Introduction to the Legal System - Glossary Flashcards

Question

Attachment

Answer 1

The first stage of the process of acquiring a security interest in personal property under the Personal Property Securities Act 1999. This usually occurs when the security agreement is signed. It must be followed by 'perfection' to give the security interest full protection under the law.

Answer 2

The delivery of goods by one person (the bailor) to the possession of another (the bailee) for safekeeping, storage or for work to be undertaken. The transfer imposes a duty of care upon the bailee to take reasonable care of the goods.

Answer 3

A status imposed on a debtor at the outcome of court proceedings or process as a result of which most of the bankrupt person's rights to deal with their property are suspended. Most property owned by the bankrupt is usually sold and the proceeds of sale paid to the creditors.

Answer 4

A person entitled to receive a benefit under the terms of

Answer 5

A proposed statute introduced to the House of Representatives that is usually amended after consideration by a select committee. Until it is passed by the House and assented to by the Governor-General it does not become law.

Answer 6

A court decision that lower courts are bound to follow if the material facts are similar. c.f. Persuasive precedent.

Answer 7

A general name for an entity recognised by the law as being a separate legal person from any natural persons that may be associated with it. Examples would be a local council (a municipal corporation) or a company registered under the Companies Act 1993

Answer 8

In good faith (in other words, honestly, with genuine intentions. (Latin)

Answer 9

The Wellington City Council failed to follow the proper procedures in compulsorily acquiring Boyd's land, but his challenge of the Council's title to the land failed. The Council had not acted with fraud, so acquired indefeasible title.

Answer 10

In contract law, where a party fails to comply with their obligations or promises under the contract.

Answer 11

The requirement imposed on a party to a court proceeding who has the responsibility of proving their claim to the standard required by law. This will almost always be the prosecution in a criminal case or the plaintiff or applicant in a civil case.

Answer 12

The category of delegated legislation passed by local authorities or councils.

Answer 13

In New Zealand a group of Members of Parliament chosen by the party or parties forming the majority in Parliament to head the executive branch of government. Cabinet Members will be Ministers of the Crown, each holding responsibility for one or more 'portfolios' - for example, Fisheries, Justice, Education, Courts, Police, Defence, Economic Development and so on.

Answer 14

In contract law, this refers to termination of a contract by one party to the contract because of a breach, repudiation, or misrepresentation by the other party, either based on an express right in the contract or by satisfying the requirements in section 7 of the Contractual Remedies Act 1979.

Answer 15

The legal ability of a person to enter into a binding contract. See, for example, Minor.

Answer 16

See Citation below.

Answer 17

See Headnote below.

Answer 18

Law made by the judgments of courts, including both equity and common law.

Answer 19

A collective name for the Members of Parliament of a political party - for example, the Labour Party Caucus.

Answer 20

A right recognised by the law for one party to seek redress through the civil court system for a wrong committed by another person. Examples of causes of action are negligence, nuisance, and breach of contract.

Answer 21

Short for 'compare with'.

Answer 22

Generally the term covers physical items such as goods - for example, a consumer appliance. Chattels are personal property, excepting leasehold interests in land that, for historical reasons, are classed as chattels real.

Answer 23

Interests in land that fall short of freehold, such as leases, are classified as chattels or personal property.

Answer 24

Intangible (non-physical) property that can be transferred by assignment - for example, company shares or debts.

Answer 25

Tangible (physical) property that can be transferred by delivery - for example, consumer goods or livestock.

Answer 26

The information that comes with the report of a court decision indicating where it can be found (for example, R v Blazina [1925] NZLR 407, which indicates that a case called R (the Crown) against a person called Blazina, can be found beginning at page 407 in the volume of the New Zealand Law Reports for 1925). 'Citation' may also refer to the quoting by a party in court of cases or statutes as authorities in support of their legal argument.

Answer 27

Private law concerned with laws affecting individuals, such as contract, property, family, and torts. These are matters generally between citizens, rather than the state bringing proceedings against an individual for beaching the criminal law, which would come under the category of criminal law.

Answer 28

The process of resolution of disputes between private individuals and/or corporations in the state- administered judicial system (the courts).

Answer 29

An informal expression that refers to a company in which the shares are held by a small number of people.

Answer 30

In the context of law this is a statement of law purporting to be the complete statement of law on a particular subject. A couple of examples of statutes that purport to be codifying statutes are the Minors' Contracts Act 1969 and the Contractual Mistakes Act 1977.

Answer 31

The enactment of certain common law and/or equitable principles into a statutory code, such as the law on cancellation of contracts set out in the Contractual Remedies Act 1979. It will usually mean the previous law is not relevant, although where the code is unclear the courts tend to fall back on the old common law to aid interpretation.

Answer 32

The personal property that is the security for a loan to which the Personal Property Securities Act 1999 applies.

Answer 33

The law developed by the courts, beginning in the eleventh century in England (as opposed to statute law made by Parliament) and still developing in the courts of common law countries such as New Zealand today. (The law was called 'common', as it was the standard law that the courts that travelled around England applied wherever the court sat, in contrast to some law that applied only in particular locations.) Common law differs from the law of equity because historically the Courts of Equity were separate from the Courts of Common Law. New Zealand courts of general jurisdiction apply both common law and the law of equity. See also Equity.

Answer 34

In common law, a type of mistake where both parties to a contract are mistaken about the same thing - for example, an agreement to buy an original painting, when unbeknown to the parties it's actually a copy. This is now governed by the Contractual Mistakes Act 1977. If mistake is present, the essential element of consent is missing from an agreement that would otherwise be an enforceable contract.

Answer 35

A company (almost always having shareholders with limited liability) set up under and subject to the requirements of the Companies Act 1993.

Answer 36

A person appointed by the shareholders to direct or manage the business of an incorporated company. The director is a separate legal entity to the company.

Answer 37

A person who has bought one or more units of ownership in a company. These units of ownership are called shares. The shareholder is a separate legal entity to the company. Shareholders elect the company directors, but, apart from any resolutions that may be passed at annual meetings, have no direct say in the daily running of the company.

Answer 38

A process of resolving disputes where an independent person helps parties to resolve issues that are obstacles to settling a dispute.

Answer 39

In contract law, refers to the meeting of the mindsrequired to make a binding contract, particularly referring to agreement on essential terms of the contract. (Latin)

Answer 40

In the context of the law of contract, consent is a necessary element required for a contract to be enforceable. For consent to be present, a party must have entered into the contract willingly without unlawful pressure, and must not have been misled as to the nature of the contract.

Answer 41

To form a contract, the acceptance of an offer must be unconditional. An attempted conditional acceptance is a new offer, and it cancels the original offer.

Answer 42

A contract, the completion of which is subject to the fulfilment of included and agreed conditions. These conditions generally suspend the operation of the contract until the conditions are satisfied - for example, an acceptance to buy the seller's property subject to the sale of the purchaser's property, usually within a fixed time and price range.

