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

A

Administrator

A person appointed when either no Will can be found or there is no executor to carry out the intentions of the Will

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Administration (Letters of)

Granted by the Probate Registry to administrators (usually the next of kin) where there is no Will, to give them the authority they need to act and to administer/distribute the estate.

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Allowances

There are allowances for Income Tax, Capital Gains Tax and Inheritance Tax and these are reviewed annually by the Government.

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Attorney

A person appointed by you to deal with your affairs in your lifetime.

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Acceptance

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 Before acceptance, any offer can be withdrawn, but once accepted the contract is binding on both sides.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.

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Agent

Somebody appointed to act on behalf of another person (known as the principal). The amount of authority to deal that the agent has is subject to agreement between the principal and the agent. However, unless told otherwise, third parties can assume the agent has full powers to deal.

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Arbitration

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.

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ADR

An alternative to litigation to resolving disputes

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Acknowledgement of Service Form

Document completed by the Respondent to a divorce indicating whether the divorce is defended or not.

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Affidavit in support of Petition

Document filed by the Petitioner to seek Decree Nisi

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Ancillary Relief

The financial process that is linked to divorce

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B

Beneficiary

Someone who receives a gift under a Will, a trust or inherits under the intestacy laws.

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Breach of contract

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.

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C

Chargeable gift

A gift on which Inheritance Tax may be payable.

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Codicil

A change or addition made to an existing Will.

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CGT

Abbreviation for Capital Gains Tax.

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Court of Protection

The Court that has power to make decisions in relation to the property and affairs and healthcare and personal welfare of adults (and children in a few cases) who lack capacity.

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Comfort letters

Documents issued to back up an agreement but which do not have any contractual standing. They are often issued by a parent or associate company stating that the group will back up the position of a small company to improve its trading position. They always state that they are not intended to be legally binding. Also known as letters of comfort.

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Company seal

An embossing press used to indicate the official signature of a company when accompanied by the signatures of two officers of the company. Since 1989 it has been possible for a company to indicate its agreement without use of the seal, by two signatures (directors or company secretary) plus a formal declaration. However, some companies still prefer to use a seal and the articles of a company can override the law and require a seal to be used.

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Conditions

Major terms in a contract. Conditions are the basis of any contract and if one of them fails or is broken, the contract is breached. These are in contrast to warranties, the other type of contract term and a breach of which may lead to an adjustment of the price or a payment of damages.

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Confidentiality agreement

An agreement made to protect confidential information if it has to be disclosed to another party. This often happens during negotiations for a larger contract, when the parties may need to divulge information about their operations to each other. In this situation, the confidentiality agreement forms a binding contract not to pass on that information whether or not the actual contract is ever signed. Also known as a non-disclosure agreement.

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Consideration

In a contract each side must give some consideration to the other. Often referred to as the quid pro quo - see the Latin terms below. Usually this is the price paid by one side and the goods supplied by the other. But it can be anything of value to the other party, and can be negative - eg someone promising not to exercise a right of access over somebody else\'s land in return for a payment would be a valid contract, even if there was no intention of ever using the right anyway.

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Consumer

A person who buys goods or services but not as part of their business. A company can be a consumer for contracts not related to its business - especially for goods or services it buys for its employees. Charities are also treated as consumers.

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Claimant

The person who has suffered an injury as a result of an accident and makes a personal injury claim against the Defendant.

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Conditional Fee Agreement

Sometimes called "no win - no fee" agreement.  This is a funding agreement whereby if you do NOT win your claim, you do NOT pay any legal costs.  If you do win then the otherside pay your legal costs.

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CFA

Short for Conditional Fee Agreement.

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Covenant

An agreement to do or to refrain from doing something usually found in a lease or registered against land at the Land Registry

 

 

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C1

Form used to commence Children Act proceedings

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C2

Form used to make an application in already existing Children Act proceedings.

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CAFCASS

Child and Family Court Advisory Service.  A Government agency which assists the parties and Court in disputes involving the children.

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CAFCASS Report

Report prepared by a CAFCASS Officer (by order of the Court) in some cases where parents are in dispute about children issues.

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Children Act 1989

Main piece of legislation dealing with children issues.

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Chronology (Finances)

Document filed 14 days before the FDA setting out the history of the relationship and proceedings (in brief).

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Civil Partnership

A legal status available to same sex couples.

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Cohabitation Agreement

Agreement entered into before parties cohabit setting out how assets should be divided on separation.

