in a contract but that is necessary to give effect to the parties? intention.

improvident sale A sale of the borrower?s assets by the lender for less than fair market value.

incompetence Lack of ability, knowledge, or qualification to perform employment obligations.

incomplete agreement An agreement that is not contractual because its content is not sufficiently comprehensive.

incorporator The person who sets the incorporation process in motion.

indefinite term contract A contract for no fixed period which can end on giving reasonable notice.

indemnification The corporate practice of paying litigation expenses of officers and directors for lawsuits related to corporate affairs.

indemnity The obligation on the insurer to make good the loss.

independent contractor A person who is in a working relationship that does not meet the criteria of employment.

industrial design Ornamentation or shape of functional objects.

injurious or malicious falsehood The utterance of a false statement about another?s goods or services that is harmful to the reputation of those goods or services.

innominate term A term that cannot easily be classified as either a condition or a warranty.

insider A person who has a special relationship with a corporation.

insider trading Transactions in shares based on confidential information of a material nature.

insolvent Unable to pay debts or having liabilities in excess of assets; under the Bankruptcy Act, a person or company that owes more than $1000 and is unable to meet or has ceased paying financial obligations as they fall due, or has insufficient assets to meet obligations.

inspector A person appointed by a creditor to act on his or her behalf and supervise the actions of the trustee.

insurable interest A financial stake in what is being insured.

insurance adjuster One who investigates and evaluates insurance claims.

insurance agent One who acts for an insurance company in selling insurance.

insurance broker One who provides advice and assistance to the insured in acquiring insurance.

insurance policy A contract of insurance.

insured One who buys insurance coverage.

insurer A company that sells insurance coverage.

intangible property Personal property, the value of which comes from legal rights.

intellectual property The results of the creative process.

intentional tort A harmful act that is committed on purpose.

interference with contractual relations Incitement to break the contractual obligations of another.

interim receiver The official appointed to take care of the estate in the period between the filing of the petition and the making of the receiving order.

interlocutory injunction An order to refrain from doing something for a limited period of time.

international law Law that governs relations between states and other entities with international legal status.

invitation to treat An expression of willingness to do business.

invitee Any person who comes onto the property to provide the occupier with a benefit.

J

joint and several liability Responsibility together and individually.

joint liability Full responsibility for all debts.

joint tenancy Co-ownership whereby the survivor inherits the undivided interest of the deceased.

joint venture A grouping of two or more businesses to undertake a particular project.

judges Those appointed by federal and provincial governments to adjudicate on a variety of disputes, as well as to preside over criminal proceedings.

judgment debtor The party ordered by the court to pay a specified amount to the winner of a lawsuit.

judiciary A collective reference to judges.

jurisdiction The power that a given level of government has to enact laws.

just cause Employee conduct that amounts to a fundamental breach of the employment contract.

L

Labour Relations Board A body that administers labour relations legislation.

landlord The owner of land that is leased.

land titles system The system of land registration whereby the administrators guarantee the title to land.

lapse The expiration of an offer after a specified or reasonable period.

law The set of rules and principles guiding conduct in society.

law firm A partnership formed by lawyers.

law of agency The law governing the relationship where one party acts on behalf of another.

lawyer A person who is legally qualified to practise law.

lease The contract that transfers control of land from the landlord to the tenant in exchange for the payment of rent.

legal capacity The ability to make binding contracts.

legal risk A business risk with legal implications.

legal risk management plan A comprehensive action plan for dealing with the legal risks involved in operating a business.

legislative branch The branch of government that creates statute law.

letter of commitment A document that is provided by a bank to a borrower and sets out the terms of a loan.

letter of credit A written promise by a buyer’s bank to a seller’s bank to pay the seller when specified conditions are met.

letters patent The incorporating document and constitution of a corporation in Quebec and Prince Edward Island.

liability Legal responsibility for the event or loss that has occurred.

liberalism A political philosophy that elevates individual freedom and autonomy as its key organizing value.

licence Consent given by the owner of rights to someone to do something that only the owner can do.

licensee Any person whose presence is not a benefit to the occupier but to which the occupier has no objection; also, the holder of a licence.

lien The right to retain possession of personal property until payment for service is received.

limitation of liability clause A term in a contract that sets a monetary limit on the financial responsibility for failure to perform as agreed; also, a term of a contract that limits liability for breach to something less than would otherwise be recoverable.

limitation period The time period specified by legislation for commencing legal action.

limited liability Responsibility for obligations restricted to the amount of investment.

limited liability partnership (LLP) A partnership in which the partners have unlimited liability for their own malpractice but limited liability for other partners’ malpractice.

limited partnership A partnership in which the liability of some partners is limited to their capital contribution.

liquidated damages clause A term of a contract that specifies how much one party must pay the other in the event of breach.

litigation The process involved when one person sues another.

M

marketing law All areas of law that influence and direct the creation, distribution, promotion, and pricing of goods, services, or ideas.

mediation A process through which the parties to a dispute endeavour to reach a resolution with the assistance of a neutral person.

mediator A person who helps the parties to a dispute reach a compromise.

memorandum of association The incorporating document and constitution of a corporation in Nova Scotia and British Columbia.

misrepresentation A false statement of fact that causes someone to enter a contract.

mistake An error made by one or both parties that seriously undermines a contract.

money laundering The false reporting of income from criminal activity as income from legitimate business.

moral rights The author’s rights to have work properly attributed and not prejudicially modified or associated with products.

mortgage A credit arrangement where land is security for the loan.

mortgagee The lender who receives the mortgage.

mortgagor The borrower who grants the mortgage.

multilevel marketing A scheme for distributing products or services that involves participants supplying them to other participants to earn a profit.

N

negligence A careless act or omission that causes harm to another.

negligent misstatement or misrepresentation Negligence that arises out of uttering a misleading statement with less than the appropriate standard of care.

negotiable instrument A document that meets the requirements for circulation without reference to other sources.

negotiation A process of deliberation and discussion used to reach a mutually acceptable resolution to a dispute; also, the process of transferring negotiable instruments from one person to another.

neighbour Anyone who might reasonably be affected by another’s conduct.

nonpecuniary damages Compensation for pain and suffering, loss of enjoyment of life, and loss of life expectancy.

novation The substitution of parties in a contract or the replacement of one contract with another.

NUANS report A document that shows the result of a search for business names.

nuisance Any activity on an occupier’s property that unreasonably and substantially interferes with the neighbour’s rights to enjoyment of his or her property.