Answer 43

The price or value of the promise given by each party to a contract. Something of value must be given in return for the promise or act of another person for a contract to be formed. (See also 'Sufficient consideration' and 'Valuable consideration'.)

Answer 44

An Act of Parliament that repeals and re-enacts, with changes where necessary, a number of previous statutes, consolidating the pre-existing provisions in a single new Act. An example is the Sale of Goods Act 1908, which consolidated the old Sale of Goods Act as well as the Mercantile Act of 1890. It has the effect of keeping the old law relevant, often making it clearer and easier to find.

Answer 45

The rules and practices by which the government of a state is established and operated, covering the function and powers of the government, rights of citizens, and their relationship with the state. New Zealand has a constitution, much of which is unwritten and based on conventions (practices that are always followed and considered to be correct), but is also partly in writing in documents including the Constitution Act 1986, Letters Patent and, arguably, the Treaty of Waitangi.

Answer 46

The name of a set of rules that may be adopted by a company to limit or modify the rules that the company would otherwise have under the Companies Act 1993.

Answer 47

Reform of constitutional law in a statute covering some significant constitutional matters such as the composition of government, judiciary, Parliament and the ability of New Zealand to make its own laws.

Answer 48

A sovereign state governed in accordance with constitutional principles, with a monarch as the head of state, such as New Zealand.

Answer 49

An agreement that the law will enforce between two or more persons, the required elements of which are offer and acceptance, intention to create legal relations, consideration, capacity, consent, and legality.

Answer 50

See Capacity

Answer 51

See Consent above.

Answer 52

The remedies available to a party to a contract where another party to the contract has breached the terms of the contract. These remedies include, but are not limited to, those set out in the Contractual Remedies Act 1979.

Answer 53

A partial defence to an action in tort for negligence. If the defence is proved, damages awarded to the plaintiff will be reduced proportionately in relation to the plaintiff's share of fault in causing the loss that the plaintiff has suffered.

Answer 54

Constitutional rules (unenforceable in law, but recognised as important and to be followed) that direct traditional behaviour in constitutional matters. Examples include the existence and function of Cabinet, and the Governor-General acting on the advice (doing what he/she is told to do) of Ministers of the Crown.

Answer 55

A tortious act involving interference or use of another's goods without their consent.

Answer 56

The transfer of ownership of property.

Answer 57

Performing the practical steps required to transfer property between owners, together with other associated work.

Answer 58

A property right in original works such as books, paintings, and designs governed by the Copyright Act 1994.

Answer 59

Generally a group of people united in a common purpose and who form a separate legal entity - for example, a company or local authority.

Answer 60

A number of persons who are members of the same group, such as an incorporated company.

Answer 61

An incorporated entity comprised of a single person, usually created by statute, such as the Māori Trustee.

Answer 62

In the negotiating of a contract, where a new term, or new terms, are introduced by the party who has received the initial offer in responding to the offer, this amounts to a counter-offer and is not an acceptance of the original offer. The counter-offer cancels the original offer so that it cannot now be accepted. It is up to the party who receives the counter-offer to decide to accept or reject that counter-offer to determine whether a contract will or will not be made.

Answer 63

A court that hears appeals primarily from the High Court and the Employment Court, as well as from jury trials in the District Court. The Court of Appeal usually sits with a panel of three judges. Appeal from the Court of Appeal is to the Supreme Court.

Answer 64

These are state institutions (part of the judicial arm of government), where judges hear and decide civil disputes and criminal cases and also public law issues between individuals and the state. The courts have a hierarchy that allows appeals and establishes a ranking order of precedents.

Answer 65

An action that breaches certain state laws that define certain conduct as criminal, requiring the intervention and sanction (prison, fines, or other punishments) of the state to maintain law and order.

Answer 66

Where the Crown prosecutes in a state-administered court a person charged with a criminal offence, the case being heard either before a judge and jury, or before a judge alone.

Answer 67

In contract law, where two identical offers are made at the same time. No contract is formed, as there is no acceptance.

Answer 68

The Crown broadly is the state or Government of New Zealand.

Answer 69

A reference in published judgments meaning the court reserved its decision at the end of the hearing of a case and took time to make its decision. (Latin)

Answer 70

In relation to the land titles (Torrens) system, it refers to the principle that upon registration past events have no impact upon the register of title (subject to fraud in limited situations).

Answer 71

Money awarded by a court to a party as compensation for wrongs committed by another party. See also General damages, Exemplary damages, Liquidated damages and Substantial damages.

Answer 72

Compensation made to a plaintiff to put them in the position they would have been in if the contract had been performed by the other party. This refers to the expectation of the plaintiff - for example, the value a business purchased by the plaintiff would have had if the terms/promises in the contract were performed).

Answer 73

Compensation to put the plaintiff into the position they would have been in if the wrong had not occurred (the losses suffered, such as the damage to a building owned by the plaintiff).

Answer 74

A tortious action involving false representations made knowingly or recklessly where the person lacked actual and honest belief in the truth of the representations.

Answer 75

A written, signed, and witnessed document in a particular format set out in section 9 of the Property Law Act 2007 that does not require consideration to be enforceable. A contract by deed entered into before 1 January 2011 has a 12-year limitation period as opposed to 6 years for a simple contract.

Answer 76

The person being prosecuted or sued in a court case.

Answer 77

An agent who receives extra commission from the principal for assuming responsibility for the solvency of the customers of the principal (who enter into contracts through the agent). (Latin)

Answer 78

Laws made under the delegation of Parliament (in statutes), such as regulations (made by Ministers of the Crown) and bylaws (made by territorial authorities - local councils). These can be declared invalid by the courts if they infringe particular legal criteria.

Answer 79

See Company director.

Answer 80

An incapacity that limits the ability of a person to enjoy full legal rights, such as age (minors) or mental ability (for example, the effects of mental illness or Alzheimer's disease).

Answer 81

The termination of contracts can occur through the performance of all of the obligations of the contract, or by agreement (for example, accord and satisfaction), or by frustration, or by cancellation (because of breach, misrepresentation or repudiation).

Answer 82

The tribunal that hears disputes mainly relating to contracts up to a set monetary limit. It operates without being required to follow the usual rules of evidence or to apply the law to its decisions. The referee (not a judge) reaches a decision based on the substantial merits and justice of the case.

Answer 83

Given by a judge on a panel who disagrees with the majority decision and writes a separate judgment setting out the reasons for this.

Answer 84

The term used by a judge deciding that the facts of a previous case differ materially from the facts of the current case he or she is deciding, with the effect that the previous case will not be treated as a precedent for the case now being decided.

Answer 85

The court where the bulk of civil and criminal cases are dealt with. Covers claims for up to $350,000 and less serious criminal cases - includes Family and Youth Courts.

Answer 86

This case decided by the House of Lords in the 1930s, setting the template or formula for deciding if damages would be payable where one person suffered loss through the negligent action of another. The template briefly was: (1) Did the person who acted negligently owe a duty of care to the person suffering loss? (2) If so, was there a breach of that duty because the negligent person acted to a lesser standard than a reasonable person would have acted in those circumstances? (3) Was the loss the result of the negligent act?