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Collaborative Law

An alternative system of resolving family issues where the parties agree not to go to Court and where negotiation takes place in joint meetings between the parties and their lawyers.

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Common Law Husband/Wife

A legal fallacy.  The concept does not exist and provides no protection to cohabitees.

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Conciliation Appointment

A Court appointment within Children Act proceedings at which a CAFCASS Officer is present.

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Consent Order

Court Order enshrining agreement reached between the parties

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Contact Order

This is an Order which governs the amount of time a child who does not live with a particular parent sees that parent.

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Costs Order

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

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CSA

Child Support Agency. Government agency set up to deal with child maintenance payments.

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Clinical Negligence

Formerly called Medical Negligence.  Medical treatment deemed below an acceptable standard.

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Court Proceedings

These involve issuing a civil claim in the County Court claiming damages for personal injury

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D

Declaration of Trust

A document that declares how and for whom assets are held.

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Deputyship

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

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Discretionary Trust

A trust where the Trustees decide at their discretion who benefits from a trust and to what extent and when.

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Domicile

Country in which a person is deemed to have his permanent home

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Directions

Directions is an action list and timetable either agreed between the parties or ordered by the Court for the parties to follow before a final hearing can take place

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Disclosure

Part of the court proceedings whereby each party to the claim must send to the otherside all the documents they have, or are in control of, that relate to the claim, whether they support their claim or not.

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Defendant

The person who has a personal injury claim brought against them.

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Due diligence

The formal process of investigating the background of a business, either prior to buying it, or as another party in a major contract. It is used to ensure that there are no hidden details that could affect the deal.

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Decree Absolute

Final decree of divorce

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Directions

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

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Directions for Trial (Special Procedure)

Request made in writing for the Court to consider whether Decree Nisi can be made in an undefended divorce.

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Divorce Petition

Document filed at Court to start the divorce process

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E

Enduring Power of Attorney

The old style power of attorney prior to 1st October 2007

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Employment contract

A contract between an employer and an employee. This differs from other contracts in that it is governed by employment legislation - which takes precedence over normal contract law.

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Exclusion clauses

Clauses in a contract that are intended to exclude one party from liability if a stated circumstance happens. They are types of exemption clauses. The courts tend to interpret them strictly and, where possible, in favour of the party that did not write them. In customer dealings, exclusion clauses are governed by regulations that render most of them ineffective but note that these regulations do not cover you in business dealings.

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Exemption clauses

Clauses in a contract that try to restrict the liability of the party that writes them. These are split into exclusion clauses that try to exclude liability completely for specified outcomes, and limitation clauses that try to set a maximum on the amount of damages the party may have to pay if there is a failure of some part of the contract. Exemption clauses are regulated very strictly in consumer dealings but these don\'t apply for those who deal in the course of their business.

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Express terms

The terms actually stated in the contract. These can be the written terms, or verbal ones agreed before or at the time the contract is made (see implied terms).

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Enfranchisement

Buying the freehold of a building

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EPA

Abbreviation for Enduring Power of Attorney.

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Equity release

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

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Executor

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

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F

Franchising

Commercial agreements that allow one business to deal in a product or service controlled by another. For example, most car manufacturers give franchises to sell their cars to local garages, who then operate using the manufacturer\'s brand.

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Forfeiture

Bringing a lease to an end

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FDA

First hearing after issue of financial proceedings, usually used to obtain Directions from the Court.

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FDR

Second hearing in financial proceedings. This is Without Prejudice and the Judge will give a view of the possible outcome.

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Final Hearing

The hearing at which the Court will impose a settlement on the parties.

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Form A

Form filed to start financial proceedings

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Form E

A financial affidavit which is used to provide disclosure in the Court process (and in voluntary disclosure)

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Form G

Form filed 14 days before the FDA setting out whether the parties can use the FDA as an FDR.

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Form H

Estimate of costs form in respect of finance proceedings.

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Form H1

Estimate of costs form produced before the final hearing on financial proceedings.

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Freezing Injunction

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

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G

Going concern

Accounting idea that a business should be valued on the basis that it will be continuing to trade and able to use its assets for their intended purpose. The alternative is a break-up basis, which sets values according to what the assets could be sold for immediately - often much less than their value if they were kept in use.

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General Damages

This is compensation for the pain, suffering and loss of amenity that the claimant has suffered

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Guardian

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

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H

Home Income Plans

A form of Equity Release to provide you with an income

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I

Implied terms

Are terms and clauses that are implied in a contract by law or custom and practice without actually being mentioned by any party. Terms implied by custom and practice can always be overridden by express terms, but some terms implied by law cannot be overridden, particularly those relating to consumers (see exemption clauses).

