Definitions Flashcards
Civil Law
Body of Law concerned with cival or private rights and remedies.
Tort
A private or civil wrong or injury, other than breach of contract, for which the court will provide a remedy in the form of an action for damages.
Breach of Contract
Failure, without legal excuse, to perform any promise which forms the whole or part of a contract
Rule of Precedent
Court decisions must follow those made in cases having similar circumstances
Statute Law
Written Law. Supersedes Common Law.
Damages
Compensation in money for the loss or damage suffered.
Compensatory Damages
Compensate the injured party for the bodily injury or property damage sustained.
General Damages
Damages which cannot be exactly determined in monetary terms, but reflect an amount that the court believes necessary to compensate the aggrieved party fairly.
Special Damages
Damages which can be measured as to amount and are often referred to as out of pocket expenses.
Exemplary or Punitive Damages
Damages which are intended to punish defendants for their behaviour or to make an example of them
Nominal Damages
When there is no substantial loss or injury to be compensated, and the reason for the case is just to establish the validity of the plaintiff’s claims. Low as $1, meant to discourage the pursuit of litigation.
Doctrine of Negligence
Duty of all persons to exercise due care in their conduct towards others from which injury may result.
Negligence
The failure to do something which a reasonable man, guided by those ordinary considerations which ordinarily regulate human affairs, would do, or the doing of something which a reasonable and prudent man would not do.
Strict Liability
Person conducting the activity is presumed to be legally liable in the event of injury or damage because the activity is incredibly hazardous.
Occupier
A person who has the immediate supervision and control of the premisies and the power to admit and exclude the entry of others.
Nuisance
Everything that endangers life or health, gives offence to senses, violates the laws of decency, or obstructs reasonable and comfortable use of property.
Trespass
An unlawful interference with one’s person, property or rights.
Easement
Right of persons to use land belonging to others.
False Imprisonment
Holding someone without lawful justification in a place against their will (eg - Walmart store detective)
False Arrest
Falsle imprisonment with the intention of having the victim turned over to police.
Malicious Prosecution
- Complainant was arrested and later released
- Complainer only wanted to harass or humiliate the victim
Defamation
A statement that causes unjustified injury to the reputation of another person and which results in the loss to that person of the esteem, confidence, respect and goodwill of a considerable part of the community.
Slander
Spoken Defamation
Libel
Written Defamation
Aggregate Limit
The most the policy will pay during the policy period for all claims which insurance is provided.
Bill of Lading
A document issued by the carrier responsible for transporting or forwarding the goods
Agreed Value
A fair value of the shipment agreed to in advance by the insured and insurer.
Freight
The money payable either for the hire of a vessel or for the conveyance of cargo from one port to another.
Actual Total Loss
A loss in which the subject property is totally lost or is so badly damaged that it has no value left.
Constructive Total Loss
Occurs when the cost of salvaging the cargo is too high relative to the value saved.
Particular Average
Involves a partial loss to a specific shipment, other than a General Average.
General Average
Payment for marine losses voluntarily incurred for the saftey of the entire venture. The parties whose property was saved shall contribute to the losses of the parties whose property was sacrificed.
Surety
State of being sure, certain and secure.
Suretyship
The guarantee of performance made by one person or entity for another.
Surety Bond
An undertaking by one party (the surety) to become accountable to another party (th eobligee) for the performance of an obligation or undertaking by a 3rd party (the principal). Promise to provide credit, if + when needed, to ensure the faithful performance of an obligation.
Obligee
- Party to whom someone else is obligated under a contract
- Party to whom the bond is given
Principal
The person primarily liable
Penalty
- The amount of credit given to the principal by the surety
- The amount which the surety is prepared to pay in the event the principal should default
Statutory Bond
One that is required by a municipal ordinance, or federal or provincial regulation or statute.
Non-Statutory Bond
Not required by law but flows from the contract or agreement between the parties
Contract Bond
Guarantees the fulfilment of certain obligations required under public and private contracts.
Consent of Surety
A letter assuring the owner that if the principal is the successful bidder, the surtey will issue such other bonds as are specified to ensure the performance of the contract.
Working Capital
The amount of funds available to pay continuing business operating expenses until payment is received for work being undertaken by the contractor.
Net Worth
The amount of money remaining after all assets have been liquidated and all liabilities cleared.
Licence
Issued by a regulatory body such as government in order to set rules and regulations to safeguard the public.
Permit
Fulfils same general function as a licence, except that they are usually required as prerequisites to performing special functions incidental to the operation of the business.
Risk Management
The process of making and carrying out decisions that will minimize the adverse effects of accidental losses upon an organization.
Loss Exposure
The chance of a financial loss to an organization as a result of a particular peril striking a thing of value.
Tangible Property
Property that is real, can be touched, and has form and substance.
Going Conern Value
The difference in the value of property which must be sold after a loss and its value had the business continued.
Intangible Property
Property that has no physical substance and consists of legal rights rather that things.
Expediting Costs
The extra costs incurred in hastening the recovery of a business after a loss.
Risk Control
Concerned with paying those losses that inevitably occur.
Risk Financing
Concerned with paying those losses that inevitably occur.
Segregation
Arranging an organization’s activities and resources so that no single event can cause simultaneous losses to all of them.
Separation
Dividing an organization’s single asset of operation into 2 or more separate units.
Duplication
Complete reproduction of an organization’s own “standby” asset or facility to be kept in reserve.
Retention
All means of generating funds from within the business to pay for losses.
Contractual Transfer
All means of generating funds from outside the business to pay for losses.