Answer 87

Pressure from one party to a contract on another that is illegal and designed to force or coerce the other to enter into the contract. The contract is voidable by the coerced party.

Answer 88

A right given by the owner of one piece of land that gives some degree of access or use of that land to the owner of adjoining land, such as the right to use a driveway or lay and use drainage pipes.

Answer 89

A rule used in statutory interpretation referring to 'of the same kind'. So where a list of words (usually in a definition section of a statute) is followed by a general word, the general word will be interpreted to refer only to the same class of things covered by the specific words � for example, �spades, shovels, rakes and other implements� would include a garden fork but not household cutlery. (Latin)

Answer 90

A charge or mortgage (usually securing a debt) over land or personal property.

Answer 91

A power of attorney that continues in effect notwithstanding the descent into mental incapacity of the grantor. Enduring powers of attorney can be granted to deal with property or welfare rights or both. The relevant legislation is the Protection of Personal and Property Rights Act 1988.

Answer 92

The law in force in England. Part of this has historically been adopted as part of New Zealand law and is now New Zealand law only to the extent as is set out in the Imperial Laws Application Act of 1988.

Answer 93

A body of law developed by courts with equity jurisdiction to provide relief from the harshness of the common law, covering areas such as undue influence, unconscionable bargain and trusts, and including particular equitable remedies such as specific performance, injunction and rectification.

Answer 94

The situation where the law will not allow a person who has said or indicated something to deny what has been said or indicated where to make that denial would disadvantage another person. (The liability of a principal to those dealing with an agent with apparent authority is an example.)

Answer 95

In contract law, a provision removing or limiting the liability of a party under a contract for breach of contract or any tortious conduct.

Answer 96

If this is used in respect of a document it just means 'signed'.

Answer 97

In contract law, means where the consideration is the completion of an act at the same time, such as the handing over of money in a shop in return for the retail item.

Answer 98

The administrative branch of government that is responsible for policy provided to the government of the day. It covers the operation of public services and enforcement of law and order for the state, and includes the Executive Council.

Answer 99

This part of the executive is made up of the Prime Minister and Ministers inside and outside Cabinet. It is presided over by the Governor-General. Its main function is to pass Orders in Council (for example, passing delegated legislation).

Answer 100

In contract law, this refers to consideration where something is remaining to be completed. An example is a hire purchase contract where the title to a car is transferred once payment of all the instalments are completed by the purchaser.

Answer 101

Damages awarded where the conduct of the defendant toward the plaintiff was outrageous. Rarely awarded, the damages are a punishment against the wrongdoer rather than compensation for loss.

Answer 102

Someone who has undertaken to act for or on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence. (A definition framed by Millett LJ in Bristol and West Building Society v Mathew [1998] Ch 1.)

Answer 103

These include the duty to put the interests of the person owed the fiduciary duty above those of the person owing the fiduciary duty and for the person owing the duty not to make a personal profit from information gained during such a relationship. Lawyers owe fiduciary duties to their clients.

Answer 104

The electronic document registered on the Personal Property Securities Register that evidences a registered security interest in personal property.

Answer 105

Items that are attached to land or a building, such as a house on permanent foundations, which is in law viewed as part of the land.

Answer 106

In contract law, a form of consideration where a creditor agrees not to sue the debtor for a specific period of time. The agreement is enforceable by the debtor.

Answer 107

The place where disputes are heard and ruled upon - by courts and tribunals.

Answer 108

Acting dishonestly to obtain some object or outcome to which you have no legal entitlement.

Answer 109

A famous New Zealand case decided in 1967 that highlights the doctrine of indefeasibility of title to land except in the case of fraud by the registered owner. In this case a farmer who was the victim of fraud by his wife lost his land to an innocent purchaser who knew nothing of the fraud. The purchaser's title was held to be indefeasible.

Answer 110

An event that happens (after the parties enter into a contract) that is so drastically different from what the parties expected that the contract is ended - for example, the destruction of the subject matter of the contract. The rights and liabilities of the parties are governed by the Frustrated Contracts Act 1944.

Answer 111

Damages arising in the normal course (or 'naturally') from the breach. The court decides the actual amount to be awarded.

Answer 112

General partners manage the partnership and are liable for all debts and liabilities (usually only after the assets of the limited partnership itself have been exhausted in the payment of creditors).

Answer 113

A transfer of property without consideration (for free) to another person.

Answer 114

A common law rule of interpretation that words in a statute should be interpreted in a common sense way if the words read in another way lead to absurdity or inconsistency.

Answer 115

Goods are a category of personal property and are chattels. Specific definitions for the purposes of the Sale of Goods Act 1908 and Personal Property Securities Act 1999 are contained within those Acts.

Answer 116

In New Zealand, an appointed head of state with largely ceremonial functions, but also with powerful and important functions under the constitution - for example, to dissolve Parliament and appoint the Prime Minister.

Answer 117

Where one person (the guarantor) agrees to meet the debt of another person (the debtor), if the debtor defaults in paying the debt to the creditor. The guarantee must be in writing to be enforceable. c.f. Indemnity.

Answer 118

This is a court proceeding to challenge the legality of a person's detention in custody by the state. If an applicant is successful in his or her application for a writ of habeas corpus from the High Court, the remedy is for the Court to order the applicant's immediate release from custody. (Latin)

Answer 119

The published reports of proceedings, debates and speeches conducted in the House of Representatives.

Answer 120

The summary of the facts, applied law, and outcome that is usually found at the start of a reported court decision.

Answer 121

This case is authority for the law that there can be tortious liability for negligen

Answer 122

The system of having different levels of courts within a system of courts. This allows appeals from lower to higher courts within the system, legal weightings to be assigned to the precedents created by courts at each level, the appropriate division of workload within the system, and the establishment and operation of specialist jurisdictions.

Answer 123

The High Court has jurisdiction to hear cases on most areas of the law of New Zealand in both civil and criminal jurisdiction. It also has appellate jurisdiction from the District Court for non-jury trials and hearings. The High Court is the only court in New Zealand with inherent jurisdiction.

Answer 124

The name of the highest court in the United Kingdom until 2009, when its name was changed to the United Kingdom Supreme Court.

Answer 125

The law-making body of the legislature made up of elected and list Members of Parliament.

Answer 126

This Act sets out prohibited grounds of discrimination such as sex, marital status, race, ethnic origin, age, and disability. It is concerned with discrimination between the state and individuals, and discrimination between individuals.

Answer 127

These are contracts that are illegal at law or in equity. Examples are those to commit crimes, fraud, tax evasion, or breach of certain statutes – for example, the Commerce Act 1986. They are void. Relief may be granted by the court under the Illegal Contracts Act 1970.

