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120 Terms

Legal Glossary

Plain-language definitions to help you understand your legal documents

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All Terms A–Z

A

ADA Accommodation

A modification or adjustment to a job, work environment, or hiring process that enables a qualified individual with a disability to perform essential job functions under the Americans with Disabilities Act.

Affidavit

A written statement of facts made voluntarily and confirmed by the oath or affirmation of the declarant, typically used as evidence in legal proceedings.

Amendment

A formal modification or addition to an existing contract, agreement, or legal document that changes specific terms while leaving the rest of the agreement intact.

Anticipatory Breach

A breach of contract that occurs before performance is due, when one party clearly indicates by word or conduct that they will not fulfill their obligations.

Apostille

A certificate that authenticates the origin of a public document for international use under the 1961 Hague Apostille Convention, eliminating the need for further consular legalization.

Arbitration

A private dispute resolution process where parties agree to submit their conflict to one or more neutral arbitrators who render a binding decision.

Articles of Incorporation

A formal document filed with a state government to legally establish a corporation, setting forth its basic structure, purpose, and authorized share capital.

Assignment

The transfer of contractual rights or benefits from one party (the assignor) to another (the assignee), generally without releasing the assignor's underlying duties.

At-Will Employment

An employment relationship where either the employer or the employee can terminate the relationship at any time, for any lawful reason, with or without cause or notice.

C

C Corporation

A traditional corporate structure that is taxed as a separate legal entity from its owners, paying corporate income tax on profits before any dividend distributions to shareholders.

Capacity

The legal ability of a person or entity to enter into a binding contract, requiring age of majority, sound mind, and freedom from legal disabilities.

Cease and Desist

A formal written demand ordering a person or entity to stop a specified activity and refrain from repeating it, often serving as a precursor to legal action.

Choice of Law

A contractual provision designating which jurisdiction's substantive law will govern the interpretation, validity, and enforcement of the agreement.

Class Action

A type of lawsuit where one or more plaintiffs file and pursue litigation on behalf of a larger group of people who have suffered similar harm from the same defendant.

Codicil

A legal document that amends, supplements, or partially revokes an existing will without replacing it entirely, executed with the same formalities as the original will.

Consideration

Something of value exchanged between parties to a contract, which is required to make the agreement legally binding and enforceable.

Contempt of Court

Conduct that disobeys, disrespects, or obstructs a court's authority, punishable by fines, imprisonment, or other sanctions designed to enforce compliance with judicial orders.

Copyright

A form of intellectual property protection that grants the creator of an original work exclusive rights to reproduce, distribute, display, and create derivative works.

D

Data Controller

Under the GDPR and similar privacy laws, the person or entity that determines the purposes and means of processing personal data and bears primary compliance responsibility.

Data Processor

A natural or legal person or entity that processes personal data on behalf of and according to the instructions of a data controller, generally without independent purpose-setting authority.

Deed of Trust

A real estate security instrument used in many states instead of a mortgage, in which the borrower transfers legal title to a neutral trustee until the underlying loan is repaid.

Default Judgment

A binding court ruling entered in favor of the plaintiff when the defendant fails to respond to a lawsuit or appear in court within the required time.

Defendant

The party against whom a lawsuit is filed in a civil case or a criminal charge is brought, who must respond to the allegations and defend against the claims.

Deposition

A sworn, out-of-court oral testimony given by a witness or party before trial, recorded for later use as evidence in legal proceedings.

Derivative Action

A lawsuit brought by a shareholder on behalf of a corporation against directors, officers, or third parties for harm done to the corporation itself.

Discovery

The pretrial phase of litigation where parties exchange relevant information, documents, and evidence to prepare their cases for trial or settlement.

Due Diligence

The investigation and verification of facts conducted before entering a significant business transaction, designed to identify risks, confirm representations, and inform decision-making.

Due Process

The constitutional guarantee that the government must respect fair procedures and substantive protections before depriving any person of life, liberty, or property.

E

Easement

A legal right to use another person's land for a specific purpose without possessing it, such as a right of way for access or utility lines.

EIN (Employer Identification Number)

A unique nine-digit federal tax identification number assigned by the IRS to businesses, trusts, and estates for tax filing and reporting purposes.

Eminent Domain

The constitutional power of federal, state, and local governments to take private property for public use, provided the owner receives just compensation as required by the Fifth Amendment.

Employee Handbook

A comprehensive document provided by an employer that outlines workplace policies, procedures, employee rights, benefits, and expectations for conduct.

