Commonlaw
Commonlawreferstolawandthecorrespondinglegalsystemdevelopedthroughdecisionsofcourtsand
similartribunals(calledcaselaw),ratherthanthroughlegislativestatutesorexecutiveaction.
Commonlawislawcreatedandrefinedbyjudges:adecisioninacurrentlypendinglegalcasedepends
ondereisno
authoritativestatementofthelaw,judgeshavetheauthorityanddutytomakelawbycreatingprecedent.
Thebodyofprecedentiscalled"commonlaw"recases,whenparties
disagreeonwhatthelawis,anidealizedcommonlawcourtlookstopastprecedentialdecisionsofrelevant
ilardisputehasbeenresolvedinthepast,thecourtisboundtofollowthereasoning
usedinthepriordecision(thisprincipleisknownasstaredecisis).If,however,thecourtfinds
thatthecurrentdisputeisfundamentallydistinctfromallpreviouscases,itwilldecideasa"matter
offirstimpression."Thereafter,thenewdecisionbecomesprecedent,andwillbindfuturecourtsunder
theprincipleofstaredecisis.
Inpractice,commonlawsystemsareconsiderablymorecomplicatedthantheidealizedsystemdescribed
isionsofacourtarebindingonlyinaparticularjurisdiction,andevenwithinagiven
jurisdiction,mple,inmostjurisdictions,decisions
byappellatecourtsarebindingonlowercourtsinthesamejurisdictionandonfuturedecisionsof
thesameappellatecourt,butdecisionsofnon-appellatecourtsareonlynon-bindingpersuasiveauthority.
Interactionsbetweencommonlaw,constitutionallaw,statutorylawandregulatorylawalsogiverise
rstaredecisis,theprinciplethatsimilarcasesshouldbedecided
accordingtoconsistentprincipledrulessothattheywillreachsimilarresults,liesattheheart
ofallcommonlawsystems.
Commonlawlegalsystemsareinwidespreaduse,particularlyinthosenationswhichtracetheirlegal
heritagetoBritain,includingtheUnitedKingdom,mostoftheUnitedStates,andotherformercolonies
oftheBritishEmpiresuchasIndia,[2]Canada,ewZealand,AustraliaandHongKong.[3]
Injunction
Aninjunctionisanequitableremedyintheformofacourtorder,wherebyapartyisrequiredtodo,
ortorefrainfromdoing,tythatfailstoadheretotheinjunctionfacescivil
orcriminalpenaltiesandmayhavetopaydamagesoracceptsanctionsforfailingtofollowthecourt's
cases,breachesofinjunctionsareconsideredseriouscriminaloffencesthatmeritarrest
andpossibleprisonsentences.
Misrepresentation
safalsestatementoffactmadebyonepartyto
anotherparty,mple,undercertain
circumstances,falsestatementsorpromisesmadebyasellerofgoodsregardingthequalityornature
ngofmisrepresentation
allowsforaremedyofrescissionandsometimesdamagesdependingonthetypeofmisrepresentation.
Estoppel
Estoppelisalegaldoctrineatcommonlaw,whereapartyisbarredfromclaimingordenyinganargument
ral,
estoppelprotectsanaggrievedparty,ifthecounter-partyinducedanexpectationfromtheaggrieved
party,andtheaggrievedpartyreasonablyreliedontheexpectationandwouldsufferdetrimentifthe
expectationisnotmet.
Also,unconscionabilitybyabreachingpartyisalsosufficienttoestopthebreachingparty.
1
Estoppelisadefensethatpreventsarepresentorfromenforcinglegalrights,orfromrelyingona
setoffactsthatwouldgiverisetoenforceablerights(aidoractionsperformed),generally
eitseffectistodefeat
generallyenforceablelegalrights,,however,that
proprietaryestoppel(applicableinEnglishlandlaw)canbebothaswordandashieldandthescope
ofitsremedyiswide.
Foranexampleofestoppel,ditormightunofficially
suchforgivenessisnotformallydocumented,
thecreditormaybeestoppedfromchangingitsmindandseekingtocollectthedebt,becausethatchange
ameway,alandlordmightinformatenantthatrenthasbeenreduced,forexample,
enantreliesonthisnotice,thelandlord
couldbeestoppedfromcollectingthefullrent.
Estoppeliscloselyrelatedtothedoctrinesofwaiver,variation,andelectionandisappliedinmany
areasoflaw,includinginsurance,banking,employment,internationaltrade,ishlaw,the
conceptoflegitimateexpectationintherealmofadministrativelawandjudicialreviewisestoppel's
counterpartinpubliclaw,althoughsubtlebutimportantdifferencesexist.
ThistermappearstocomefromtheFrenchestoupail(oravariation),whichmeant"stopperplug",
misrelatedtotheverb"estop"
whichcomesfromtheOldFrenchtermestopper,meaning"stopup,impede".otethesimilaritybetween
theEnglishterms"estop"and"stop".
Caselaw
Caselaw(alsoknownasdecisionallaworjudicialprecedent)isthegeneraltermfortheprinciples
andrulesoflawsetforthinjudicialopinionsfromcourtsoflaw.[1]Caselawincorporatescourts'
decisionsfromindividualcasesandencompassescourts'interpretationsofstatutes,constitutional
provisions,administrativeregulationsand,insomecases,
lawisoftenpublishedinprintlawreportsorreporters(andincreasinglyoncourtwebsites)toestablish
precedent-rulestoapplyinfuturecourtdecisionsdealingwithsimilarsituations.
Forcountrieswithacommonlawlegalsystem,suchasintheUnitedKingdom,UnitedStates,andmost
oftheCommonwealthofations,ral,courtsincommonlaw
countriestreatthedecisionsofhigherappellatecourtsasnormative-layingdownrulesthatshould,
orinsomecasesmust,beusedtodecidesimilarlegaldisputes(called"bindingprecedent").Incountries
withlegalsystemsthatfollowthecivillawtraditionderivedfromRomanlaw,however,thecourtsare
notstrictlyboundbyrulesandprinciplesfromcaselaw.
Statute
mesact1900madebynswparliament
Astatuteisaformalwrittenenactmentofalegislativeauthoritythatgovernsacountry,state,city,
orcounty.[1]Typically,statutescommandorprohibitsomething,disoften
usedtodistinguishlawmadebylegislativebodiesfromthejudicialdecisionsofthecommonlawand
esaresometimesreferredtoaslegislationor
"blackletterlaw".Asasourceoflaw,statutesareconsideredprimaryauthority(asopposedtosecondary
authority).
