Glossary Flashcards
1
Q
abandonment
A
A tenant’s act of vacating the leased property with the intent not to return, implying that his or her occupancy has ended. Unless abandonment results from condemnation of the property or constructive eviction, the tenant remains liable under the lease.
2
Q
acceptance
A
An unequivocal acknowledgment of an agreement to the terms of an offer.
3
Q
accession
A
A common law principle under which a person acquires title to personal property by either mistakenly performing labour on it, or by incorporating additional property into it, so that the value added by the labour or additional property exceeds the value of the original property.
4
Q
accord and satisfaction
A
A compromise settlement of a contract claim. Accord is the agreement substituted for the original contract, and satisfaction is the performance of the substituted agreement.
5
Q
accounts receivable insurance
A
Indemnification or coverage for the financial loss that results when a business is unable to collect money owed because of damage to accounts receivable records, and for the expense of reconstructing the records.
6
Q
actual cash value (ACV)
A
The actual cost to replace lost or damaged property with new property of like kind and quality, minus a deduction for depreciation
7
Q
actual malice
A
The degree of fault that must be proven in a defamation case in which the plaintiff is a public official or public figure; that is, the defendant’s statement about the plaintiff must have been made either with knowledge of or reckless disregard as to its falsity.
8
Q
ACV
A
actual cash value
9
Q
additional insured or additional named insured
A
A person or business entity, other than the named insured, who has certain rights and coverage under an insurance policy.
10
Q
additional rent
A
A lease term that defines certain expenses that a tenant is obligated to pay in addition to periodic rent. Additional rent may include late payment fees, collection costs, pass-throughs of operating expenses in a net lease, sots incurred by the landlord to cure any tenant defaults, and other miscellaneous costs, expenses, and reimbursements.
11
Q
advanced premium mutual insurance company
A
A mutual insurance company that sets its premiums at a level that it believes will be adequate to pay loss expenses and build up the surplus of a company. If such premiums prove inadequate, these companies rarely have the right to asses the policyholders for the difference; but in a good year, dividends may be returned to the policyholders at the discretion of the board of directors.
12
Q
adverse possession
A
A statutory method of acquiring legal title to a property by taking open and notorious possession and control over the property, to the exclusion of all others, for a prescribed period of time.
13
Q
affirmative easement
A
An easement that allows the holder of the easement to go on grantor’s land for a specific purpose and to make use of the land in accordance with the terms of the easement.
14
Q
affirmative warranty
A
a condition that the insured promises exist at the inception of the policy period
15
Q
agency-billed
A
Refers to an insurance premium billed by the insurance agent.
16
Q
agent
A
One entrusted and authorized to act for another (a principal).
17
Q
agent (or broker) of record letter
A
Letter on the insured’s letterhead specifying which agent or broker the insurer recognizes as the insured’s agent.
18
Q
agreed amount provision
A
An insurance policy provision that waives the coinsurance requirement based on an agreement between the policyholder and the insurance company that the amount of insurance coverage purchased represents full insurance for the value of the property or loss of income insured.
19
Q
alienable
A
Able to be conveyed. Refer to the transferability of free simple estates in whole or in part by sale or by gift during the owner’s lifetime or at death.
20
Q
All risks form
A
Property form in which all causes of loss are covered unless specifically excluded or limited in the policy
21
Q
Amortize
A
To reduce a debt over a prescribed period of time, usually by equal monthly payments of combined principal interest.
22
Q
apparent authority (or ostensible authority)
A
In an agency relationship, apparent authority expands the scope of the agent’s authority beyond the authority explicitly given by the principal. This occurs when an agent acts outside the scope of the explicity terms of the granted authority but in a manner that the principal, through his or her conduct, knowingly allows.
23
Q
apparent consent
A
The consent that a reasonable person would infer from a plaintiff’s conduct.
24
Q
arbitration
A
A dispute resolution process involving the voluntary submission of a dispute to an arbitrator, who is disinterest nonjudicial party in a private tribunal.
25
article of incorporation
A formal document of incorporation that establishes a corporation when filed in the providnce of incorporation, the terms of which cannot be violated by the corporation
26
articles of organization
A formal document that legally creaters a limited liability company when filed in the state of formation.
27
asbestos abatement liability insurance
Insurance that covers an asbestos abatement contractor against claims of third-party bodily injury or property damage arising from asbestos abatement project.
