Law Glossary

General Terminology

• Affidavit – A written statement of facts sworn under oath and notarized.
• Arbitration – A private dispute resolution process in which an independent arbitrator hears evidence and issues a binding decision.
• Burden of Proof – The obligation of a party to establish the facts necessary to support a claim or defense.
• Cause of Action – The legal grounds upon which a lawsuit is based.
• Complaint – The initial pleading filed by a plaintiff that sets forth the claims against a defendant.
• Damages – Monetary compensation sought or awarded for loss, injury, or harm.
• Discovery – The pretrial process in which parties exchange information, documents, and testimony relevant to the case.
• Due Diligence – A thorough investigation or review conducted before entering into a transaction or agreement.
• Fiduciary Duty – A legal obligation to act in the best interests of another party, such as a client, beneficiary, or business partner.
• Injunction – A court order directing a party to take or refrain from taking a specific action.
• Jurisdiction – The authority of a court to hear and decide a legal matter.
• Liability – Legal responsibility for actions or omissions that result in harm or loss.
• Mediation – A voluntary and confidential process in which a neutral mediator assists parties in attempting to resolve a dispute.
• Negligence – Failure to exercise reasonable care, resulting in injury or damage to another party.
• Plaintiff – The individual or entity that initiates a lawsuit.
• Statute of Limitations – The legal deadline for filing a lawsuit, which varies depending on the type of claim.
• Summary Judgment – A court ruling issued without a trial when there are no disputed material facts and one party is entitled to judgment as a matter of law.
• Subpoena – A court order requiring a person to testify or produce documents.
• Verdict – The final decision of a judge or jury resolving a case.

Real Estate

• Appraisal – An independent valuation of real property conducted to determine its fair market value.
• Broker Agreement – A contract between a property owner and a real estate broker outlining the broker’s duties, authority, and commission.
• Closing – The final stage of a real estate transaction at which documents are executed, funds are transferred, and ownership changes hands.
• Contract of Sale – A written agreement between buyer and seller setting forth the terms, conditions, and purchase price of a real estate transaction.
• Co-Op (Cooperative Apartment) – A form of ownership in which the buyer purchases shares in a corporation that owns the building and receives the right to occupy a specific unit.
• Condominium – A form of real estate ownership where individuals own their units outright and share ownership of common areas.
• Deed – A legal document that transfers ownership of real property from one party to another.
• Easement – A legal right allowing one party to use another party’s land for a specific purpose, such as access or utilities.
• Encumbrance – A claim, lien, or restriction affecting real property that may impact title or use.
• Escrow – Funds or documents held by a neutral third party until specified conditions of a transaction are satisfied.
• Foreclosure – The legal process by which a lender enforces its rights against property after a borrower defaults on a loan.
• Landlord–Tenant Law – Laws governing rental relationships, including leases, tenant rights, landlord obligations, and eviction procedures.
• Lien – A legal claim against property as security for payment of a debt or obligation.
• Mortgage – A loan secured by real property, typically used to finance the purchase or refinancing of real estate.
• Notice to Quit – A written notice requiring a tenant to vacate the premises or correct a lease violation within a specified time.
• Real Property – Land and any buildings or improvements permanently attached to it.
• Title – Legal ownership of real property, typically verified through a title search.
• Title Insurance – Insurance that protects property owners or lenders against losses resulting from defects or disputes in title.
• Zoning – Local laws and regulations governing how land may be used and developed.