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Incorporate

Inclusion in, or adoption of, some term or condition as part of the contract. It differs from its company law definition where it refers to the legal act of creating a company.

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Injunction

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.

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IHT

Abbreviation for Inheritance Tax

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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.

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Intestate and Intestacy

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.

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Issue

Children, grandchildren and remoter descendants

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Issue of proceedings

Proceedings are issued when the papers are sent to the Court,and then acknowledged and processed by the Court.

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Interim payment

Monies paid by the defendant in advance of final settlement of a claim.  Where a claimant can prove financial loss (such as a loss of earnings) and liability is admitted, we can apply to the other side for an interim payment to repay financial losses incurred to date.

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J

Joint and several liability

Where parties act together in a contract as partners they have joint and several liability. In addition to all the partners being responsible together, each partner is also liable individually for the entire contract - so a creditor could recover a whole debt from any one of them individually, leaving that person to recover their shares from the rest of the partners.

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Joint venture

An agreement between two or more independent businesses in a business enterprise, in which they will share the costs, management, profits or benefits arising from the venture. The exact shares and responsibilities will be set out in a Joint Venture Agreement.

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Jurisdiction

A jurisdiction clause sets out the country or state whose laws will govern the contract and where any legal action must take place. Don't forget that England and Scotland have different legal codes, and this may need to be specified.

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Joint and Several

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

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Joint Tenants

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

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L

Liability

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.

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Limited liability

Usually refers to limited companies where the owners' liability to pay the debts of the company is limited to the value of their shares. It can also apply to contracts where a valid limitation clause has been included in the terms.

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Liquidation

The formal breaking up of a company or partnership by realising (selling or transferring to pay a debt) the assets of the business. This usually happens when the business is insolvent, but a solvent business can be liquidated if it no longer wishes to continue trading for whatever reason (see receivership in the financial terms below).

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Limitation

Period of time in which Court Proceedings must be issued.

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Lapse

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

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Legacy

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

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Lasting Power of Attorney

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.

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LPA

Abbreviation for a Lasting Power of Attorney

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Liability

Responsibility for the negligent act and/or breach of duty

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Legal Expense Insurance

Insurance cover to fund legal costs and expenses of a claim or action.

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M

Misrepresentation

Where one party to a contract makes a false statement of fact to the other which that other person relies on. Where there has been a misrepresentation then the party who received the false statement can get damages for their loss. The remedy of rescission (putting things back to how they were before the contract began) is sometimes available, but where it is not possible or too difficult the court can award damages instead.

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Maintenance Order (or Periodical Payments)

An order for the payment of money on a regular basis between one party and another for the benefit of the receiving party or the children.

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Matrimonial Causes Act 1973

Main piece of legislation dealing with divorce and financial issues on divorce.

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Mediation

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

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Mirror Will

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

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Minor/Infant

Person under 18 years

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N

Non-executive director

A director who does not work directly for a company but advises the other directors. Non-executive directors have the full powers and authority of any other director and can bind the company to any contract.

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Nuisance

Unlawful interference with enjoyment of land

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Nil Rate Band

Amount of inheritance tax threshold

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O

Offer

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.

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Open Proposals

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

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Office of the Public Guardian

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

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OPG

Abbreviation for the Office of the Public Guardian

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P

Parent company

Where one company owns more than 50 per cent of the voting rights of another company it is the parent of that company which in turn becomes its subsidiary. It can also occur where the parent has less than 50 per cent but can control the board of directors of the subsidiary: that is, it has the power to appoint and remove directors without referring to other shareholders.

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Partnership

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

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Proxy

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.

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Parental Responsibility

A legal concept governing the rights, duties and obligations a parent has in respect of a child.

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Pension Sharing Order

Order dividing a pension either in full or in part.

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Petitioner

Person who starts the divorce

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Pre-Nuptial Agreement

An agreement entered into before marriage dealing with the way finances should be dealt with on separation.

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Prohibited Steps Order

This Order prevents parents taking a step, which they otherwise could take as a child’s parent. For example it can be used to prevent a parent taking a child abroad.

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Property Adjustment Order

Order for transfer of property between one party and another.

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Pecuniary Legacy

A gift of money under a Will

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Personal Chattels Personal Chattels

Personal effects and belongings

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Personal Representative

A general term meaning either an Executor or an Administrator.

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Potentially Exempt Transfer (PET)

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.