28
asbestos-in-place insurance
Insurance that provides liability protection to property owners who decide to leave asbestos in place under an approved operations and maintenance program.
29
assault
An act intended to cause a harmful or offensive contact with the plaintiff or a third person, or intended to cause imminent apprehension of such contract, and where the plaintiff is thereby put in such imminent apprehension. The standards for criminal and civil assault vary slightly.
30
assessment mutual insurance companies
A mutual insurance company that concentrates on writing insurance for farm properties in rural areas of the country and that has the right to chargeback or assess policyholders for losses if the losses are more than expected.
31
assigned risk pool
A provincially established market for insurance risks that do not meet the normal underwriting criteria of insurance companies.
32
assignee
A party to whom contract benefits are assigned. Unlike a third-party beneficiary, the assignee acquires no rights under the contract until and unless a party to the contract (the assignor) transfers his or her rights by assignment.
33
assignment
A transfer of rights in a contract from a party (assignor) to someone who is not a party to the contract (assignee).
34
assumption
A delegtee's acceptance of a delegation of duties under a contract.
35
assumption of risk
A legal defence to negligence based on the plaintiff's express or implied assumption of the risk of injury or damage resulting from the negligent act.
36
attornment clause
A clause included in a formal subordination, attornment, and nondisturbance agreement between a tenant, lender, ad landlord under which the tenant agrees to recognize the lender as the successor to the landlord under the lease agreement in the event the lender subsequently becomes the owner of the mortgaged property.
37
attractive nuisance
The legal doctrine that makes the property owner negligent for having artificial conditions on the property that are both attractive and dangerous to children, such as tractors, open pits, or unattended swimming pools.
38
at-will employment
An employer-employee relationship that can be changed or terminated at any time by either the employee or the employer for any lawful reason. Contract to contractual employment, in which the terms of the employment relationship are covered by a contract.
39
auditing
The function of an insurance company that primarily ensures that it receives the proper premium based on the audited policy exposures.
40
automobile accident benefits coverage
Insurance to pay the medical expenses of injured persons occupying, entering, or leaving an automobile involved in an accident without regard to fault.
41
avoidance of loss exposures
A loss control method in which a business divides a loss exposure into parts to decrease the severity of a loss.
42
bailee
The person to whom personal property is delivered when a bailment occurs.
43
bailee for hire
A bailee who is compensated for caring for biled property.
44
bailment
The delivery of property to a person to be held in trust for a particular period of time. Base on an express or implied agreement that the property will be returned to the person who delivered it, or otherwise be dealt with as that person directs.
45
bailor
The person who delivers the personal property when a bailment occurs.
46
balloon payment
The lump-sum necessary to retire the remaining principal balance of a loan.
47
Bankruptcy and Insolvency Act
A federal statute that, under certain circumstances, permits a debtor to be discharged from his or her debts and contractual obligations.
48
base year
A term used to calculate a base amount of operating expenses for a long-term lease. Generally, the tenant would be expected to pay its proportionate share of any amount of increased expenses over the base.
49
battery
An act intended to cause a harmful or offensive physical contact to a person against that persons will or without justification and where that person, or another person, suffers such contact as a result. The standards for criminal and civil battery vary slightly.
50
beneficiary
The creditor party under a deed of trust in whos favor the deed of trust is granted
51
Best's Guide
The generally recognized authoritative source pertaining to the financial condition of insurance companies.
52
BFP
see Bona Fide Purchaser
53
bill of sale
A written receipt showing that personal property has been sold, transferred and paid for at a certain price.
54
Bind
To make insurance coverage effective.
55
blanket coverage
A single policy on the insured's property for two or more different kinds of property at the same location, the same kind of property at two or more locations, or two or more different kinds of property in two or more different locations.
56
bodily injury
under a CGL policy, refers to any bodily injury, sickness, or disease sustained by a person, including death resulting from any of these causes.
57
bona fide purchaser (BFP)
A person who buys property for value and without reason to doubt that the seller has good title.
58
breach
The failure (without legally recognized excuse) to perform as required in a contract. It affords the other party various remedies, including a claim for damages.
59
broad form property damage liability coverage
Insurance protection for those persons or companies, such as contractors, who typically work on the property of others. Instead of excluding damage to property of others altogether, this coverage restricts the exclusion to that particular part of the property on which work was being performed.