Beforeastatutebecomeslawinsomecountries,itmustbeagreeduponbythehighestexecutiveinthe
government,countries,statutesareorganizedintopical
arrangements(or"codified")withinpublicationscalledcodes,
UnitedStates,statutorylawisdistinguishedfromandsubordinatetoconstitutionallaw.
2
[1]
Agency(law)
Agencyisanareaofcommerciallawdealingwithacontractualorquasi-contractualtripartite,or
non-contractualsetofrelationshipswhenanagentisauthorizedtoactonbehalfofanother(called
thePrincipal)tocreatealegalrelationshipwithaThirdParty.[1]Succinctly,itmaybereferredto
astherelationshipbetweenaprincipalandanagentwherebytheprincipal,expresslyorimpliedly,
ntis,thus,requiredtonegotiate
onbehalfoftanch
oflawseparatesandregulatestherelationshipsbetween:
AgentsandPrincipals;
AgentsandtheThirdPartieswithwhomtheydealontheirPrincipals'behalf;and
PrincipalsandtheThirdPartieswhentheAgentspurporttodealontheirbehalf.
ThecommonlawprincipleinoperationisusuallyrepresentedintheLatinphrase,quifacitperalium,
facitperse,whoactsthroughanother,actsinhisorherowninterestsanditisaparallel
concepttovicariousliabilityandstrictliabilityinwhichonepersonisheldliableinCriminallaw
orTortfortheactsoromissionsofanother.
Goodfaith
Goodfaith,orinLatinbonafides(bonafidemeans"ingoodfaith"),isthementalandmoralstate
ofhonesty,convictionastothetruthorfalsehoodofapropositionorbodyofopinion,orastothe
nceptisimportantinlaw,especiallyequitable
matters.
IncontemporaryEnglish,"bonafides"issometimesusedasasynonymforcredentials,background,or
documentationofaperson'sidentity."Showmeyourbonafides"canmean:WhyshouldItrustyou(your
goodfaithinthismatter)?sense,thephraseissometimesusedinjob
advertisements,andshouldnotbeconfusedwiththebonafideoccupationalqualificationsorthe
employer'sgoodfaitheffort,asdescribedbelow.[2]
Commissioner
Commissionerisinprincipalthetitlegiventotheholderofacommission,inthesenseofamandate,
whetherindividuallyorshared,notablyasmemberofacollegialcommission.
Inpracticethetitleofcommissionerhasevolvedtoincludeavarietyofseniorofficials,oftensitting
icular,commissionerfrequentlyreferstoseniorpoliceorgovernment
ommissionerisequivalenttoanambassador,betweenCommonwealthstatessharingthe
sameMonarchasheadofstate.
Thetitleisalsosometimesgiventoseniorofficialsintheprivatesector,forinstancemanyorth
Americansportsleagues.
Partnership
Apartnershipisatypeofbusinessentityinwhichpartners(owners)sharewitheachothertheprofits
rshipsareoftenfavoredover
corporationsfortaxationpurposes,asthepartnershipstructuredoesnotgenerallyincurataxonprofits
beforeitisdistributedtothepartners(snodividendtaxlevied).However,depending
onthepartnershipstructureandthejurisdictioninwhichitoperates,ownersofapartnershipmay
beexposedtogreaterpersonalliabilitythantheywouldasshareholdersofacorporation.
Jointandseveralliability
Underjointandseveralliability,aclaimantmaypursueanobligationagainstanyonepartyasifthey
werejointlyliableanditbecomestheresponsibilityofthedefendantstosortouttheirrespective
ansthatiftheclaimantpursuesonedefendantandreceives
3
[1]
payment,thatdefendantmustthenpursuetheotherobligorsforacontributiontotheirshareofthe
liability.
Jointandseveralliabilityismostrelevantintortclaims,wherebyaplaintiffmayrecoverallthe
damagesfromaeis
oftenappliedinnegligencecases,thoughitissometimesinvokedinotherareasoflaw.
IntheUnitedStates,46ofthe50stateshavearuleofjointandseveralliability,althoughinresponse
to"tortreform"efforts,somehavelimitedtheapplicabilityoftherule.
Tort
Tortlawisthenamegiventoabodyoflawthataddresses,andprovidesremediesfor,civilwrongs
nwhosufferslegaldamagesmaybeabletousetort
lawtoreceivecompensationfromsomeonewhoislegallyresponsible,or"liable,"forthoseinjuries.
Generallyspeaking,tortlawdefineswhatconstitutesalegalinjuryandestablishesthecircumstances
underwhichonepersonmaybeheldliableforanother'overintentionalactsand
accidents.
Forinstance,maysueAlicefor
lossesoccasionedbytheaccident(e.g.,costsofmedicaltreatment,lostincomeduringtimeoffwork,
painandsuffering,etc.).WhetherornotBrendawinshersuitdependsonifshecanproveAliceengaged
,BrendawouldattempttoproveAlicehadadutyandfailedtoexercisethe
standardofcarewhichareasonablepersonwouldrenderinthrowingtheball.
Oneofthemaintopicsofthesubstanceoftortlawisdeterminingthe"standardofcare"-alegal
ptherway,thebig
issueiswhetherapersonsuffersthelossfromhisowninjury,orwhetheritgetstransferredtosomeone
else.
Goingbacktotheexampleabove,ifAlicethrewtheballatBrendaonpurpose,Brendacouldsuefor
sanaccident,is,Brenda
mustshowthatherinjurywasreasonablyforeseeable,thatAliceowedBrendaadutyofcarenottohit
herwiththeball,andthatAlicefailedtomeetthestandardofcarerequired.
Inmuchofthewesternworld,njuredpartycannot
provethatthepersonbelievedtohavecausedtheinjuryactedwithnegligence,attheveryleast,tort
walsorecognizesintentionaltortsandstrictliability,which
applytodefendantswhoengageincertainactions.
Intortlaw,doesnotjustmeanaphysicalinjury,suchaswhereBrenda
esintortlawreflectanyinvasionofanynumberofindividual"interests."
Thisincludesinterestsrecognizedinotherareasoflaw,sfornuisance
asionandtrespass
stsinprospectiveeconomicadvantages
rofsituationscaused
bypartiesinacontractualrelationshipmayneverthelessbetortratherthancontractclaims,such
asbreachoffiduciaryduty.
Tortlawmayalsobeusedtocompensateforinjuriestoanumberofotherindividualintereststhat
arenotrecognizedinpropertyorcontractlaw,cludesaninterestinfreedom
fromemotionaldistress,privacyinterests,reprotectedbyanumberoftorts
suchasinfliction,privacytorts,tionandprivacytortsmay,forexample,allow
acelebrityrotected
interestsincludefreedomofmovement,protectedbytheintentionaltortoffalseimprisonment.
