The unconditional agreement to an offer. This creates the contract. Before acceptance, any offer can be withdrawn, but once accepted the contract is binding on both sides. Any conditions have the effect of a counter offer that must be accepted by the other party.

Using an independent third party to settle disputes without going to court. The third party acting as arbitrator must be agreed by both sides. Contracts often include arbitration clauses nominating an arbitrator in advance.

Failure by one party to a contract to uphold their part of the deal. A breach of contract will make the whole contract void and can lead to damages being awarded against the party which is in breach.

A remedy sometimes awarded by the court that stops some action being taken. It can be used to stop another party doing something against the terms of the contract. Injunctions are at the court's discretion and a judge may refuse to give one and award damages instead - see the finance contract terms below.

A person or business deemed liable is subject to a legal obligation. A person/business who commits a wrong or breaks a contract or trust is said to be liable or responsible for it.

An offer to contract must be made with the intention to create, if accepted, a legal relationship. It must be capable of being accepted (not containing any impossible conditions), must also be complete (not requiring more information to define the offer) and not merely advertising.

When two or more people or organisations join together to carry on a business.

A person who acts on behalf of another for a specific purpose, or the form used to make such an appointment. In a company a shareholder can appoint a proxy to attend a meeting and vote on their behalf.

The minimum number of people needed at a meeting for it to proceed and make any decisions.

Words used on documents exchanged by parties during contract negotiations. They denote that the document is not an offer or acceptance and negotiations are ongoing. Often the expression without prejudice is used when subject to contract is meant.

A person who signs as party to a contract. Now usually only applied to insurance contracts where the underwriters are those who agree to bear all or part of the risk in return for the premium payments. Underwriters at Lloyd's of London are also known as names.

A void contract is one that cannot be performed or completed at all. A void contract is void from the beginning (ab initio - see the Latin terms below) and the normal remedy, if possible, is to put things back to where they were before the contract. Contracts are void where one party lacks the capacity to perform the contracted task, it is based on a mistake, or it is illegal.

Promises made in a contract, but which are less than a condition. Failure of a warranty results in liability to pay damages (see the financial terms below) but will not be a breach of contract unlike failure of a condition, which does breach the contract.

A term used by solicitors in negotiations over disputes where an offer is made in an attempt to avoid going to court. If the case does go to court no offer or facts stated to be without prejudice can be disclosed as evidence. Often misused by businesses during negotiations when they actually mean subject to contract.

An alternative to litigation to resolving disputes

Court Order enshrining agreement reached between the parties

Order made that one side pays the other side’s costs, or part of them.

Orders made by the Court to provide guidance to the parties on the conduct of the case.

A Court order freezing the assets of a party to prevent those assets being dissipated or moved abroad.

An alternative method of resolving disputes where the parties reach their own agreement with the guidance of a trained mediator.

Proposals made which can be considered by the Court at trial.

Statement of evidence filed by a party or a witness within proceedings.

Abbreviation for Enduring Power of Attorney.

An arrangement to release cash from the value of your home by way of lump sum, income or both.

The person or persons appointed to administer the estate and to make sure the wishes expressed in a Will are carried out.

Someone appointed to look after the interests of a child under the age of 18.

A form of Equity Release to provide you with an income

Abbreviation for Inheritance Tax

Tax payable on the value of a person’s estate at the date of death and in some cases on gifts made during lifetime and in relation to some ongoing trusts.

If you die without having made a valid will, the Law declares you to be intestate and decides how your possessions should be shared out. Intestacy is the name for this situation.

Children, grandchildren and remoter descendants

Where two or more persons may be liable or may be able to act jointly or individually

Two or more persons own land together each of whose interest passes on death automatically to the other not under their wills.

Where Beneficiary dies before the Testator so gift fails – it lapses

A specific item or property or sum of money left in a Will.

Legal document that you (the Donor) make using a special form. It allows you to choose someone that you trust to make decisions on your behalf about things such as your property and affairs or personal welfare at a time in the future when you no longer wish to make those decisions or you may lack the mental capacity to make those decisions yourself.

Abbreviation for a Lasting Power of Attorney

A pair of Wills in which the terms are almost identical. Many husbands/wives/partners have mirror wills where they have decided on the same beneficiaries

Person under 18 years

Amount of inheritance tax threshold

An organisation that was established in October 2007 and that supports the Public Guardian in registering Enduring Powers of Attorney(EPA), Lasting Powers of Attorney (LPA) and supervising the Court of Protection

Abbreviation for the Office of the Public Guardian

A gift of money under a Will

Personal effects and belongings

A general term meaning either an Executor or an Administrator.

A gift made during a person’s lifetime that is exempt from Inheritance Tax if that person lives for seven years after making the gift.

Deed by which one person appoints another to act on his behalf

Proportionately

Land and anything fixed to it e.g. a building; also called real property

Is the old name for Deputyship and means the appointment by the Court of a person where someone is unable to manage their financial affairs themselves.

Where an asset has been given away but where the donor stills retains some benefit then this is called a Reservation of Benefit and can have significant tax implications.

Person entitled to the Deceased’s estate after payment of all debts funeral and testamentary expenses

What is left of the estate after the payment of all debts, taxes, administration expenses, legacies, and bequests under the Will.

Husband or wife

Two or more persons who own land in shares which pass under the terms of their wills or intestacy.

To die leaving a valid Will.

The person (male/female) who makes the Will.

An arrangement by which property is held by trustees to be applied for the benefit of other people known as beneficiaries (and who might include one or more of the Trustees).

The person who holds property on behalf of another person or persons (of whom they may be one) and is responsible for administering the trust assets.

An arrangement whereby certain provisions under a Will may be varied by consent of the beneficiaries after the death of the Testator. Also known as a Deed of Family Arrangement.

A document satisfying the legal requirements for its execution directing who should administer and who should benefit from a person’s estate.