Answer 128

This is protection granted by the state to a person against prosecution or legal proceedings. This occurs particularly in criminal cases where a key witness (implicated in the alleged offence) is granted immunity from prosecution.

Answer 129

In contract, these are terms that are not written into the contract but are implied in a contract so long as they don't contradict the express words of the contract. An example is the provisions of the Sale of Goods Act 1908 implied into sales of 'goods'.

Answer 130

Being unable to manage personal or property affairs or to enter into legally binding contracts. c.f. Capacity and Disability.

Answer 131

The shareholders of an incorporated company have limited liability unless its constitution says otherwise. Such a company is set up under and subject to the requirements of the Companies Act 1993, for example, Air New Zealand Limited.

Answer 132

A society set up and registered in accordance with the requirements of the Incorporated Societies Act 1908. They are 'not-for-profit' organisations (members can't receive dividends or distributions as do shareholders in incorporated companies) – for example, the Public Service Investment Society.

Answer 133

The completion of the steps required to be undertaken to enable registration as a company under the Companies Act 1993.

Answer 134

The land titles (Torrens) system provides the registered proprietor of an interest in land (for example, owner, mortgagee) with an an almost absolute right to the registered interest immediately upon registration of the interest on the title. This indefeasible title can be successfully challenged only if the registered proprietor acted fraudulently in acquiring the title.

Answer 135

That which is not able to be made void.

Answer 136

Where a person (the indemnifier) agrees to be primarily liable for all liabilities and losses of another person. There are two parties involved - the indemnifier and the creditor. c.f. Guarantee.

Answer 137

The power of certain courts (the High Court in New Zealand) to exercise power that is not conferred on it by the court rules or by statute that is necessary for the court to operate effectively within its jurisdiction. One example, which is rarely used, is that of excluding the public. Another is the power to punish for contempt. (The Family Court excludes the public as a matter of course, but this is through a power given in its statutory jurisdiction.)

Answer 138

An equitable remedy whereby a court orders a defendant (usually) to stop a specified activity or course of action that is harming or may harm the plaintiff. An example is a restraint of trade agreement where the court may order the defendant to cease competition with the plaintiff.

Answer 139

A person or other entity is insolvent when they/it cannot pay their/its bills. Insolvency is the status of a person or other entity in this situation. A company can be insolvent if its liabilities exceed its assets, even if it can pay its due debts.

Answer 140

Under the land titles (Torrens) system, this principle means that the fact of registration can be relied upon and in some circumstances compensation is available from the state.

Answer 141

The law will enforce agreements as contracts only where all of the requirements for a valid contract are present, including that the parties intended their agreement to have legal effect - as opposed to, for example, an arrangement made between family members where legal effect was not intended.

Answer 142

This is a communication that invites entry into negotiations to form a contract. An advertisement, for example, in law is almost always an invitation to treat. An invitation to treat cannot be 'accepted' to form a contract. See also Offer.

Answer 143

In a court decision this is the question that a court has to answer on the law and/or facts to complete its judgment. The answer to the issue or issues will provide the principle or principles of law (ratio decidendi) that the case may establish.

Answer 144

Where two or more partners or guarantors are liable for a debt, the creditor can sue any one of them for the whole of the debt.

Answer 145

A person appointed by the Crown to rule on disputes and prosecutions in relation to the jurisdiction held by the court. An important function is also to interpret the law. Judges are members of the judiciary and are protected from arbitrary dismissal. Their remuneration is also protected to ensure their independence.

Answer 146

The courts.

Answer 147

The decisions of previously decided cases that form a body of court-made law that must be considered by courts deciding similar cases on similar facts and law. See Binding precedents and Persuasive precedents.

Answer 148

An independent branch of government responsible for interpreting and applying the laws enacted by Parliament and creating its own case law. Its broad function, exercised through judges, is to hear and rule upon civil disputes between citizens and criminal prosecutions brought by the state. (Juries determine the conviction or otherwise of accused persons on serious criminal charges.)

Answer 149

The extent of the power given to a body or court. A court can only act validly while doing something that is within its power or jurisdiction. For example, the Family Court does not have jurisdiction to hear an employment dispute, but can hear and decide a child custody dispute.

Answer 150

See LINZ below.

Answer 151

Usually refers in New Zealand to the Torrens system and the LINZ or 'land transfer' registry where registration transfers legal title and protects the registered proprietor against most unregistered interests.

Answer 152

In the context of the administration of the estate of a deceased person, this refers to the failure of a gift because of the death of the intended beneficiary during the testator's lifetime.

Answer 153

A 'natural person' or 'artificial person' who in law is recognised as a separate legal person and is capable of having and exercising certain rights, powers and obligations.

Answer 154

The recognition by the law that the powers, rights and obligations that can be exercised by 'natural persons', such as the right of (some) human beings to enter into contracts, can also be exercised and owed by other entities. The legal personality of incorporated companies is derived from statute and begins for a company upon its registration. See Natural person, Artificial persons, and Corporation.

Answer 155

Laws (also known as acts or statutes) made by Parliament. c.f. Delegated legislation such as regulations and bylaws, and court-made law - common law and equity.

Answer 156

The former upper house of the New Zealand Parliament to which members were appointed rather than elected. Abolished in 1950.

Answer 157

The branch of government that in the Westminster system is the supreme lawmaker, making law in accordance with a predetermined and formal procedure. The House of Representatives is New Zealand's legislature, often referred to as Parliament.

Answer 158

A form of prerogative (made by the power conferred on the holders of an office) instrument issued by the monarch setting out the office and powers of the Governor-General, including the make-up of the Executive Council and the prerogative of mercy exercisable by the Governor-General. As a prerogative instrument it is enforceable independently of statute and the common law. Letters patent issued by the Crown of the United Kingdom in the early stages of New Zealand's development now form parts of its constitution.

Answer 159

A possessory security where an interest in property is protected by the person, with the interest having or retaining physical possession of the property. An example is the deposit of jewellery with a pawnbroker to secure a loan.

Answer 160

An interest in real property that is limited to the life of the person holding the estate - for example, the use of a house during the person's lifetime.

Answer 161

This Act limits the time within which court proceedings can be brought to enforce a civil right - for example, 6 years from the event in the case of tort, 6 years from a breach of contract, or 12 years from a breach if the contract was made by deed entered into before 1 January 2011.

Answer 162

This is the particular protection granted to shareholders of incorporated companies where not removed by the company's constitution. The shareholders' liability for the debts of the company is limited largely to any unpaid amount owing for the purchase of shares they own in the company. (Section 97 of the Companies Act 1993.)

Answer 163

Limited partners of a limited partnership are liable only to the extent of their capital contribution to the partnership. The identities of limited partners can remain confidential. They are not permitted to manage the partnership. If they do, they will lose their protection from full liability.

