Tag: Legal Terms

A B C D E F G H I J K L M N O P R S T U

Claytons Case

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Clayton”s Case: This English case established a presumption that money withdrawn from an account is presumed to be debited against the money first deposited (first in, first out).


Collusion

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Collusion: Illegal and usually secret agreement between two or more people to deceive a court or defraud another person.


Common law

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Common law: Judge-made law which has developed over centuries, also referred to as “unwritten” law. Common law (as practised in Ireland, England and the USA) is often contrasted with civil law systems (such as in France or Germany) where laws are set down in a written code.


Company

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Company: Legal entity which permits a group of shareholders to create an organization to pursue set objectives. A company may have legal rights which are usually reserved for individuals, such as the power to sue and be sued, own property, hire employees or lend and borrow money. The main advantage of a company structure is that it gives shareholders a right to participate in profits (through dividends) without any personal liability.


Consideration

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Consideration: Consideration has been defined as “some right, interest, profit or benefit accruing to the one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other”. Under common law, any binding contract must have some consideration, no matter how small. The courts will not normally inquire into the sufficiency of the consideration a “peppercorn rent” would be sufficient.