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Power of Attorney

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

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Pro rata

Proportionately

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Personal Injury Trust

This is a Trust that can be set up by a claimant BEFORE they receive their personal injury compensation to enable the monnies to be retained in a Trust and the claimant can continue to receive Government benefits.

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Q

Quorum

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

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Questionnaire (Finances)

Document filed 14 days before the FDA seeking further information from the other party based on the Statement of Issues and omissions in disclosure to date.

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R

Rehabilitation

The Rehabilitation Code encourages Insurers to offer and pay for appropriate medical treatment to a claimant at the earliest practicable opportunity such as physiotherapy, counselling or surgery.

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Ratification

Giving authority to an act that has already been done. A company general meeting resolution can ratify an act previously done by the directors; or a principal can choose to ratify the act of an agent that was beyond the specified power of the agent.

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Registered Office

The official address of the company as stated on the register at Companies House. Any documents delivered to this address are considered to be legally served on the company.

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Repudiation

Has two meanings in contract law. The first is where a party refuses to comply with a contract and this amounts to a breach of contract. The second is where a contract was made by a minor (person under the age of 18) who then repudiates it at or shortly after the age of 18. Then the repudiation voids the contract rather than causing a breach of contract.

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Restrictive covenant

Is often included in long-term contracts and contracts of employment to stop the parties working with competitors during the period of the agreement and for some time thereafter. However, unless carefully written the courts will see them as being a restraint of trade and not enforce them.   In property matters it is a provision in a deed limiting the use of a property

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Residence Order

This Order governs with which parent a child will live.

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Resolution

Formerly known as the Solicitors Family Law Association. This is a professional organisation to which some 5,000 family lawyers belong.  It promotes a non confrontational approach to family law.

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Respondent

Person on receiving end of the divorce petition or any other Court process within family proceedings.

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Realty

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

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Receivership

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.

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Reservation of Benefit

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.

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Residuary Beneficiary

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

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Residue/Residuary Estate

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

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S

Special Damages

These are past or future financial losses incurred as a result of the accident ie loss of earnings, medical treatment, paid help for gardening, cleaning etc

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Service contract

Directors and officers of a company are usually given service contracts that are different to a contract of service or employment contract. This is because directors and officers are not always employees and the effect of employment law is different.

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Shareholders

An agreement between all of the shareholders about how the company should be run and the application of the rights of the shareholders. This acts as a contract between the shareholders. The company itself is not bound by it, as it is not a party to the agreement.

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Subject to contract

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.

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S41 Certificate

Certificate supplied by the Court prior to Decree Nisi certifying that the Court is happy that the parties have considered the children on divorce.(This is a formal part of the divorce process and not the same as the Court making an order regarding the residence or otherwise of the children when a dispute occurs.)

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Separation Agreement

Agreement entered into on separation setting out how assets (and other matters) are to be dealt with.

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Specific Issue Order

These Orders deal with particular issues in a child’s life on which parents cannot agree. For example which school a child will attend.

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Statement of Arrangements for Children

Form filed at Court with the Divorce Petition to inform the Court that the parties are thinking about the children on divorce.

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Statement of Issues (Finances)

Document filed 14 days before the FDA setting out the issues between the parties.

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Statement with regard to reconciliation

Form filed with divorce Petition indicating whether the solicitor has given advice on reconciliation.

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Spouse

Husband or wife

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T

Trademark

A registered name or logo that is protected by law. Trademarks must be granted through the Patent Office.

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Trespass

Unlawful entry onto land belonging to another

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Tenants in Common

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

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Testate

To die leaving a valid Will.

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Testator/Testatrix

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

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Trust

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).

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Trustee

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.

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U

Underwriter

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.

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Unfair terms

Some terms are made unfair by legislation and will not be enforced by the courts and may even be interpreted against the person who included them in the contract. The legislation mainly protects consumers, but can also apply where there is a business-to-business contract in which one party is significantly more powerful than the other.

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V

Void

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.

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Variation, Deed of

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.

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W

Warranties

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.

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Without prejudice

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.

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Without Prejudice

Material which is Without Prejudice cannot be referred to in open proceedings.

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Without Prejudice Proposals

Proposals which can be considered by the parties and the Court at Without Prejudice Hearings eg FDR but not at trial.

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Witness Statement

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

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Will

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

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News

3 February 2012
There has recently been a further case on long-term sickness and a worker’s right to accrue
2 February 2012
A rider who was injured after being thrown from her horse has won compensation of £37,000.

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