4
[1]
Theequivalentoftortincivillawjurisdictionsisdelict.[2]Thelawoftortscanbecategorisedas
partofthelawofobligations,butunlikevoluntarilyassumedobligations(suchasthoseofcontract,
ortrust),thedutiesimposedbythelawoftortsapplytoallthosesubjecttotherelevantjurisdiction.
Tobehavein'tortious'manneristoharmanother'sbody,property,orlegalrights,orpossibly,to
commitsatortiousactiscalleda"tortfeasor".[3]Tortsis
oneoftheAmericanBarAssociationmandatoryfirstyearlawschoolcourses.[4]
Piercingthecorporateveil
Thecorporatelawconceptofpiercing(lifting)thecorporateveildescribesalegaldecisionwhere
ashareholderordirectorofacorporationisheldliableforthedebtsorliabilitiesofthecorporation
despitethegeneralprinciplethatshareholdersareimmunefromsuitsincontractortortthatotherwise
ctrineisalsoknownas"disregardingthecorporateentity".
Thephrasereliesonametaphorofa"veil"thatrepresentstheveneerofformalitiesanddignities
thatprotectacorporation,whichcanbedisregardedatwillwhenthesituationwarrantslookingbeyond
the"legalfiction"ofacorporatepersontotherealityofotherpersonsorentitieswhowouldotherwise
beprotectedbythecorporatefiction.
Piercingthecorporateveilisnottheonlymeansbywhichadirectororofficerofacorporationcan
itycanbeestablishedthroughconventional
theoriesofcontract,agency,mple,insituationswhereadirectororofficeracting
onbehalfofacorporationpersonallycommitsatort,heandthecorporationarejointlyliableand
itisunnecessarytodiscusstheissueofpiercingthecorporateveil.
Thedoctrineisoftenusedincaseswhereliabilityisfound,butthecorporationisinsolvent.
Parentcompany
Aparentcompanyisacompanythatownsenoughvotingstockinanotherfirmtocontrolmanagementand
operationsbyinfluencingorelectingitsboardofdirectors;thesecondcompanybeingdeemedasa
initionofaparentcompanydiffersfromjurisdictionto
jurisdiction,withthedefinitionnormallybeingdefinedbywayoflawsdealingwithcompaniesinthat
jurisdiction.
Subsidiary
Asubsidiary,inbusinessmatters,isanentitythatiscontrolledbyabiggerandmorepowerfulentity.
Thecontrolledentityiscalledacompany,corporation,orlimitedliabilitycompany,andthecontrolling
entityiscalleditsparent(ortheparentcompany).Thereasonforthisdistinctionisthatalone
companycannotbeasubsidiaryofanyorganization;onlyanentityrepresentingalegalfictionasa
ndividualshavethecapacitytoactontheirowninitiative,
abusinessentitycanonlyactthroughitsdirectors,officersandemployees.
Themostcommonwaythatcontrolofasubsidiaryisachievedisthroughtheownershipofsharesinthe
haresgivetheparentthenecessaryvotestodeterminethecomposition
vesrisetothecommonpresumptionthat
50%re,however,otherwaysthatcontrolcan
comeaboutandtheexactrulesbothastowhatcontrolisneededandhowitisachievedcanbecomplex
(seebelow).Asubsidiarymayitselfhavesubsidiaries,andthese,inturn,mayhavesubsidiariesof
tandallitssubsidiariestogetherarecalledagroup,althoughthistermcanalso
applytocooperatingcompaniesandtheirsubsidiarieswithvaryingdegreesofsharedownership.
Subsidiariesareseparate,
thisreason,theydifferfromdivisions,whicharebusinessesfullyintegratedwithinthemaincompany,
andnotlegallyorotherwisedistinctfromit.
5
AnoperatingsubsidiaryisabusinesstermfrequentlyusedwithintheUnitedStatesrailroadindustry.
Inthecaseofarailroad,itreferstoacompanythatisasubsidiarybutoperateswithitsownidentity,
locomotivesandrollingstock.
Incontrast,anon-operatingsubsidiarywouldexistonpaperonly(,bonds,articlesof
incorporation)andwouldusetheidentityandrollingstockoftheparentcompany.
Branch
Abranchisawoodystructuralmemberconnectedtobutnotpartofthecentraltrunkofatree(orsometimes
ashrub).Largebranchesareknownasboughsandsmallbranchesareknownastwigs.
Whilebranchescanbenearlyhorizontal,vertical,ordiagonal,themajorityoftreeshaveupwardly
diagonalbranches.
ArticlesofIncorporation
TheArticlesofIncorporation(sometimesalsoreferredtoastheCertificateofIncorporationorthe
CorporateCharter)aretheprimaryrulesgoverningthemanagementofacorporationintheUnitedStates,
ivalentintheUnitedKingdomandvarious
othercountriesisArticlesofAssociation.
Bylaw
Abylaw(sometimesalsospelledby-laworbyelaw)mostcommonlyreferstoacityormunicipallawor
ordinance,passedundertheauthorityofacharterorprovincial/statelawspecifyingwhatthingsmay
beregulatedbythemunicipality.
Liability
Inthemostgeneralsense,aliabilityisanythingthatisahindrance,orputsindividualsata
lsobeusedasaslangtermtodescribesomeonethatputsateamorgroupofwhich
theyareamemberatadisadvantage,andwouldthusbebetteroffwithout.
Capital(economics)
Ineconomics,capitalorcapitalgoodsorrealcapitalreferstofactorsofproductionusedtocreate
goodsorservicesthatarenotthemselvessignificantlyconsumed(thoughtheymaydepreciate)inthe
nceand
accounting,capitalgenerallyreferstofinancialwealth,especiallythatusedtostartormaintain
abusiness.
Authorisedcapital
Theauthorisedcapitalofacompany(sometimesreferredtoastheauthorisedsharecapitalorthenominal
capital,particularlyintheUnitedStates)isthemaximumamountofsharecapitalthatthecompany
theauthorisedcapital
can(andfrequentlydoes)remainunissued.
Thepartoftheauthorisedcapitalwhichhasbeenissuedtoshareholdersisreferredtoastheissued
sharecapitalofthecompany.
Sharecapital
Sharecapitalorissuedcapital(UKEnglish)orcapitalstock(USEnglish)[1]referstotheportion
ofacompany'sequitythathasbeenobtained(orwillbeobtained)bytradingstocktoashareholder
mple,acompanycansetasidesharecapital
toexchangeforcomputerserversinsteadofdirectlypurchasingtheserversfromexistingequity.