Estate Planning

• Advance Directive – A legal document setting forth an individual’s health care preferences in the event they become incapacitated and unable to make decisions.
• Beneficiary – A person or entity designated to receive assets under a will, trust, insurance policy, or retirement account.
• Codicil – A legal amendment or supplement to an existing will that modifies, explains, or revokes certain provisions.
• Estate – The total property, assets, and liabilities owned by an individual at the time of death.
• Executor – The individual or institution appointed under a will to administer the estate and carry out its terms.
• Fiduciary – A person or entity legally obligated to act in the best interests of another, such as an executor, trustee, or agent under a power of attorney.
• Grantor / Settlor – The individual who creates and funds a trust.
• Guardian – A person appointed by a court or designated in a will to care for a minor or an incapacitated adult.
• Heir – A person entitled by law to inherit from an individual who dies without a valid will.
• Intestacy – The condition of dying without a valid will, in which case state law determines the distribution of assets.
• Living Trust (Revocable Trust) – A trust created during an individual’s lifetime to hold and manage assets, which can be amended or revoked and is often used to avoid probate.
• Per Stirpes – A method of inheritance distribution in which a deceased beneficiary’s share passes to their descendants.
• Power of Attorney – A legal document granting authority to another person to act on one’s behalf in financial, legal, or other specified matters.
• Probate – The court-supervised process of validating a will, administering an estate, and distributing assets to beneficiaries.
• Testamentary Trust – A trust created by a will that becomes effective upon the death of the testator.
• Trustee – The individual or institution responsible for managing and administering assets held in a trust for the benefit of beneficiaries.
• Will – A written legal document specifying how an individual’s property and assets are to be distributed upon death.

Personal Injury

• Assumption of Risk – A legal defense asserting that an injured person knowingly and voluntarily accepted the risk of harm associated with a particular activity.
• Comparative Negligence – A legal principle that reduces a plaintiff’s recovery by the percentage of fault attributed to them for the injury.
• Contingency Fee – A fee arrangement in which an attorney is paid only if the case results in a recovery, typically as a percentage of the amount obtained.
• Damages (Economic / Non-Economic) – Monetary compensation sought for losses resulting from an injury, including financial losses and non-economic losses.
• Defendant – The individual, business, or entity against whom a lawsuit is brought.
• Deposition – Sworn testimony taken outside of court, under oath, and recorded for use as evidence in litigation.
• Negligence – Failure to exercise reasonable care, resulting in injury or harm to another person.
• Premises Liability – Legal responsibility of a property owner or occupier for injuries caused by unsafe or defective conditions on the property.
• Product Liability – Legal responsibility of manufacturers, distributors, or sellers for injuries caused by defective or unreasonably dangerous products.
• Settlement – A negotiated resolution of a claim between parties without proceeding to trial.
• Statute of Limitations – The legal deadline for filing a personal injury claim. In New York, most personal injury claims must be filed within three years, subject to exceptions.
• Tort – A civil wrong that causes injury, harm, or loss, giving rise to legal liability.
• Wrongful Death – A legal claim brought when a death results from another party’s negligence, recklessness, or misconduct.

Business Law

• Articles of Incorporation – Documents filed with the state to formally create a corporation and establish its basic structure.
• Bylaws – Internal rules adopted by a corporation that govern management, operations, and decision-making.
• Capital Contribution – Money, property, or services contributed by an owner or investor to a business in exchange for an ownership interest.
• Dissolution – The formal legal process of closing a business entity and terminating its existence.
• Fiduciary Duty – The duties of loyalty, care, and good faith owed by officers, directors, managers, or partners to the business and its owners.
• Franchise Agreement – A contract granting a franchisee the right to operate a business using a franchisor’s brand, systems, and intellectual property.
• General Counsel – An attorney who provides ongoing legal advice and strategic guidance to a business across a range of matters.
• Indemnification – A contractual obligation requiring one party to reimburse another for losses, damages, or liabilities.
• Intellectual Property – Creations of the mind, including trademarks, copyrights, patents, and trade secrets, that are legally protected.
• Joint Venture – A business arrangement in which two or more parties collaborate on a specific project or enterprise while remaining separate entities.
• LLC (Limited Liability Company) – A business entity that combines limited liability protection with flexible management and pass-through tax treatment.
• Operating Agreement – The internal agreement among members of an LLC governing ownership, management, and financial rights.
• Partnership Agreement – A contract defining the rights, responsibilities, and profit-sharing arrangements among business partners.
• Shareholder Agreement – An agreement among shareholders of a corporation addressing governance, ownership transfers, and dispute resolution.
• Successor Liability – A legal doctrine under which a business acquiring another may, in certain circumstances, be held responsible for the predecessor’s liabilities.
• Trade Secret – Confidential business information that derives economic value from not being publicly known and is subject to reasonable efforts to maintain secrecy.
• UCC (Uniform Commercial Code) – A body of law governing commercial transactions, including sales of goods and secured lending.
• Winding Up – The final phase of dissolving a business, involving payment of debts, liquidation of assets, and distribution to owners.