Answer 164

These are created under the Limited Partnerships Act 2008. Limited partnerships will have general partners who manage the partnership and are liable for all debts and liabilities (usually only after the assets of the limited partnership itself have been exhausted in the payment of creditors) and limited partners who are liable only to the extent of their capital contribution to the partnership. The identities of limited partners can remain confidential. These forms of entity are designed to assist investment in new enterprises. The name of a limited partnership must include the words 'Limited Partnership' or the abbreviation 'L.P.' or 'LP'. More information is available on the Companies Office website (go to www.limitedpartnerships.govt.nz). c.f. Special partnerships.

Answer 165

Short for Land Information New Zealand, the state- owned enterprise with the responsibility for administering the Land Registry in New Zealand.

Answer 166

Damages agreed by the parties to a contract in advance to apply in the case of a breach. They are common in commercial construction contracts - for example, failure to complete the project by a particular date.

Answer 167

This is the process through which a company ceases to have existence as a legal person. This usually occurs where a company cannot pay its debts and is liquidated (assets are sold and debts paid) through the court action of creditors, but members of a company can also put it into voluntary liquidation.

Answer 168

A common law rule of statutory interpretation to the effect that words are to be given their ordinary meaning - that is, words mean what they say. Note that this will be considered in the light of the purpose of the statute. See Purposive approach. c.f. Golden rule.

Answer 169

An Act of Parliament that applies only in a localised area of the country - for example, the Napier Foreshore Act 1927. See also Public Act and Private Act.

Answer 170

A right to appear and be heard, before a court or tribunal, in respect of particular proceedings, in which a person has a proper interest. (Latin)

Answer 171

The charter made initially in AD 1215 between the King and powerful citizens, and reaffirmed by Edward I in AD 1297, setting out some basic rights and freedoms, including limiting the power of the monarch, enshrining majority decision making and prohibiting unlawful imprisonment. This was a significant first step in the development of a parliamentary democracy and the protection of human rights.

Answer 172

The material facts are the ones that matter - those that have an impact on the consideration and outcome of the decision. An example would be a claim for damage from a motor vehicle accident allegedly caused by a red car exceeding the speed limit on the wrong side of the road. The facts about the speed and road position of the car are material to the issues to be resolved, but the colour of the car is not. See Binding precedent.

Answer 173

A private and confidential process to resolve disputes involving the appointment of an independent person to help the parties come to their own resolution of their differences. Most mediations occur outside of the state- run judicial system.

Answer 174

An entry in the register of land titles of an interest in land, made by the District Land Registrar in the manual registration process or by the solicitor for the purchaser at the conclusion of electronic registration - otherwise known as e-dealing.

Answer 175

A guilty mind - the mental requirement (of intention) for conviction of a criminal offence, except where an offence is a strict liability offence. (Latin)

Answer 176

A person who in the ordinary course of business possesses the goods of another for the purpose of sale (such as auctioneers). Buyers who purchase in good faith (for example, having no knowledge of an agent's lack of authority to sell) from such an agent obtain good title to the goods.

Answer 177

A person (under 18 years for contractual purposes under the Minors' Contracts Act 1969) who has some limits on their ability to enter into enforceable contracts. c.f. Capacity.

Answer 178

The statutory code that governs the enforceability of contracts entered into by minors.

Answer 179

Under the land titles (Torrens) system, the title document itself contains all of the relevant legal facts regarding title to the land.

Answer 180

A common law rule that looks at the reason why the statute was passed and interprets the provision to achieve the objects of the statute. See Purposive approach.

Answer 181

A false statement that induces a party to enter into a contract. This can be fraudulently or innocently made. c.f. Puff.

Answer 182

A situation that can arise whereby parties enter into a contract under a fundamental misunderstanding that nullifies the consent which is a necessary element of a valid contract. The law is set out in the Contractual Mistakes Act 1977. See Common mistake, Mutual mistake, and Unilateral mistake.

Answer 183

A security over land or personal property in favour of a lender securing a debt or other obligation.

Answer 184

At common law, a type of mistake where parties to a contract are at cross-purposes. For example, A owns two houses in the same street, side by side. A thinks he is selling number 47, while the buyer thinks he is buying number 49. This is now governed by the Contractual Mistakes Act 1977. If mistake is present, the essential element of consent is missing from an agreement that would otherwise be an enforceable contract.

Answer 185

A number of principles to be followed to ensure a person receives a fair hearing in respect of claims or charges brought against them, such as the right to know details of the charges, and the right to appear and be heard before a decision is made.

Answer 186

An individual person such as John Smith, as opposed to an artificial person (for legal purposes) such as an incorporated company - for example, Stagecoach Limited.

Answer 187

Documents that direct the payment of money to the payee or holder of the document. The right to payment can be transferred to another party other than the original payee. The most common examples are cheques and bills of exchange, governed by the Cheques Act 1960 and Bills of Exchange Act 1908 respectively.

Answer 188

1. Where the parties themselves seek to come to a decision or resolve a dispute through discussion without the assistance of an independent third person. 2. The transfer of a negotiable instrument and the rights attached to it from one person to another.

Answer 189

In relation to the sale of goods, means a person can't give a better title to goods than the title they legally have. For example, if A steals a car and sells it to B, then B does not get ownership, as A did not have true title to the car. There are exceptions - for example, sales by mercantile agents and also as set out in the Sale of Goods Act 1908. (Latin) Important note: This principle does not apply to the sale of real property, including land.

Answer 190

This Act sets out fundamental individual rights and freedoms, such as rights of life and security (from torture or medical experimentation), democratic and civil rights (voting, freedom of expression/religion/association/peaceful assembly), freedom from discrimination, and rights against unreasonable search/arbitrary arrest and arbitrary detention. The Act is concerned with the relationship between the state and individuals - that is, the protection of citizens against excessive behaviour by the state.

Answer 191

Minimal damages (for example, a dollar) where, although a plaintiff proves their case, they haven't suffered any real loss.

Answer 192

Means that the propositions of an argument do not justify the conclusions or inferences drawn from them. (Latin)

Answer 193

A rule of statutory interpretation that the meaning of a word can be found by looking at the words surrounding it. For example, if a reference to 'banks, walls, cliffs and ditches' is included in a statute, it is clear 'banks' refers to landscape feature and not a bank that holds customers' money. (Latin)

Answer 194

See Private nuisance and Public nuisance.

Answer 195

Statements about the law made by the court in a judgment that are not part of the necessary process in reaching the court's decision in a particular case. See Ratio decidendi and Persuasive precedent. (Latin)

Answer 196

In contract law, a sign, statement or act that indicates a person is ready to enter into a binding contract if the proposal being made by that person is accepted. See also Invitation to treat.

Answer 197

A binding contract giving a party a specific time within which to exercise a right to do something such as to buy or sell property. It is to be compared with a mere 'promise' to keep an offer open, which is unenforceable because there is no consideration.

Answer 198

Decisions of government passed by the Executive Council. They include the passing of regulations and the confirmation of appointments. Examples include Orders passed to make drugs such as 'Fantasy' or 'P' illegal to possess and sell under the Misuse of Drugs Act 1975.