Thepaid-upcapitaldoesnotspeakabouttheshares.
Preferredstock
Preferredstock,alsocalledpreferredsharesorpreferenceshares,istypicallya'higherranking'
stockthanvotingshares,anditstermsarenegotiatedbetweenthecorporationandtheinvestor.
6
Preferredstockusuallycarriesnovotingrights,[1][2]butmaycarrysuperiorpriorityovercommonstock
redstockmaycarryadividendthatispaid
redstockmayhaveaconvertibility
redstockholderswillbepaidoutinassetsbeforecommonstockholders
fthepreferredstockarestatedina"Certificateof
Designation".
Consolidation(business)
ness,itoftenrefers
totancialaccounting
termofconsolidationreferstotheaggregatedfinancialstatementsofagroupcompanyasconsolidated
ationtermofconsolidationreferstothetreatmentofagroupofcompaniesandother
heHalsbury'sLawsofEngland,'amalgamation'isdefined
as"ablendingtogetheroftwoormoreundertakingsintooneundertaking,theshareholdersofeach
blendingcompany,becoming,substantially,aybe
amalgamations,eitherbytransferoftwoormoreundertakingstoanewcompany,ortothetransferof
oneormorecompaniestoanexistingcompany".Thus,thetwoconceptsare,substantially,thesame.
However,thetermamalgamationismorecommonwhentheorganizationsbeingmergedareprivateschools
orregiments.
on-executivedirector
Anon-executivedirector(ED,alsoXD)oroutsidedirectorisamemberoftheboardofdirectorsof
eisnotanemployeeofthe
edifferentiatedfrominsidedirectors,whoare
membersoftheboardalsoservingasexecutivemanagersofthecompany(mostoftenascorporateofficers).
Businessjudgmentrule
ThebusinessjudgmentruleisanAmericancaselaw-derivedconceptinCorporationslawwherebythe
"directorsofacorporation...areclothedwith[the]presumption,whichthelawaccordstothem,
ofbeing[motivated]intheirconductbyabonafideregardfortheinterestsofthecorporationwhose
affairsthestockholdershavecommittedtotheircharge"[1]andwherebyacourtwillrefusetoreview
theactionsofacorporation'sboardofdirectorsinmanagingthecorporationunlessthereissome
allegationofconductthatthedirectorsviolatedtheirdutyofcaretomanagethecorporationtothe
denisonthepartychallengingthedecisiontoestablishfactsrebutting
thepresumption.[2]
Derivativesuit
Ashareholderderivativesuitisalawsuitbroughtbyashareholderonbehalfofacorporationagainst
,thethirdpartyisaninsiderofthecorporation,suchasanexecutiveofficer
olderderivativesuitsareuniquebecauseundertraditionalcorporatelaw,management
olderderivativesuits
ederivativesuits
varythetraditionalrolesofmanagementandshareholders,manyjurisdictionshaveimplementedvarious
proceduralrequirementstoderivativesuits.
Mergersandacquisitions
Thephrasemergersandacquisitions(abbreviatedM&A)referstotheaspectofcorporatestrategy,
corporatefinanceandmanagementdealingwiththebuying,sellingandcombiningofdifferentcompanies
thatcanaid,finance,orhelpagrowingcompanyinagivenindustrygrowrapidlywithouthavingto
createanotherbusinessentity.
7
Contract
Acontractisanexchangeofpromisesbetweentwoormorepartiestodo,orrefrainfromdoing,anact
tosay,acontract
isanexchangeofpromisesforthebreachofwhichthelawwillprovidearemedy.
Agreementissaidtobereachedwhenanoffercapableofimmediateacceptanceismetwitha"mirror
image"acceptance(ie,anunqualifiedacceptance).Thepartiesmusthavethenecessarycapacityto
contractandthecontractmustnotbeeithertrifling,indeterminate,ct
lawisbasedontheprincipleexpressedintheLatinphrasepactasuntservanda(usuallytranslated
"pactsmustbekept",butmoreliterally"agreementsaretobekept").[2]Breachofcontractisrecognized
meswrittencontractsarerequired,suchaswhenbuying
ahouse.[3]However,mostcontractscanbeandaremadeorally,suchaspurchasingabookorasandwich.
Contractlawcanbeclassified,asishabitualincivillawsystems,aspartofagenerallawofobligations
(alongwithtort,unjustenrichmentorrestitution).
Consideration
romisedaction,oromissionofaction,
aketheformofmoney,
physicalobjects,services,rtiestoacontractmustpassconsideration
totheotherpartyfortheretobeavalidcontract.
However,evenifacourtdecidesthereisnocontract,theremightbeapossiblerecoveryunderQuantum
meruit(sometimesreferredtoasaQuasi-contract)orpromissoryestoppel.
Proprietaryestoppel
Thetraditionalversionofproprietaryestoppelarisesinrelationtorightstousethelandofthe
owner,an:
[1]
onepartyrepresentsthatheorsheistransferringaninterestinlandtoanother,butwhat
isdonehasnolegaleffect,or
merelypromisesatsometimeinthefuturetotransferlandoraninterestinlandtoanother,
and
knowsthattheotherpartywillspendmoneyorotherwiseacttohisorherdetrimentinreliance
onthesupposedorpromisedtransfer,
,inDillwynvLlwellyn(1862)4DeG.F.&rpromiseda
housetohissher
sfatherdied,thesonclaimedtobetheequitable
ownottvBarber
(1880)15ChD96,FryJconsideredthatfiveelementshadtobeestablishedbeforeproprietaryestoppel
couldoperate:
theplaintiffmusthavemadeamistakeastohislegalrights;
theplaintiffmusthavedonesomeactofreliance;
thedefendant,thepossessorofalegalright,mustknowoftheexistenceofhisownrightwhich
isinconsistentwiththerightclaimedbytheplaintiff;
thedefendantmustknowoftheplaintiff'smistakenbelief;and
thedefendantmusthaveencouragedtheplaintiffinhisactofreliance.
Althoughproprietaryestoppelwasonlytraditionallyavailableindisputesaffectingtitletoreal
property,etaryestoppelisclosely
relatedtothedoctrineofconstructivetrust(seenowCobbevYeoman'sRow[2008]UKHL55).
8
Theterm"proprietaryestoppel"isnotusedinAmericanlaw,butispartandparcelofthegeneraldoctrine
ishlaw,proprietaryestoppelisdistinctfrompromissoryestoppel.