60
brownfield
An abandoned or underutilized industrial or commercial property with perceived or actual environmental contamination, often located in an urban area.
61
builder's risk insurance
Coverage for damage to a building under construction, including payment for the labour and materials needed to reconstruct the building
62
business owners policy (BPO)
A policy combining property, liability, and business interruption overage for various types of small businesses.
63
bylaws
The formal rules and regulations by which a corporation is managed and internally governed.
64
captive insurer
An insurance company set up by a business whereby the major customer is the business itself.
65
cash purchase
The 100 percent equity financing of real estate. The purchaser will not have to pay interest, loan commitment fees, or other finance charges and expense to finance the acquisition of the real estate.
66
caveat emptor
(Literally, "Let the buyer beware.") A principle of law that states that a purchaser of an item is responsible for examining and judging for himself or herself the acceptability of the item; that is, the purchaser buys at his or her own risk.
67
centralized management
Management of a business entity that is handled by a relatively small number of individuals as compared to the total number of owners.
68
certificate holder
The party to whom a certificate of insurance is issued.
69
certificate of insurance
Written verification of the types, terms, and amounts of insurance carried by the named insured, which is sent to those who require proof of such coverage.
70
certificate of limited partnership
A certificate that legally creates a limited partnership when it is filed with the province in which the limited partnership is formed.
71
CGL insurance
See commercial general liability (CGL) insurance.
72
chattels
Any movable personal property.
73
civil law
The body of law concerned with providing remedies to redress private grievances and the enforcement of private rights.
74
claims adjuster
The insurance representative who investigates and settles claims on behalf of the insurer.
75
claims-made policy
Liability insurance policy in which the claim must occur and be reported to the insurance company during the policy period
76
class rating
A system of rating risks in a standardized manner based on general characteristics the risks have in common.
77
closing
The settlement of a sale of real estate. At closing, the purchaser pays the purchase price to the seller, and the seller delivers the real estate deed to the buyer.
78
COLA
See cost of living adjustment.
79
collateral contract
A side agreement to the main contract in a situation in which the parties have essentially entered into two contracts--a written contract, and an oral contract that relates to a collateral matter.
80
collateral security
A pledge of assets by a borrower to a lender to secure the repayment of a loan.
81
collision insurance
A type of physical damage auto insurance that covers losses arising out of a collision or overturn of the vehicle.
82
combinable entities
Entities that can combine their insurance coverage. A rule of common ownership states that there must be more than 50 percent common ownership for entities to be combined for the purpose of insurance.
83
combined single limited (CSL) insurance
One limited for bodily injury liability and property damage liability combined arising out of the same occurrence.
84
commercial general liability (CGL) insurance.
Liability coverage for the negligent acts of the insured that cause bodily injury, property damage, or personal and advertising injury to others.
85
commitment fee
A fee paid by the borrower to the lender in consideration of the lender's processing of the loan application and commitment.
86
common carriers
Those in the business of transporting persons or property ofr compensation where such services are offered to the public generally.
87
comparative negligence
A legal doctrine that compares the relative fault of the plaintiff and the defendant in a negligence action and awards damages based on the defendant's percentage of fault.
88
compensatory damages
The damages awarded to compensate a plaintiff for actual harm or loss suffered from tortious conduct or breach of contract. Compensatory damages are intended to restore the plaintiff to the same position that the plaintiff was immediately prior to the injury or breach.
89
comprehensive insurance
A type of physical damage auto insurance to cover losses not caused by a collision or overturn of the vehicle.
90
comprehensive major medical plan
Standard comprehensive group health plan underwritten by insurance companies. These plans usually set deductible, coinsurance, out-of-pocket maximums, and overall maximum coverage limits
91
conditions
The section of an insurance policy that lays out the general ground rules of the insurance policy. It describes the rights and obligations of both the insured and the insurer.
92
confusion
A method of acquiring personal property through the blending, mixing, intermingling, or merging of goods so that they can no longer be distinguished.
93
consent
A tort defence. The voluntary agreement to an act or a proposal. Consent may be either expressed or implied.
94
consequential damages
Those damages that, although they are caused by the contract breach, do not result directly from the breach but rather from special circumstances.
95
consideration
That which is bargained for in exchange for a promise or performance.
96
construction loan
A loan for the purpose of financing the construction or substantial renovation of building and under other improvements. Construction loans are usually short in duration and typically extend only until the project is substantially completed, or until a new loan is secured for the project.