Encumbrance

A claim, lien, charge, or liability attached to real property that may diminish its value or affect the owner's ability to transfer clear title.

Equal Employment Opportunity

The legal principle that employment decisions must be based on merit and qualifications, free from discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information.

Escrow

A financial arrangement where a neutral third party holds funds, documents, or assets on behalf of two transacting parties until specified conditions are met.

Eviction

A legal process by which a landlord removes a tenant from a rental property for violating lease terms, failing to pay rent, or other lawful grounds.

Executor

The person or institution named in a will to administer the testator's estate, including collecting assets, paying debts and taxes, and distributing property to beneficiaries.

F

Fee Simple

The most complete and unrestricted form of real property ownership recognized under U.S. law, granting the holder absolute rights subject only to government powers and recorded encumbrances.

Fiduciary Duty

The highest legal obligation of trust and loyalty that one party owes to another, requiring them to act in the other party's best interest.

Fixture

Personal property that has been so attached to real property or used in connection with it that it has become part of the real estate and transfers with the land.

FLSA Exempt

A worker classification under the Fair Labor Standards Act for employees who are not entitled to overtime pay because they meet specific salary and duties tests.

FLSA Non-Exempt

A worker classification under the Fair Labor Standards Act for employees who must be paid at least minimum wage and overtime for all hours worked beyond 40 in a workweek.

FMLA (Family and Medical Leave Act)

A federal law that entitles eligible employees of covered employers to take up to 12 weeks of unpaid, job-protected leave per year for specified family and medical reasons.

Force Majeure

A contractual clause that frees both parties from obligation when an extraordinary event beyond their control prevents one or both from fulfilling their duties.

Force Majeure Event

A specific extraordinary occurrence — natural disaster, war, pandemic, government action — that triggers a force majeure clause and excuses contractual performance.

Forum Selection Clause

A contract provision that designates the specific court or location where any disputes arising from the agreement must be brought, providing predictability and limiting forum shopping.

L

Last Will and Testament

A legal document that expresses a person's wishes regarding the distribution of their assets and the care of minor children after their death.

Lawful Basis

Under the GDPR, one of six specific legal grounds that must be identified and documented for any processing of personal data to be permissible.

Lease Agreement

A legally binding contract between a landlord and tenant that grants the tenant the right to occupy and use a property for a specified period in exchange for rent payments.

Letter of Intent

A document outlining the preliminary terms of a proposed agreement between parties, expressing a serious intention to negotiate toward a final binding contract.

Liability

A legal responsibility or obligation to pay damages, fulfill a duty, or answer for an action or failure to act under the law.

Licensing Agreement

A contract granting one party permission to use another party's intellectual property, brand, technology, or other proprietary rights under specified terms and conditions.

Lien

A legal right or interest that a creditor has in another's property, granted as security for a debt or other obligation until satisfaction is made.

Limited Liability

A legal principle that restricts an owner's personal financial responsibility for business debts and obligations to the amount they have invested in the entity.

Liquidated Damages

A predetermined amount of money agreed upon by contracting parties as compensation for a specific breach, established when actual damages would be difficult to calculate.

LLC (Limited Liability Company)

A flexible business structure that combines the limited liability protection of a corporation with the tax flexibility and operational simplicity of a partnership.

S

S Corporation

A federal tax election that allows a qualifying corporation or LLC to pass income, losses, and credits through to shareholders, avoiding entity-level corporate tax.

Security Deposit

A sum of money paid by a tenant to a landlord at the start of a lease, held as protection against unpaid rent, property damage, or other lease violations.

Settlement Agreement

A legally binding contract that resolves a dispute between parties without going to trial, typically involving payment or other concessions in exchange for a release of claims.

Severability

A contractual provision stating that if any part of the agreement is found invalid or unenforceable, the remaining provisions will continue in full force and effect.

Severance Pay

Compensation and benefits provided to an employee upon termination of employment, typically offered in exchange for a release of legal claims against the employer.

Sole Proprietorship

An unincorporated business owned and operated by a single individual, where the owner and the business are legally indistinguishable for tax and liability purposes.

Specific Performance

An equitable remedy in which a court orders a breaching party to fulfill their contractual obligations rather than pay monetary damages.

Statute of Limitations

A law that sets the maximum time period within which legal proceedings must be initiated after an alleged offense or breach occurs.

Sublease

An arrangement where the original tenant of a rental property rents all or part of the premises to a third party while remaining responsible under the original lease.

Summary Judgment

A pretrial ruling in which a court decides a case or specific claims based on the legal arguments and undisputed facts, without holding a full trial.