Answer 199

The right of a court to hear certain types of cases from the beginning - for example, serious criminal cases are heard by the High Court.

Answer 200

See Apparent authority.

Answer 201

Decided court cases establish a legal rule or comply with an already established legal rule. This legal rule is what is called the ratio decidendi and lower courts, and often courts at the same level, when deciding later cases with the same material facts, have to accept and follow the rule established by earlier cases. However, if at a later time a court considers a case with the same facts and decides the earlier case was wrongly decided, the court can, if it is at a higher level than that in the earlier case, state that the earlier case was wrongly decided and the legal rule it established is incorrect. The court then produces its own decision and a new legal rule results from this. The court is said to have overruled the earlier court decision, which ceases to have the effect of being an accepted statement of the law.

Answer 202

The right to possess and deal with property to the full extent permitted by the law.

Answer 203

The House of Representatives (all members of Parliament) and the Governor-General, who together make and pass statutes into law.

Answer 204

This is a term for the various privileges, immunities, and powers held by Parliament, its elected members, its officers, and witnesses taking part in parliamentary proceedings - for example, select committee hearings. For New Zealand these are the same as existed for the British House of Commons as at 1 January 1865. These rights include the best-known privilege, the right of members of Parliament to free speech in Parliament, which became part of the law when article 9 of the Bill of Rights Act 1688 was enacted.

Answer 205

The concept of the Westminster system of government that Parliament has absolute power to make statutes. Statutes cannot be declared invalid by any other branch of government (c.f. the judiciary's power in relation to flawed delegated legislation).

Answer 206

A business organisation of two or more members, to which the law in the Partnership Act 1908 applies. Partnership law is not generally applicable to limited partnerships.

Answer 207

A doctrine of equity that allows enforcement where parties enter into a contract but don't satisfy an applicable statutory requirement, such as a requirement for contracts dealing with land to be in writing contained in the Property Law Act 2007.

Answer 208

In contract law, this is where the alleged consideration or promise of consideration is provided after the promise has been made or action carried out. Where the consideration is past, no enforceable contract results.

Answer 209

A privilege, being the right to benefit from the specific patent (usually relating to manufactured/technical items or processes) registered in the holder's name by the Crown.

Answer 210

A polite phrase used in a judgment of a court to the effect that another judge's earlier decision was mistaken, and will not be followed because it didn't consider all of the relevant legal authorities or apply them correctly. (Latin)

Answer 211

The second part of the process of acquiring a security interest in personal property under the Personal Property Securities Act 1999 that follows the first part of the process, attachment. Perfection is gained either by registration or on the taking of possession in the case of a possessory security such as a lien.

Answer 212

This term covers tangible property such as goods, chattels (choses in possession) and leasehold interests in land, together with intangible property (such as choses in action). Personal property is also referred to as 'personalty'. It includes broadly everything that is not land or permanently fixed to land.

Answer 213

A precedent that is not binding on the court, although the court may choose to take it into account and give to it such weight as it merits - for example, a particular decision of the High Court may be persuasive to the Court of Appeal.

Answer 214

The Act of Parliament that set up the Personal Property Securities Register, a national electronic register in which security interests over personal property are registered by registering financing statements.

Answer 215

A person who brings a civil claim in a court against another.

Answer 216

The right to control the physical custody of an item of property. This is part of the right of ownership, but possession may also be held legally by a non-owner - for example, by someone hiring a rental car.

Answer 217

In contract law, a rule relating to acceptance where posting a letter can be reasonably inferred as a contemplated method of acceptance - the contract is made upon the posting of the acceptance letter, not upon its receipt by the person making the offer. This rule is an exception to the normal requirement for communication of an acceptance to be made to the 'offeror' (the party who made the offer) before a contract can be formed.

Answer 218

A power given in writing by one person to another to perform legal actions, including signing legal documents on behalf of the person granting the power (the grantor). The power becomes void if the grantor loses his or her mental capacity to make reasoned decisions. See Enduring power of attorney above.

Answer 219

The doctrine by which judges follow earlier cases of superior courts in the hierarchy when coming to a decision where the same or similar facts arise. This results in the decision being consistent with the law in previous similar cases. See also Stare decisis and Ratio decidendi.

Answer 220

Rights or powers a person has because of the office that they hold, independently of any statutory provisions. For example, the Queen and the Governor-General have the prerogative power to appoint or dismiss a Prime Minister in particular circumstances.

Answer 221

Means 'at first sight'. For serious criminal cases a deposition hearing is held to decide whether there is a (prima facie) case for the accused to answer. If this is found, then the defendant will go to a full trial. (Latin)

Answer 222

1. The party who authorises an agent to act on his or her behalf in an agency arrangement. 2. A person who is an owner of an enterprise, such as a partner or the sole practitioner of a law firm. Note: Don't confuse this word with 'principle', which sounds the same but has a different meaning.

Answer 223

A Private Act of Parliament is one that applies only to a particular person or persons, or a non-governmental organisation. The McKenzie Trust Act 1954 is an example.

Answer 224

A tortious action where a person unreasonably interferes with their neighbour's enjoyment of their property - for example, tree roots growing through and interfering with the use of the neighbour's property. c.f. Public nuisance.

Answer 225

A doctrine of law that only a party to a contract can take the benefit or incur liability under the contract. The Contracts (Privity) Act 1982 allows a non-party to enforce the contract if the contract provides a benefit to that person.

Answer 226

Until 2004 this was the highest New Zealand court and was located in England. Since 2004, the Supreme Court of New Zealand, a New Zealand-based court, is New Zealand's highest court.

Answer 227

This is a right granted to the non-owner of land to remove something from the land - for example, mature timber from trees growing on the land.

Answer 228

An equitable doctrine that where a person makes a promise, intending it to have legal consequences, to the effect that they will not insist on enforcing their full legal rights under a contract, and the other party acts and relies on the promise, the promise can be used as a defence to prevent enforcement of the strict legal rights.

Answer 229

1. Something that can be owned. 2. The title or right to ownership.

Answer 230

The party, usually the Crown, that brings a charge on behalf of the state for criminal offences or other penal provisions in statutes.

Answer 231

An Act that applies throughout New Zealand and is applicable to all persons. The Holidays Act 2003 is an example.

Answer 232

A tortious action where a person's activity inflicts damage, injury, or inconvenience upon people who come within the scope of its operation - for example, a noisy speedway near a housing estate. Bylaws can cover aspects of public nuisance such as the noise control. c.f. Private nuisance.

Answer 233

A statement of exaggeration, so obviously an exaggeration that it has no legal significance, such as can be found in advertisements. c.f. Term and Misrepresentation.

Answer 234

In statutory interpretation, an approach where the court looks at the intention of Parliament when the statute was passed so as to give effect to that intention (refer to section 5 of the Interpretation Act 1999, which indicates the meaning of a statute must be ascertained from its wording having regard to the stated or apparent purpose of the statute). This statutory rule must be fully considered first in any case of interpretation, with the common law 'rules' resorted to only if there is still doubt about an interpretation.