97
construction loan agreement
A loan document that sets forth the conditions for disbursement of construction loan funds.
98
constructive eviction
A landlord's deprivation of the tenant's use and enjoyment of the leased premises, causing the tenant to abandon or surrender the premises. The tenant's obligation to pay rent ceases after moving out.
99
Consumer Price Index (CPI)
An index published by Statistics Canada used to measure the cost of living increases. There are two types of consumer prices indexes that are frequently used in lease terms; The CPI-W (Urban Wage Earners and Clerical Workers Index), and the CPIO-U (All Urban Consumers Indes).
100
contingent loss-of-incomer insurance
Insurance that protects the insured from financial loss resulting from insured damage occuring at its principal customer's or supplier's premises or at an independent property.
101
contract
A legally enforceable agreement between two or more parties under which each party acquires certain rights from the other parties to the agreement in exchange for consideration. It is a promise or set of promises for which, if broken, the law gives a remedy, or the performance of which the law recognizes as a duty.
102
contract of adhesion
A contract offered to an individual or a small business as a standardized document to be accepted or declined without changes or bargaining.
103
contract of sale
A contract that typically specifies the purchase price and identifies the conditions that must be met in order for each party to complete conveyance of real estate.
104
contractual liability coverage
Insurance coverage for liability assumed in an insured contract or agreement and for liability the insured would have in the absence of that contract or agreement.
105
contributory negligence
That negligent behaviour by a plaintiff which, together with the defendant's negligence, contributes as a proximate cause to the plaintiff's injury and may bar recover from the defendant.
106
conversion
Any intentional or unauthorized act that permanently or indefinitely deprives the owner of possession of his or her personal property. Examples of conversion are disposing of another person's property, failing to return it as agreed, refusing to return it, or breaking it while it is one's possession.
107
conveyance
The transfer of an interest in real property from one party to another
108
corporation
A statutorily authorized entity that has a legal existence separate and apart from its owners.
109
cost-of-living adjustment (COLA)
Stop-loss insurance that limits that financial loss exposure of environmental remediation projects for owners who are clearning up non-operational assets (such as closed manufacturing facilities), investors purchasing contaminated properties, and those who have been identified as potentially responsible parties.
Also referred to as cleanup cost cap and remediation stop loss.
110
covenant
(1) A promise by one person (the covenantor) to another person (the covenantee) to do something on the covenantor's property or to refrain from doing something on the property that the covenantor could otherwise do.
(2) A promise in a conveyance of real property regarding the quality of title or interest being transferred.
111
covenant of possession
A common law covenant of a landlord giving the tenant exclusive possession and control of the leased premises. The landlord cannot enter the tenant's property unless the landlord reserves specific entry rights in the lease.
112
covenant of quiet enjoyment
A covenant generally implied in the landlord-tenant relationship. It gives tenants peaceful possession of the property, free of interference from the ats or claims of the landlord or certain third parties claiming rights through the landlord, and protection from title disputes between the landlord and anyone claiming superior title.
113
covenant of title
Any legally binding promise made by the seller of real property in the deed regarding the quality and completeness of the title to the real property being conveyed.
114
contractos pollution legal liability (CPL) insurance
Coverage that protects contractors from claims of third-party bodily injury and third-party property damage arising from pollution conditions cause during covered contracting activities.
115
CPI
see Consumer Price Index
116
creditor beneficiary
One who is not a party to a contract, but to whom a debt or obligation is owed by a party to the contract, which the performance of the contract is intended to satisfy.
117
criminal law
The body of law that defines certain acts as offences against the state and provides for the punishment of those acts.
118
CSL
see Combined Single Limit of Liability
119
cure
To rectify. Used in the sense of rectifying a default or breach under a contract before a forfeiture penalty is invoked.
120
damages
The monetary compensation that may be sought or awarded in court as a remedy for a tort of a breach of contract. The term is sometimes also used to mean the actual harm or loss suffered by a plaintiff.
121
deadly force
Any force that is likely or intended to cause either death or great bodily harm.
122
debt financing
A method of financing a purchase of real estate by taking out a loan, often secured by a lien on the purchased property.
123
debt service
Periodic payments made under a mortgage loan. Each payment normally include an amount for interest accrued since the last payment plus a principal amount that ultimately amortizes the loan.
