Law Glossary
Affidavit – A sworn written statement of facts, signed and notarized.
Arbitration – A private dispute resolution process where an independent arbitrator hears evidence and issues a binding decision.
Burden of Proof – The obligation to prove one’s claim or defense in court.
Cause of Action – The legal basis for a lawsuit.
Complaint – The initial document filed by a plaintiff to begin a lawsuit, outlining the claims.
Damages – Monetary compensation awarded for losses or injuries.
Discovery – The pre-trial phase in which parties exchange information, documents, and testimony.
Due Diligence – A thorough investigation conducted before a transaction or agreement.
Fiduciary Duty – A duty to act in the best interests of another party, such as a client, beneficiary, or partner.
Injunction – A court order requiring a party to do or refrain from doing something.
Jurisdiction – The legal authority of a court to hear and decide a case.
Liability – Legal responsibility for one’s actions or omissions.
Mediation – A voluntary, confidential process where a neutral mediator facilitates settlement discussions.
Negligence – Failure to exercise reasonable care, resulting in harm to another person.
Plaintiff – The person or entity who initiates a lawsuit.
Statute of Limitations – The deadline for filing a lawsuit (varies by claim type).
Summary Judgment – A court decision made without a trial when facts are undisputed.
Subpoena – A court order requiring someone to testify or produce documents.
Verdict – The final decision of a jury or judge at the end of a trial.
REAL ESTATE
Appraisal – An independent valuation of property to determine its fair market value.
Broker Agreement – A contract with a real estate broker outlining commission and services.
Closing – The final step in a real estate transaction when ownership transfers.
Contract of Sale – The written agreement between buyer and seller setting out terms and price.
Co-Op (Cooperative Apartment) – Ownership structure where buyers own shares in a corporation that owns the building.
Condominium – Real estate where individuals own their units and share ownership of common areas.
Deed – The legal document transferring property ownership.
Easement – The right to use another’s land for a specific purpose.
Encumbrance – A claim, lien, or liability attached to property that may affect ownership.
Escrow – Funds or documents held by a neutral third party until transaction conditions are met.
Foreclosure – Legal process by which a lender reclaims property after loan default.
Landlord-Tenant Law – Rules governing rental agreements, evictions, and tenant rights.
Lien – A legal claim on property as security for a debt.
Mortgage – A loan secured by real property, typically for purchasing real estate.
Notice to Quit – A written notice to terminate a tenancy.
Real Property – Land and any structures permanently attached to it.
Title – Legal ownership of real estate, verified by a title search.
Title Insurance – Protects against losses from title defects or disputes.
Zoning – Local laws governing land use and development.
ESTATE PLANNING
Advance Directive – Legal instructions regarding healthcare preferences if you’re incapacitated.
Beneficiary – The person or entity designated to receive assets under a will, trust, or policy.
Codicil – A legal amendment or addition to an existing will.
Estate – The total property, assets, and obligations of a person at death.
Executor – The person appointed to carry out the terms of a will.
Fiduciary – A person entrusted to manage assets or interests for another’s benefit.
Grantor/Settlor – The person who creates and funds a trust.
Guardian – An individual appointed to care for a minor or incapacitated adult.
Heir – A person legally entitled to inherit from someone who dies intestate.
Intestacy – When someone dies without a valid will, state law determines heirs.
Living Trust (Revocable Trust) – A trust created during life to manage and distribute assets, avoiding probate.
Per Stirpes – A method of distributing inheritance where descendants inherit their ancestor’s share.
Power of Attorney (POA) – Grants authority to another person to act on your behalf in financial or legal matters.
Probate – The court process for validating a will and settling an estate.
Testamentary Trust – A trust established under a will, effective upon death.
Trustee – The person or institution managing assets held in a trust.
Will – A written document specifying how property should be distributed upon death.
PERSONAL INJURY
Assumption of Risk – A legal defense claiming the injured person knowingly accepted potential danger.
Comparative Negligence – A system that reduces damages by the percentage of the plaintiff’s fault.
Contingency Fee – Attorney's fee paid only if the case is successful.
Damages (Economic / Non-Economic) – Compensation for financial losses or pain and suffering.
Defendant – The party being sued in a lawsuit.
Deposition – Sworn, out-of-court testimony used as evidence in litigation.
Negligence – Failure to act with reasonable care, resulting in injury.
Premises Liability – Legal responsibility of property owners for injuries caused by unsafe conditions.
Product Liability – Manufacturer or seller responsibility for defective or dangerous products.
Settlement – A negotiated agreement resolving a dispute before trial.
Statute of Limitations – The time limit for filing an injury claim (typically three years in NY).
Tort – A civil wrong that causes harm or loss.
Wrongful Death – A claim for damages when a death results from negligence or misconduct.
BUSINESS LAW
Articles of Incorporation – Documents filed with the state to form a corporation.
Bylaws – Internal rules governing corporate management and operations.
Capital Contribution – Funds or assets that owners contribute to a business.
Dissolution – The formal process of closing and winding up a business.
Fiduciary Duty – Duties of loyalty and care owed by corporate officers and directors.
Franchise Agreement – Contract granting rights to operate a business under a brand’s system.
General Counsel – Legal advisor providing ongoing business law support.
Indemnification – A contractual obligation to reimburse another for losses or liability.
Intellectual Property (IP) – Creations of the mind, including trademarks, copyrights, and patents.
Joint Venture – A collaboration between parties for a specific business project.
LLC (Limited Liability Company) – A flexible business entity combining liability protection with tax benefits.
Operating Agreement – The internal contract among LLC members governing management and ownership.
Partnership Agreement – Defines rights, duties, and profit-sharing between business partners.
Shareholder Agreement – Establishes governance, transfer rights, and dispute resolution for corporations.
Successor Liability – When a new company may be responsible for the debts of its predecessor.
Trade Secret – Confidential business information providing a competitive advantage.
UCC (Uniform Commercial Code) – Law governing commercial transactions, including sales and secured lending.
Winding Up – The final steps in closing a business, paying debts, and distributing assets.