Answer 235

A doctrine that applies where a party has breached its obligations under a contract but has not been paid for the work undertaken prior to the breach. The doctrine would allow the party to recover a reasonable sum for the work undertaken. This doctrine, where a contract exists, is probably covered by the Contractual Remedies Act 1979, but where there is no contract the doctrine can still apply. (Latin)

Answer 236

Similar to quantum meruit, but for goods supplied rather than for services supplied. (Latin)

Answer 237

The legal principle that a decided court case establishes. See also Precedent. (Latin)

Answer 238

This term covers land, attachments to the land ('fixtures'), and crops on the land, together with minerals under the land. (This class of property is also known as 'realty'.)

Answer 239

A receiver is appointed to take charge of some or all of a company's assets and business for the purpose of producing adequate funds to repay the debt owed to a secured creditor. A company for which a receiver has been appointed is classified as being 'in receivership'.

Answer 240

An equitable remedy where a court may order the correcting of the written terms of a contract because they fail to set out accurately the actual agreement of the parties.

Answer 241

The adjudicating officer in a disputes tribunal hearing.

Answer 242

An interest - for example, in land - that does not give the eventual full interest until a previous interest has ended. The usual example is where someone is given the right to live in a property for the rest of their life, with the property to pass to another person (often referred to as 'the remainderman') on the death of the person with the life interest.

Answer 243

Rules for administration of an Act. Regulations are a form of delegated legislation made by the Governor- General in the Executive Council.

Answer 244

In contract law, when a person who receives an offer rejects it (includes the making of a counter-offer, which is a rejection of an offer). This ends the offer and the party rejecting the offer cannot later purport to accept it and form a contract. The offer and acceptance process must begin afresh if a contract is to be made.

Answer 245

A remedy is the redress that the law provides to as far as possible put right the harm or damage someone has done by a breach of the law. A remedy could for example be damages (the payment of a sum of money) to as far as possible compensate someone for the harm or damage done to them or their property or an injunction (usually a court order to stop doing something) may be available to stop an unlawful act from causing more harm or damage.

Answer 246

An Act that repealed (cancels) an Act of Parliament that was in force until the time the repeal took effect.

Answer 247

The action of adding information to a register, usually a public register such as the Companies Register or the Personal Property Securities Register.

Answer 248

A statement of fact that is usually made during negotiations in relation to the making of a contract. It is not a term of the contract. If it is false, it may be actionable by the party to whom it is made. c.f. Term and Misrepresentation.

Answer 249

The reprinting of an Act incorporating the later amendments made to the original act. The Minors' Contracts Act 1969 is an example.

Answer 250

In contract law, when a party to a contract makes it clear to the other party that they will not perform their obligations under the contract – e section 7 of the Contractual Remedies Act 1979.

Answer 251

In the context of negotiations to form a contract, a statement asking for more information that is not an offer, counter-offer, or an acceptance.

Answer 252

An equitable remedy to restore the parties to the position they were in before the contract. It primarily relates to the sale of goods. Cancellation of other types of contracts is covered under the Contractual Remedies Act 1979.

Answer 253

Where a party agrees to limit their future activities in competition with another party. It has to be reasonable in terms of area and duration to be enforceable. Such clauses are often found in contracts of employment to minimise the risk of a successful employee leaving and setting up a business in competition immediately after leaving and in close proximity to the former employer.

Answer 254

The interest a person who has leased land to another has in that land because the rights that have been leased away will return at the end of the lease.

Answer 255

In contract law, when the person making the offer withdraws the offer before the offer is accepted.

Answer 256

A legal command, usually part of delegated law, such as the High Court Rules made by the Rules Committee of that court with power delegated by Parliament through the Judicature Act 1908.

Answer 257

A series of principles upon which the legal system and good government are ideally based to establish a fair and just relationship between people and the government - for example, all laws apply equally to all citizens regardless of their race, wealth, gender, or religion.

Answer 258

A penalty given as part of a judgment of a court. Examples range from imprisonment for criminal offences to financial penalties such as fines.

Answer 259

Usually, the interest that the lender of money has in the personal property of the borrower where that property is the collateral for a loan. Notice of such an interest can be registered by way of a financing statement on the Personal Property Securities Register to protect the lender's security interest in the collateral.

Answer 260

The punishment imposed by a court for a criminal offence.

Answer 261

A natural or artificial person that is considered by the law to have a separate existence from any people that might be associated with it. For example, a company is a separate legal entity from its directors and shareholders. A partnership, on the other hand, is not a separate legal entity from the partners of the partnership (although a limited partnership is).

Answer 262

The aspect of constitutional government that identifies the separation of functions of the three areas of government - legislative, judicial, and executive - so that a single element of government is not all-powerful.

Answer 263

Those persons who own part of the undertaking of a company by purchasing shares in it. Shareholders have rights under the Companies Act 1993 and may have further rights under the company's constitution (if the company has a constitution).

Answer 264

The most common type of contract can be written or formed by the spoken word and requires consideration to be valid and binding. It is any contract other than one made by deed.

Answer 265

A person who carries on business alone (they may employ staff) rather than as a partnership or through an incorporated company, and is personally liable for all of the debts of the business.

Answer 266

Where a designated territory is under the control of its own recognised body, exercising exclusively the right to make laws and institute government for the territory, and is recognised by the international community as the sovereign power of the particular state.

Answer 267

Damages that, while they are said to also flow naturally from the breach, are special or extraordinary to the particular case. See also General damages.

Answer 268

A type of partnership formerly able to be formed under the Partnership Act 1908. The sections relating to special partnerships were repealed by the Limited Partnerships Act 2008 from 2 May 2008. Existing special partnerships can continue to function for a limited time, but no new special partnerships may be formed.

Answer 269

An equitable remedy whereby a court may direct a party to comply with an obligation of a contract - for example, to transfer land to the purchaser. Note that the remedy is limited in scope and may not be awarded where damages are an adequate remedy or where there has been undue delay in bringing an application.

Answer 270

The degree of proof required to prove the plaintiff's, applicant's or prosecution's case to the required objective standard. In civil cases it is on the 'balance of probabilities', and in criminal cases the standard is 'beyond reasonable doubt'. c.f. Burden of proof.

Answer 271

The system of precedent used in the common law. Courts are bound to follow (decide the present case in accordance with the legal principle formulated by the previous case) decisions of superior courts that heard earlier cases with similar material facts. (Latin)

Answer 272

In contract law, when a person does not intend to make an offer but merely publicises that they wish to sell or buy goods or services.

Answer 273

The position of a person in the eyes of the law - for example, the status of children is governed in part by the Status of Children Act 1969.

Answer 274

A name for an Act of Parliament. It also covers rules of non-governmental bodies such as universities - for example, a university statute setting out the required standards of student conduct.