Mistake(contractlaw)
Incontractlawamistakeisanerroneousbelief,atcontracting,
lawhasidentifiedtwodifferenttypesofmistake
incontract:"unilateralmistake"and"mutualmistake,"sometimescalled"commonmistake."
Misrepresentation
safalsestatementoffactmadebyonepartyto
anotherparty,mple,undercertain
circumstances,falsestatementsorpromisesmadebyasellerofgoodsregardingthequalityornature
ngofmisrepresentation
allowsforaremedyofrescissionandsometimesdamagesdependingonthetypeofmisrepresentation.
(1986)18HLR219itispossibletomakeamisrepresentationeitherby
wordsorbyconduct,althoughnoteverythingsaidordoneiscapableofconstitutingamisrepresentation.
Generally,statementsofopinionorintentionarenotstatementsoffactinthecontextof
misrepresentation.[1]Ifonepartyclaimsspecialistknowledgeonthetopicdiscussed,thenitismore
likelyforthecourtstoholdastatementofopinionbythatpartyasastatementoffact.[2]
Liquidateddamages
Liquidateddamages(alsoreferredtoasliquidatedandascertaineddamages)aredamageswhoseamount
thepartiesdesignateduringtheformationofacontractfortheinjuredpartytocollectascompensation
uponaspecificbreach(e.g.,lateperformance).
Whendamagesarenotpredetermined/assessedinadvance,thentheamountrecoverableissaidtobe'at
large'(tobeagreedordeterminedbyacourtortribunalintheeventofbreach).
Parolevidencerule
Theparolevidenceruleisthelegalapplicationofaruleofsubstantivelawincontractcasesthat
preventsapartytoawrittencontractfromcontradicting(orsometimesaddingto)thetermsofthe
contractbyseekingtheadmissionofevidence"extrinsic"(outside)mple,Carlagreesin
writingtosellBettyacarfor$1,rguesthatCarltoldherthatshewouldonlyneedtopayCarl$
parolevidencerulewouldgenerallypreventBettyfromtestifyingtothisconversationbecausethetestimony($800)
woulddirectlycontradictthewrittencontract'sterms($1,000).
Frustrationofpurpose
Inthelawofcontracts,ation
ofpurposeoccurswhenanunforeseeneventunderminesaparty'sprincipalpurposeforenteringinto
acontract,andbe
frequentlyarisingasaresultofgovernmentaction,anythirdparty(orevennature)canfrustrate
acontractingparty'sprimarypurposeforenteringintothecontract.
Warranty
Incommercialandconsumertransactions,awarrantyisanobligationorguaranteethatanarticleor
servicesoldisasfactuallystatedorlegallyimpliedbytheseller,andthatoftenprovidesfora
specificremedysuchasrepairorreplacementintheeventthearticleorservicefailstomeetthe
hofwarrantyoccurswhenthepromiseisbroken,i.e.,aproductisdefectiveornot
asshouldbeexpectedbyareasonablebuyer.
Anticipatoryrepudiation
Anticipatoryrepudiation(oranticipatorybreach)isaterminthelawofcontractsthatdescribesa
declarationbyoneparty(thepromisingparty)toacontract,thatshedoesnotintendtoliveupto
9
uchaneventoccurs,theotherparty(theperformingparty)
r,therepudiationcanbe
retractedbythepromisingpartysolongastherehasbeennomaterialchangeinthepositionofthe
ctionoftherepudiationrestorestheperformer'sobligation
toperformonthecontract.
Tenderoffer
derofferisapublic,
openoffer(usuallyannouncedinanewspaperadvertisement)byanacquirertoallstockholdersofa
publiclytradedcorporationtotendertheirstockforsaleataspecifiedpriceduringaspecifiedtime,
eroffers,thebiddercontacts
shareholdersdirectly,ectorsofthecompany
nitedStates,tenderoffersareregulated
bytheWilliamsAct.
Acceptance
Acceptanceusuallyreferstocaseswhereapersonexperiencesasituationorcondition(oftenanegative
oruncomfortablesituation)withoutattemptingtochangeit,protest,misusedin
spirituality,inEasternreligiousconceptssuchasBuddhistmindfulness,andinhumanpsychology.
Religionsandpsychologicaltreatmentsoftensuggestthepathofacceptancewhenasituationisboth
dislikedandunchangeable,ancemay
implyonlyalackofoutward,behavioralattemptsatpossiblechange,butthewordisalsousedmore
meonemaydecidetotake
noactionagainstasituationandyetbesaidtohavenotacceptedit.
Fundamentalbreach
Afundamentalbreachofacontract,sometimesknownasarepudiatorybreach,isabreachsofundamental
thatitpermitsthedistressedpartytoterminateperformanceofthecontract,inadditiontoentitling
thatpartytosuefordamages.
Lien
Inlaw,alienisaformofsecurityinterestgrantedoveranitemofpropertytosecurethepayment
eroftheproperty,whograntsthelien,is
referredtoasthelienorandthepersonwhohasthebenefitofthelienisreferredtoasthelienee.
Treaty
Atreatyisanagreementunderinternationallawenteredintobyactorsininternationallaw,namely
ymayalsobeknownas:(international)agreement,
protocol,covenant,convention,exchangeofletters,lessoftheterminology,allofthese
internationalagreementsunderinternationallawareequallytreatiesandtherulesarethesame.(ote
thatinUnitedStatesconstitutionallaw,theterm"treaty"hasaspecialmeaningwhichismorerestricted
thanitsmeaningininternationallaw;seebelow.)
Treatiescanbelooselycomparedtocontracts:botharemeansofwillingpartiesassumingobligations
amongthemselves,andapartytoeitherthatfailstoliveuptotheirobligationscanbeheldliable
tralprincipleoftreatylawisexpressedinthemaxim
pactasuntservanda—"pactsmustberespected".
Asovereignstateisapoliticalassociationwitheffectivesovereigntyoverageographicareaand
usuallyincludesthesetofinstitutionsthatclaimtheauthority
tomaketherulesthatgovernthepeopleofthesocietyinthatterritory,thoughitsstatusasastate
10
oftendependsinpartonbeingrecognizedbyanumberofotherstatesashavinginternalandexternal
sovereigntyoverit.
Self-defense(orself-defence—seespellingdifferences)istheactofdefendingoneself,one's
propertyorthewell-beingofanotherfromphysicalharm.[1]Whilethetermmaydefineanyformofpersonal
defense,itisstronglyassociatedwithcivilianhand-to-hand[dubious–discuss]defensetechniques.
Self-defensedefinesacivilianactivityasopposedtoHand-to-handcombatinamilitarycontext.
