16. Key legal concepts Flashcards
Legal Person
a person who can enter into legal contracts
x7 Binding contract
- offer and acceptance
- considerations
- Capacity to contract
- Certain terms and free from doubt
- Intention to create a legal partnership
- Legality of object
- Entered into freely
Caveat Emptor
Buyer BewArE
Uberrima fides
Utmost good faith
3x things if there is a Breach of contract
- Damages
- Order of specific performance
- Injunction
Agent
Acts on behalf of the principal within specific boundaries to conclude contracts
Apparent Authority
Something either done or said by the principal that leads to the impression that they have authorised the agents actions
Principal
The party granting permission to the agent to act on their behalf
ratification
actions taken by the agent without authority
then later giving permission
realty
property deemed to be real (real estate )
Personalty
All other property
Joint tenants
100% owned by each
Tenants in common
regarded as a single owner
Power of attorney
Legal responsibility to act on behalf of another person
Enduring Power of attorney
Client starting to lose mental capacity
Donor
Person who makes a power of attorney
Donee
Person who is given power of attorney
referred as an attorney
Lasting power of attorney
Clients loss of mental capacity:
- Health and welfare
- Property and financial affairs
Formal Wills
- Must be in writing
2. Must be executed
Testator
Person who makes the will
Beneficiary
A person who benefits from the will
Codicil
Document that formally amends a will
Executor
Person named by testator as being responsible for carrying out the wills wishes
Grant of probate
Legal authority of executors to distribute estate
Deed of variation
legal agreement of beneficiaries to alter the terms of a will
Intestacy
No will left behind
Administrator
Person given role of distributing estate (intestacy )
Letters of administration
Legal authority to distribute the estate of a person
Intestacy
Settlor
The person who creates thee trust and originally owned the assets held
Trust Deed
Document that sets out how the trust is to be managed
By who and for whom
Trustee
Legal owner of property
with responsibility to take care and distribute trusts
Insolvency
Liabilities exceeds assets
Can not meet their financial obligation with reasonable time
Bankruptcy
£5,000+ in debt
Last 12 months
Individual Voluntary arrangement
Agreement by creditors who represent at least 75% of the value of the debt to reschedule payments
Company Voluntary Arrangement
Agreement by creditors who represent 75% of the value of debt . Aim of avoiding the business going into administration
Official Receiver
official appointed by the court to identify and distribute the assets of bankrupt individual
Insolvency practitioner
Appointed by court or receiver to identify and manage the distribution