Answer 275

The technique of finding the true meaning of a provision in legislation, particularly when at first sight it might be unclear. See Golden rule, Literal rule, Noscitur a sociis, Purposive approach.

Answer 276

The collective term for delegated legislation such as regulations and rules.

Answer 277

Rules for administration of an Act. Regulations are a form of delegated legislation. Regulations deal with detailed matters and can be more easily changed than an Act. However, regulations must not attempt to do anything outside the powers Parliament has put into the Act under which the regulations are made, or they may be ruled to be of no effect by a court.

Answer 278

A word used in the Contractual Remedies Act 1979 referring to a term of a contract that, if broken, allows an innocent party to cancel and/or claim damages.

Answer 279

Where liability is assigned by the law without the need for the person being held liable to have been at fault. Liability of a landowner in Rylands v Fletcher (1868) LR 3 HL 330 for the escape of something not naturally occurring on the land is an example.

Answer 280

An order issued to a person (usually a witness) under the authority of the state to attend a court to give evidence. (Latin)

Answer 281

Damages that compensate a plaintiff for their actual loss (note that special damages and general damages are types of substantial damages).

Answer 282

A common law doctrine that if a person under a contract would not get paid until completion (an 'entire contract'), the court could award payment where the work had been substantially completed subject to any counterclaim by the other party for the cost of remedying any defects. Courts now have discretion under section 9 of the Contractual Remedies Act 1979 to award compensation.

Answer 283

Essential legal principles defining the rights, duties and powers of parties (as opposed to procedural law, which covers steps taken through the court system to have rights or obligations clarified or enforced).

Answer 284

A contract has to have real consideration to be binding, but it doesn't have to be adequate in a commercial sense of being a fair amount. Simple contracts require consideration to be binding (see Valuable consideration).

Answer 285

The ultimate appeal court for New Zealand, replacing the Privy Council from 2004. (The highest courts in some other countries such as the United Kingdom and the United States are also called the 'Supreme Court'. The New Zealand High Court was called the Supreme Court from 1841 until 1980.)

Answer 286

A term that refers to delegated legislation, which is other than legislation (made by Parliament) and statutory regulations (made by the Governor General by Order in the Executive Council). Examples are council bylaws and rules that Ministers of the Crown may be empowered to make.

Answer 287

A person who makes or has made a will identifying the recipients (and their particular share) of the person's property upon their death. Testatrix is usually used for females. The term 'will-maker' is used in the Wills Act 2007 to mean the testator or testatrix.

Answer 288

A civil wrong or harm caused by a person to another recognised by the common law as giving a right to seek redress (a cause of action) against the perpetrator. Examples are negligent acts, negligent misstatement, nuisance and defamation/libel.

Answer 289

A person who commits a tortious act.

Answer 290

Relating to the law of tort.

Answer 291

The passing of a legal right from one person to another, such as the right to own property. The form for transferring ownership in land is called an 'instrument of transfer', sometimes shortened to just 'transfer'.

Answer 292

(Tiriti o Waitangi) The agreement made in 1840 between the British Government (the Crown) and many Māori tribes setting out certain acknowledgements relating to sovereignty and the rights of Māori under the Crown's government.

Answer 293

See Administrative tribunals.

Answer 294

Equitable obligations under which a person (the trustee) is obliged to deal with property for the benefit of certain persons (beneficiaries) or for some lawful purpose (for example, a charitable purpose).

Answer 295

Means the utmost good faith is required. For example, in a contract of insurance the proposed insured has to disclose all factors known by the insured that are material to the risk being taken on by the insurer. (Latin)

Answer 296

This means outside the power. This phrase is used where a legal person performs an act beyond the legal power that they have. Delegated legislation, such as regulations or bylaws, can be declared ultra vires by a court. (Latin)

Answer 297

A one-sided agreement where one party takes advantage of the disability (for example, age, illness, illiteracy, commercial inexperience) of the weaker party to obtain an unfair bargain.

Answer 298

Where a person uses power or mental domination of another person to obtain an unfair advantage, usually in a relationship of trust and confidence, resulting in a lack of real consent by the weaker party.

Answer 299

Contracts that are properly made but are defective with respect to their form - for example, an oral contract for the sale of land. The contract is still valid as between the parties (if they both wish to honour it), but won't be enforced by a court if one party decides not to honour it.

Answer 300

In common law, this is a type of mistake where one party to a contract is mistaken about an element of the contract and the other party knows of the mistaken belief. This is now covered under the Contractual Mistakes Act 1979. If a mistake is present, the essential element of consent is missing from an agreement that would otherwise be an enforceable contract.

Answer 301

The highest court in the United Kingdom's hierarchy of courts, until 2009 called the House of Lords.

Answer 302

A contract the law will enforce.

Answer 303

An Act that makes legal something that has been done, usually by a public entity in the belief that what it was doing was lawful, but where that action has subsequently been discovered not to be lawful.

Answer 304

In contract law, consideration must have some value in the eyes of the law, however slight. If A sells his car to B at significantly less than its market value, the consideration is nevertheless 'valuable consideration'. Consideration has to be 'sufficient' - that is, something of value, but in law it does not have to be 'adequate' (it doesn't have to be the true or fair value of the car) for the contract to be enforceable.

Answer 305

When a person is legally liable for the actions of another person - for example, an employer for the negligent acts of its employees when the employees commit the negligent act in the course of their employment with the employer.

Answer 306

Situation in which there was never a valid contract at all, such as when the purported contract contravened a statute ruling such arrangements as void or infringed against public policy set by the courts.

Answer 307

A contract that, because of a defect in the contract (such as lack of capacity or a misrepresentation), the 'innocent' party can apply to the court to have it set aside, or decide to perform it.

Answer 308

A complete defence if accepted by a court to a tortious claim in negligence to the effect that the person injured or suffering loss knew of the risk and consented to it. (Latin)

Answer 309

See Volenti non fit injuria.

Answer 310

A tribunal established under the Treaty of Waitangi Act 1975 that hears grievances arising from alleged breaches of the Treaty of Waitangi and makes recommendations to government on the validity of claims and, where established, how they might be resolved.

Answer 311

A style of government modelled on that of the United Kingdom that meets at Westminster, London, with a legislature, Cabinet, Prime Minister, and non-elected head of state - for example, the Queen or Governor- General. This style of government is based on a substantial separation of government powers between the three 'arms' of government - the legislature, courts and executive - but not a complete separation of powers (as, for example, in the United States).

Answer 312

This informal expression refers to a company with a larger number of shareholders than a closely held company - usually over 25. Companies listed on the stock exchange are widely held companies.

Answer 313

Used in the Wills Act 2007 as a simple way of referring to a testator or testatrix.

Answer 314

Someone who sees something happen or testifies in court as to what they know, have seen, have heard, or have done. For example, a witness to a will is someone present who sees the will-maker sign the will and then adds their own signature, place of residence and occupation or status in the appropriate place after the will-maker's signature. This provides evidence of the proper signing of the will or other document by the person named as signatory.