TerritorialjurisdictioninUnitedStateslawreferstoacourt'spowerovereventsandpersonswithin
rtdoesnothaveterritorialjurisdictionover
theeventsorpersonswithinit,thenthecourtcannotbindthedefendanttoanobligationoradjudicate
orialjurisdictionistobedistinguishedfromsubject-matter
jurisdiction,whichisthepowerofacourttorenderajudgmentconcerningacertainsubjectmatter,
orpersonaljurisdiction,whichisthepowerofacourttorenderajudgmentconcerningparticularpersons,
subject-matterjurisdiction,territorialjurisdictionmaybewaived,even
unintentionally,aljurisdiction,territorialjurisdiction,subject-matter
jurisdiction,andpropernoticetothedefendantareprerequisitesforavalidjudgment.
Personaljurisdiction(UnitedStates)
PersonaljurisdictioninUnitedStateslawreferstoacourt'spoweroveraparticulardefendant(in
personamjurisdiction)oranitemofproperty(inremjurisdiction).Ifacourtdoesnothavepersonal
jurisdictionoveradefendantorproperty,thenthecourtcannotbindthedefendanttoanobligation
aljurisdictionistobedistinguishedfrom
subject-matterjurisdiction,whichisthepowerofacourttorenderajudgmentconcerningacertain
subjectmatter,orterritorialjurisdiction,whichisthepowerofacourttorenderajudgmentconcerning
subject-matterjurisdiction,personaljurisdictionmay
bewaived,evenunintentionally,aljurisdiction,territorialjurisdiction,
subject-matterjurisdiction,andpropernoticetothedefendantarethemostfundamentalconstitutional
prerequisitesforavalidjudgment.
Universaljurisdiction
Universaljurisdictionoruniversalityprincipleisaprincipleininternationallawwherebystates
claimcriminaljurisdictionoverpersonswhoseallegedcrimeswerecommittedoutsidetheboundaries
oftheprosecutingstate,regardlessofnationality,countryofresidence,oranyotherrelationwith
tebacksitsclaimonthegroundsthatthecrimecommittedisconsidered
acrimeagainstall,whichanystateisauthorizedtopunish,asitistooserioustotolerate
ceptofuniversaljurisdictionisthereforecloselylinkedtothe
ideathatcertaininternationalnormsareergaomnes,orowedtotheentireworldcommunity,aswell
astheconceptofjuscogens-thatcertaininternationallawobligationsarebindingonallstates
andcannotbemodifiedbytreaty.
Stateimmunity
Therulesofstateimmunityconcerntheprotectionwhichastateisgivenfrombeingsuedinthecourts
esrelatetolegalproceedingsinthecourtsofanotherstate,notinastate's
esdevelopedatatimewhenitwasthoughttobeaninfringementofastate'ssovereignty
rearenowsubstantial
exceptionstotheruleofimmunity;inparticular,astatecanbesuedwhenthedisputearisesfrom
acommercialtransac
newUnitedationsConventiononJurisdictionalImmunitiesofStatesandtheirProperty,whichisnot
yetinforce,notcovercriminalproceedings,
11
anditdoesnotallowcivilactionsforhumanrightsabusesagainststateagentswheretheabusehas
occurredinanothercountry.
Successionofstates
Successionofstatesisatheoryininternationalrelationsregardingtherecognitionandacceptance
ofanewlycreatedstatebyotherstates,basedonaperceivedhistoricalrelationshipthenewstate
oryhasitsrootin19thcenturydiplomacy.
Stateproperty
moststates,thestateownszoos,libraries,schools,andparks;someisreservedforrestricteduse,
suchasmilitarybasesandresearchlaboratories.
Governmentdebt(alsoknownaspublicdebtornationaldebt)ismoney(orcredit)owedbyanylevel
ofgovernment;eithercentralgovernment,federalgovernment,municipalgovernmentorlocalgovernment.
ationalityisatherelationshipbetweenapersonandtheirstateoforigin,culture,association,
affiliationand/alityaffordsthestatejurisdictionoverthepersonandaffordsthe
persontheprotectionofthestate.
ationaltreatment
ationaltreatment
ationaltreatment,ifastategrants
aparticularright,benefitorprivilegetoitsowncitizens,itmustalsograntthoseadvantagesto
ontextofinternationalagreements,
astatemustprovideequaltreatmenttothosecitizensofotherstatesthatareparticipatinginthe
edandlocally-producedgoodsshouldbetreatedequally—atleastaftertheforeign
goodshaveenteredthemarket.[1]
Diplomaticprotection
Ininternationallaw,diplomaticprotection(ordiplomaticespousal)isameansforaStatetotake
diplomaticandotheractionagainstanotherStateonbehalfofitsnationalwhoserightsandinterests
aticprotection,whichhasbeenconfirmedindifferentcases
ofthePermanentCourtofInternationalJusticeandtheInternationalCourtofJustice,isadiscretionary
righncludeconsular
action,negotiationswiththeotherState,politicalandeconomicpressure,judicialorarbitral
proceedingsorotherformsofpeacefuldisputesettlement.
Extradition
Extraditionistheofficialprocessbywhichonenationorstaterequestsandobtainsfromanothernation
nnationstates,extraditionis
ub-nationalregions(forexample,theindividualstatesoftheU.S.),
whereextraditionisrequiredbylawitismoreaccuratelyknownasrendition.
Rightofasylum
Rightofasylum(orpoliticalasylum)isanancientjuridicalnotion,underwhichapersonpersecuted
forpoliticalopinionsorreligiousbeliefsinhisorherowncountrymaybeprotectedbyanothersovereign
authority,aforeigncountry,orChurchsanctuaries(asinmedievaltimes).Politicalasylumshould
notbemistakenwithmodernrefugeelaw,whichratherdealswithmassiveinfluxofpopulation,while
therightofasylumconcernsindividualsandisusuallydeliveredinacase-to-casebasis.[
Condominium
Acondominium,orcondo,isaformofhousingtenureandotherrealpropertywhereaspecifiedpart
ofapieceofrealestate(usuallyofanapartmenthouse)isindividuallyownedwhileuseofandaccess
12
tocommonfacilitiesinthepiecesuchashallways,heatingsystem,elevators,exteriorareasisexecuted
underlegalrightsassociatedwiththeindividualownershipandcontrolledbytheassociationofowners
uially,thetermisoftenusedtoreferto
theunititselfinplaceoftheword"apartment".Acondominiummaybesimplydefinedasan"apartment"
thatthetenant"owns"asopposedtorents.
