An accommodation bill is a type of bill of exchange signed by an individual who acts as a guarantor, ensuring the bill’s payment in case the acceptor fails to pay at maturity. These bills are often called windbills or windmills.
In accounting, arrears refer to a liability or an obligation that has not been settled by its due date. This can apply to various financial scenarios such as unpaid dividends, interest, salaries, or rent.
An attractive nuisance is a legal concept in the context of property law. It refers to a hazard on a property that is inherently dangerous and particularly alluring to children, causing the property owner to assume liability for any accidents that occur as a result.
A bailee is a person who has temporary custody of the personal property of another. The degree of liability for such property can vary depending on the circumstances and the terms of the bailment agreement.
A warning, often written to a potential buyer, advising them to be cautious; it is commonly used to minimize liability for potentially deceptive trade practices by a seller or broker.
The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) is a federal law designed to clean up sites contaminated with hazardous substances and to impose liability for cleanup on responsible parties.
In accounting, a debit (DR) refers to any entry recording an addition to an asset or expense account, or a reduction from a liability or equity account.
A statement in which the directors of a company announce that a dividend of a certain amount is recommended to be paid to the shareholders, and the liability is recognized when declared.
Discretion refers to the freedom of a person to make choices within the boundaries of their authority, as well as the quality of being cautious and considerate in what one says or does.
A provision in an insurance policy that indicates what is denied coverage, commonly including hazards deemed catastrophic in nature, wear and tear, property covered by other insurance, liability arising out of contracts, and liability arising out of workers' compensation laws.
A hold harmless agreement involves the assumption of liability through a contractual arrangement by one party, effectively eliminating the liability on the part of another party. These agreements are common in scenarios where one entity wants to minimize their risk exposure.
A Hold Harmless Clause is a provision in a contract where one party agrees to protect another party from claims and liabilities that may arise during the execution of the contract. Such clauses are critical for risk management in various business agreements.
Indemnity refers to the obligation to compensate an individual for loss or damage endured or anticipated. It involves a legal commitment whereby one party agrees to cover the financial consequences caused to another.
A legal wrong is an act that infringes upon a legal right, causing harm or loss to another party, which may lead to liability or legal consequences.
A liability is an obligation that a company needs to settle in the future, generally in the form of economic benefits such as money. Liabilities often result from past transactions and play a crucial role in a company's financial health by representing what it owes.
In the context of legal responsibility, the term implies the proportional assumption of liability by companies based on their market share, especially relevant in cases of product liability.
Liable means being legally responsible or obligated for something. It often relates to situations where a person or entity is required to uphold their part of a legal duty or may be subjected to penalties if they fail to do so.
A limited company is a type of company structure where the liability of members is restricted to their investment or guarantee amount.
A limited partner's liability is restricted to his or her investment in the partnership. Limited partners are often passive investors and do not participate in the day-to-day operations of the business.
In law, a mistake refers to an act or omission arising from ignorance or misconception which may justify rescission of a contract or exoneration of a defendant from tort or criminal liability depending on its nature or the surrounding circumstances.
A type of coverage in which an insured's own policy indemnifies them for bodily injury and/or property damage without regard to fault. This system is designed to simplify claims and reduce litigation in auto accidents.
Nonfeasance refers to the failure to perform a duty or responsibility to which one is legally bound, such as an unfulfilled contractual duty.
A method of owning real estate, which affects income tax, estate tax, continuity, liability, survivorship, transferability, disposition at death and at bankruptcy. Ownership forms include various structures with different legal and financial implications.
Piercing the corporate veil refers to the legal decision to hold shareholders or directors personally liable for the debts and obligations of the corporation. This process is invoked by a court to disregard the separate legal corporate entity status typically afforded to corporations.
Professional Indemnity Insurance (PII) is a form of third-party insurance that covers professionals, such as accountants or auditors, against compensatory claims arising from negligence or defective advice.
Pure Risk refers to situations where there is a risk of loss with no opportunity for gain. These conditions, such as fires, natural disasters, and liability issues, are where the need for insurance coverage is clearly indicated since there is only the risk of loss with no possibility of beneficial gain.
A legal standard used to determine the degree of care a reasonably prudent person would exercise in specific circumstances. Often crucial in tort cases, it helps to determine liability in scenarios involving potential negligence.
Respondeat Superior is a doctrine in agency law that holds a principal liable for the acts of an agent. This principle is crucial in determining liability and legal responsibility in various business and professional relationships.
A detailed explanation and examples concerning the term 'Sans Recours' or 'Without Recourse', often used in the world of finance and accounting to limit the liability of the seller.
An overview of the Special Multiperil Policy (SMP), which offers comprehensive insurance coverage for large businesses across property, liability, crime, and boiler/machinery.
Trespass refers to the unlawful entry or possession of another person's property without permission. It is a legal concept in property law covering physical intrusion on land, buildings, or personal space.