124
deb service coverage ratio
A measure of the ability of a project to meet its debt service requirement. The debt service coverage ratio is determined by dividing the net operating income during any given period of time by the debt service for the same period of time. Also called 'debt coverage ratio' or simply 'coverage ratio.'
125
declarations
The headline page of an insurance policy that lists such important facts as the policy period, policy premium, policy number, types of coverages provided, and the name insured.
126
declaratory judgement
A judgment whereby a judge renders an opinion on the meaning of the disputed contract language or the obligations arising from it.
127
deductible
The amount or portion of a loss that must be paid by the policyholder before the insurance company is required to pay.
128
deed
A written instrument that is signed by the owner of real property and that conforms to certain formalities specified by provincial law in order to convey some right, interest, or title in property.
129
deed of trust
A legal instrument, similar to a mortgage, that grants a lien on real property to secure the performance of an obligation, usually the payment of a debt. Unlike a mortgage, a deed of trust involves a third-party trustee who acts for the benefit of the lender.
130
defamation
A false statement about a person communicated to another that significantly harms the reputation of the person.
131
defendant
The party who is sued in a lawsuit.
132
defined benefit plan
A retirement plan in which the benefits are fixed, but the amount of funds needed to pay for those fixed benefits at retirement is not specified.
133
defined contribution plan
A retirement plan that specifies the amount of the periodic contributions to the plan, but not the amount of retirement benefits the plan will provide. Those benefits are determined by the investment success of the funds set aside.
134
delegatee
A person or entity not a party to a contract that assumes duties under the contract delegated by a party to the contract.
135
delegation
A transfer of an obligation to perform a duty under a contract by a party to the contract (the delegator) to someone who is not a party to the contract (the delegatee) and who assumes the obligation.
136
delegator
A party to a contract who delegates duties under the contract to another, who is not a party to the contract.
137
deposit
A sum of money deposited by the purchaser of real estate with the seller or broker, in accordance with the contract of sale, in order to show that commitment and ability of the purchaser to complete the transaction.
138
deposit premium
An estimated policy premium based on an exposure basis that is subject to change, such as payroll or sales.
139
direct-billed
Refers to an insurance premium billed by the insurance company.
140
direct individual ownership
The ownership of real property by a single individual, being the simplest method of ownership because there is not separate legal entity to be formed, managed, and maintained. The individual owner is free to sell or otherwise dispose of the property, unless there is a contractual agreement to the contrary, and will personally incur any income or loss from the property as well.
141
direct property loss
Damaged to the property itself.
142
direct writing method
A sales system in which an insurance company uses employed salespersons to make direct personal contact with prospective policyholders. The insurance company owns the business produced by the salesperson.
143
directors' and officers' (D&O) liability insurance
Professional liability insurance for directors and officers of companies. It provides coverage in two basic areas: coverage for expenses incurred by the business when it is obligated to reimburse its directors and officer for their financial losses and expenses related to liability claims against them; an direct coverage for the losses and expenses of the directors and officers themselves when indemnification is not available from the business.
144
discharge
The release of contractual liabilities.
145
dissolution
An ending of a general partnership that occurs if any partner ceases to be associated with carrying on the partnership's business. Dissolution differs from a termination of the partnership in that, upon dissolution, the partnership continues to exist legally for the time needed to settle its affairs and liquidate its assets.
146
distraint and distress for rent.
A common law right of the LL to enter the TT's property, seize the TT's good, and hold them for public sale to offset unpaid rent. Some jurisdictions have modified it by statues to curb LL abuses, and still others have replaced it by a statutory lien for the benefit of the LL.
147
dividends
Profits from a for=profit corporation that are generally distributed to the stockholders in accordance with their proportional shares of the corporation's stock.
148
dominate estate
The property benefited by an easement on the land of another
149
donee
One who receives a gift.
150
donor
One who makes a gift.
151
donee beneficiary
One who is not a party to a contract, but who is intended to benefit from the performance of the contract as a gift from a contracting party.
152
draft authority
The delegation of authority to the agent to make payment on small claims.
153
dry closing
A mortgage loan closing that takes place prior to the actual funding of the loan, usually done for the convenience of the parties. The executed loan documents and deed (in the case of a purchase money loan) are held in escrow by a designated escrow agent, usually the title officer, pending the funding of a loan.
154
dual agency
When an agent acts for more than one principal. This can property occur only when both principals are made fully aware of the dual agency and consent to it.