Internalwaters
Anation'sinternalwaterscoversallwaterandwaterwaysonthelandwardsideofthebaselinefrom
whichanation'sterritorialwatersisdefined.[citationneeded]Itincludeswaterwayssuchasriversandcanals,
ingtotheUnitedationsConventionontheLawof
theSea,thecoastalnationisfreetosetlaws,regulateanyuse,nvessels
havenorightofpassagewithininternalwaters,andthislackofrighttoinnocentpassageisthekey
differencebetweeninternalwatersandterritorialwaters.[
InternationalRivers
InternationalRiversisanon-profit,non-governmental,environmentalandhumanrightsorganization
basedinBerkeley,din1985byahostofsocialandenvironmentalactivists,
InternationalRiversworkswithaglobalnetworkofpolicyandfinancialanalysts,scientists,
journalists,developmentspecialists,localcitizensandvolunteerstoaddressdestructivedamsand
theirlegaciesinover60countries.
Territorialwaters
Territorialwaters,oraterritorialsea,asdefinedbythe1982UnitedationsConventionontheLaw
oftheSea,isabeltofcoastalwatersextendingatmosttwelvenauticalmilesfromthebaseline(usually
themeanlow-watermark)ritorialseaisregardedasthesovereignterritory
ofthestate,althoughforeignships(bothmilitaryandcivilian)areallowedinnocentpassagethrough
it;thissovereigntyalsoextendstotheairspaceoverandseabedbelow.
Prescription(law)
Prescription(law)isthemethodofsovereigntytransferofaterritorythroughinternationallaw
analogouiptioninvolves
theopenencroachmentbythenewsovereignupontheterritoryinquestionforaprolongedperiodof
time,actingasthesovereign,ctrine
legalizesdejurethedefactotransferofsovereigntycausedinpartbytheoriginalsovereign'sextended
negligenceand/iptioncanalsobesaidtohaveoccurredwhen,
inthecontextofaterritorialdispute,thesituationhasdevelopedtosuchadegreethattorestore
sovereigntytotheoriginal"rightful"sovereignwoulddisrupttheestablishedordertosuchadegree
astobeunfeasible;hencethetransferofsovereigntydejuretothenewsovereign.
Cession
Mostbroadly,cession(tocede)rnationallaw
nis"asurrender;ayielding;agivingup."[1]
Itisvoluntary,asopposedtoannexation,whichisforcible.[
Self-determination
Self-determinationisdefinedasfreechoiceofone’sownactswithoutexternalcompulsion,and
especiallyasthefreedomofthepeopleofagiventerritorytodeterminetheirownpoliticalstatus
rwords,itistherightofthepeopleofacertain
nationtodecidehowtheywanttobegovernedwithouttheinfluenceofanyothercountry.[1]Thelatter
isacomplexconceptwithconflictingdefinitionsandlegalcriteriafordeterminingwhichgroupsmay
[1]
13
legitimatelyclaimtherighttoself-determination.[2].Thisoftencoincideswithvariousnationalist
movements.
Referendum
Areferendum(pluralreferendumsorreferenda),ballotquestion,orplebiscite(fromLatinplebiscita,
originallyadecreeoftheConciliumPlebis)isadirectvoteinwhichanentireelectorateisasked
yresultintheadoptionofanewconstitution,
aconstitutionalamendment,alaw,therecallofanelectedofficialorsimplyaspecificgovernment
erendumorplebisciteisaformofdirectdemocracyideallyfavouringthemajority.
Innocentpassage
Innocentpassageisaconceptinadmiraltylawwhichallowsforavesseltopassthroughtheterritorial
tedStatesDepartmentofDefensedefines
innocentpassageas:
"Therightofallshipstoengageincontinuousandexpeditioussurfacepassagethroughtheterritorial
seaandarchipelagicwatersofforeigncoastalstatesinamannernotprejudicialtoitspeace,good
order,eincludesstoppingandanchoring,butonlyifincidentaltoordinary
navigationornecessarybyforcemajeureordistress,orforthepurposeofrenderingassistanceto
persons,ships,oraircraftindangerordistress."
Contiguouszone
Thecontiguouszoneisabandofwaterextendingfromtheouteredgeoftheterritorialseatoupto
24nauticalmiles(44km)fromthebaseline,withinwhichastatecanexertlimitedcontrolforthe
purposeofpreventingorpunishing"infringementofitscustoms,fiscal,immigrationorsanitarylaws
andregulationswithinitsterritoryorterritorialsea".Thiswilltypicallybe12nauticalmiles(22km)
wide,butcouldbemore(ifastatehaschosentoclaimaterritorialseaoflessthan12nauticalmiles),
orless,ifitwouldotherwiseoverlapanotherstate'r,unliketheterritorial
seathereisnostandardruleforresolvingsuchconflicts,andthestatesinquestionmustnegotiate
tedStatesinvokedacontiguouszoneon24September1999.
Anexclusiveeconomiczoneextendsfor200nauticalmiles(370km)beyondthebaselinesoftheterritorial
sea,thusitincludestheterritorialseaanditscontiguouszone.[3]Acoastalnationhascontrolof
alleconomicresourceswithinitsexclusiveeconomiczone,includingfishing,mining,oilexploration,
r,itcannotregulateorprohibitpassageorloiteringabove,
on,orunderthesurfaceofthesea,whetherinnocentorbelligerent,withinthatportionofitsexclusive
1982,coastalnationsarbitrarilyextendedtheir
territorialwatersinanefforttocontrolactivitieswhicharenowregulatedbytheexclusiveeconomic
zone,suchasoffshoreoilexplorationorfishingrights(seeCodWar).Indeed,theexclusiveeconomic
zoneisstillpopularly,thougherroneously,calledacoastalnation'ental
shelf
Thecontinentalshelfofacoastalnationextendsouttoitscontinentalmargin,butatleast200nautical
miles(370km)tinentalmarginisdefinedbyaseries
ofpointsnotmorethan60nauticalmiles(111km)apartwherethethicknessofsedimentaryrocksis
atleastonepercentoftheheightofthecontinentalshelfabovethefootofthecontinentalslope,
butnotmorethan60nauticalmiles(110km)tofthecontinentalslopeiswhere
tinentalmargincannotexceed350nautical
miles(648km)beyondthebaselinesoftheterritorialseaor100nauticalmiles(185km)beyondthe
2,500-metredepth,unless"naturalcomponentsofthecontinentalmargin,suchasitsplateaux,rises,
caps,banksandspurs"stalnationhascontrolofall
14
[2]
resourcesonorunderitscontinentalshelf,livingornot,butnocontroloveranylivingorganisms
abovetheshelfthatarebeyonditsexclusiveeconomiczone.[4]Irelandhasbecomeoneofthefirst
countriestodefineitscontinentalshelfinaccordancewiththeUconvention.
Protocols
Ininternationallawandinternationalrelations,aprotocolisgenerallyatreatyorinternational
colcanamendthe
previoustreaty,stotheearlieragreementarenotrequiredto
adopttheprotocol;sometimesthisismadeclearerbycallingitan"optionalprotocol",especially
wheremanypartiestothefirstagreementdonotsupporttheprotocol.
Declaration(law)
Inlaw,adeclarationordinarilyreferstoajudgmentofthecourtoranawardofanarbitrationtribunal
isabindingadjudicationoftherightsorotherlegalrelationsofthepartieswhichdoesnotprovide
hedeclarationismadebyacourt,itisusuallyreferredtoasa
mmonly,wheredeclaratoryreliefisawardedbyanarbitrator,itisnormally
calledadeclaratoryaward.
Retorsion
Retorsion(Frenchrétorsion,fromLatinretortus(influencedbyLateLatin,1585–95,torsi,
[1]
[
atwisting,wringing),AphraseusedinInternationalLawisanactperpetratedbyonenationupon
anotheriicalmethods
ofretorsionaretheuseofcomparablyseveremeasuresagainstcitizensoftheforeignnationfound
withinthebordersoftheretaliatingnation.[
Reprisal
Inwarfare,areprisalisalimitedanddeliberateviolationofthelawsofwartopunishanenemywho
lyexecutedreprisalisnotanatrocity.
Tobelegallyjustified,areprisalcanonlybedirectedagainstthepartycarryingouttheoriginal
violation,canonlybecarriedoutasalastresort,afterhavinggivenformalnoticeoftheplanned
reprisal,mustbeproportionatetotheoriginalviolation,musthavetheaimofpersuadingtheoriginal
violatortocomplywiththelegallyacceptedbehaviorinfuture,andmustnotcontinueaftertheillegal
behaviorends.
Mediation,aformofalternativedisputeresolution(ADR)or"appropriatedisputeresolution",aims
toassisttwo(ormore)tiesthemselvesdeterminethe
conditionsofanysettlementsreached—
disputesmayinvolve(asparties)states,organizations,communities,individualsorother
representativeswithavestedinterestintheoutcome.
Mediatorsuseappropriatetechniquesand/orskillstoopenand/orimprovedialoguebetweendisputants,
aimingtohelpthepartiesreachanagreement(withconcreteeffects)ly,
allpartiesmustviewthemediatorasimpartial.
Disputantsmayusemediationinavarietyofdisputes,suchascommercial,legal,diplomatic,workplace,
communityandfamilymatters.
Athird-partyrepresentativemaycontractandmediatebetween(say)
workers’uniongoesonstrike,adisputetakesplace,andthecorporationhiresathirdpartytointervene
inattempttosettleacontractoragreementbetweentheunionandthecorporation.
Conciliationisanalternativedisputeresolution(ADR)processwherebythepartiestoadispute
(includingfutureinterestdisputes)agreetoutilizetheservicesofaconciliator,whothenmeets
iationdiffersfrom
arbitrationinthattheconciliationprocess,inandofitself,hasnolegalstanding,andtheconciliator
15
usuallyhasnoauthoritytoseekevidenceorcallwitnesses,usuallywritesnodecision,andmakesno
award.
Conciliationdiffersfrommediationinthatthemaingoalistoconciliate,mostofthetimebyseeking
ation,themediatortriestoguidethediscussioninawaythatoptimizesparties
needs,takesfeelingsintoaccountandreframesrepresentations.
Inconciliationthepartiesseldom,ifever,actuallyfaceeachotheracrossthetableinthepresence
oftheconciliator.
Arbitration,aformofalternativedisputeresolution(ADR),isalegaltechniquefortheresolution
ofdisputesoutsidethecourts,whereinthepartiestoadisputereferittooneormorepersons(the
"arbitrators","arbiters"or"arbitraltribunal"),bywhosedecision(the"award")theyagreetobe
ettlementtechniqueinwhichathirdpartyreviewsthecaseandimposesadecisionthat
islegallybindingforbothsides.[1]OtherformsofADRincludemediation(aformofsettlementnegotiation
facilitatedbyaneutralthirdparty)rehelpful,however,
simplytoclassifyarbitrationasaformofbindingdisputeresolution,equivalenttolitigationin
thecourts,andentirelydistinctfromtheotherformsofdisputeresolution,suchasnegotiation,
mediation,ordeterminationsbyexperts,ationismostcommonly
usedfortheresolutionofcommercialdisputes,particularlyinthecontextofinternationalcommercial
ofarbitrationisfarmorecontroversialinconsumerandemploymentmatters,where
arbitrationisnotvoluntarybutisinsteadimposedonconsumersoremployeesthroughfine-print
contracts,denyingindividualsoftheirrighttoaccessthecourts.
Arbitrationca-binding
arbitrationis,onthesurface,r,theprincipaldistinctionisthatwhereas
amediatorwilltrytohelpthepartiesfindamiddlegroundonwhichtocompromise,thearbitrator
remainstotallyremovedfromthesettlementprocessandwillonlygiveadeterminationofliability
and,ifappropriate,anindicationofthequantumofdamagespayable.
Legalguardian
Alegalguardianisapersonwhohasthelegalauthority(andthecorrespondingduty)tocareforthe
personalandpropertyinterestsofanotherperson,y,apersonhasthestatusof
guardianbecausethewardisincapableofcaringforhisorherowninterestsduetoinfancy,incapacity,
untriesandstateshavelawsthatprovidethattheparentsofaminorchildare
thelegalguardiansofthatchild,andthattheparentscandesignatewhoshallbecomethechild'slegal
guardianintheeventofdeath.
Obligation
Anobligationisarequirementtotakesomecourseofaction,realso
obligationsinothernormativecontexts,suchasobligationsofetiquette,socialobligations,and
possiblyintermsofpolitics,re
generallylegalobligations,whichcanincurapenaltyforunfulfilment,althoughcertainpeopleare
obligedtocarryoutcertainactionsforotherreasonsaswell,whetherasatraditionorforsocial
tionsvaryfrompersontoperson:forexample,apersonholdingapoliticalofficewill
generallyhavefarmoreobligationsthananaverageadultcitizen,whothemselveswillhavemore
tionsaregenerallygrantedinreturnforanincreaseinanindividual’s
rightsorpower.
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