Key terms Flashcards
Civil Law
The body of law concerned with civil or private rights and remedies
Tort
A private or civil wrong or injury, other than a breach of contract, for which the court will provide a remedy in the form of an action for damages
Breach of Contract
Failure without legal excuse, to perform any promise which forms the whole or part of a contract
Rule of Precedent
Current court decisions must follow those made in cases having similar circumstance
Statute Law
“Written Law” Created by federal and provincial legislation and supersedes or amends common law.
Damages
Compensation in the form of money for the loss or damage suffered
Compensatory Damages
Compensate the injured party for the bodily injury or property damage sustained
General Damages
Damages which cannot be exactly determined in monetary terms, but reflect an amount the court believes necessary to compensate the aggrieved party fairly. e.g pain and suffering.
Special Damages
Damages which can be measured as to amount. often referred to as out of pocket expenses.
Exemplary or Punitive Damages
May be awarded to the plaintiff over and above those provided as compensatory damages, purpose is to punish the defendants
Nominal Damages
Establish the validity of the plaintiffs claim when a question of principal is at stake.
Doctrine of Negligence
Duty of all persons to exercise due care in their conduct towards others from which injury may result
Negligence
(Must be proven and plaintiff must show) fault or failure of the defendant to exercise reasonable care.
Strict Liability
Certain actives are so hazardous that in the event of injury or damage arising out of them, the person conducting the activity is presumed to be legally liable.
Occupier
Person who has the immediate supervision and control of premises and the power to admit and exclude the entry of others.
Nuisance
Everything that endangers life or health, gives offence to senses, violates the laws of decency or obstructs the reasonable and comfortable use of property
Trespass
Unlawful interference with one’s person, property, or rights
Easement
A right of persons to use land belonging to others
False imprisonment
Holding someone without lawful justification in a place against their will.
False arrest
Includes false imprisonment, detaining victims with the intention that they be turned over to the police for prosecution.
Malicious Prosecution
The complainant was arrested then later released; evidence reveals that the person making the complaint did not have an honest belief that a crime had been committed, but was guided by other improper motives (such as a desire to harass or humiliate the victim.)
Defamation
A statement that causes unjustified injury to the reputation of another person and which results in the loss to that person of the esteem, confidence, respect and goodwill of. a considerable part of the community.
Slander
Spoken defamation
Libel
Written defamation
Aggregate Limit
Stated on declarations. The most the policy will pay during the policy period for all claims for which insurance is provided.
Bill of Lading
A document issued by the carrier responsible for transporting or forwarding the goods. (Contract of carriage btwn shipper and owner, receipt for the goods, doc of title to the goods)
Agreed Value
Insurer and insured be permitted to agree in advance upon the fair valuation of any shipment.
Freight
Money payable either for the hire of a vessel or for the conveyance of cargo from one port to another.
Actual Total Loss
Subject property is totally lost or is so badly damaged that it has no value left.
Constructive Total Loss
Cost of salvaging the cargo is too high relative to the value saved.
Particular Average
Partial loss to a specified shipment, other than a general average.
General Average
Payment for those losses voluntarily incurred for the safety of the entire venture.
Surety
The state of being sure, certain and secure
Suretyship
Guarantee of performance made by one person or entity for another.
Surety Bond
An undertaking by one party (the surety) to become accountable to the other party (the obligee) for the performance of an obligation by a third party (the principal)
Obligee
The party to whom someone else is obligated under a contract
Principal
The person primarily liable
A surety
One who undertakes to pay money or to do any other act in the event that the principal fails (answers for the default of the principal)
Penalty
Bond Limit; Reflects the amount of credit given to the principal by the surety
Statutory Bond
Required by municipal ordinance, or federal or provincial regulation or statute.
Non-Statutory Bond
Not required by law but flow from the contract of agreement between the parties
Contract Bond
Guarantee the fulfilment of certain obligations required under public and private contracts.
Consent of Surety
Letters that assure the owner that if the principal is the successful bidder, the surety will issue such other bonds as are specified to ensure the performance of the contract.
Working Capital
The amount of funds available to pay continuing business operating expenses until payment is received for the work being undertaken by the contractor (wc=current assets-current liabilities)
Net Worth
Established by calculating the amount of money left after all assets have been liquidated and all liabilities cleared.
Licence
permit from an authority to own or use something, do a particular thing, or carry on a trade
Permit
Fulfill same functions as licence, usually required as a pre-requisite to perform special functions incidental to the operation of the business.
Risk Management
The application of a rational process to risk. Making/Carrying out decisions that will minimize the adverse effects of accidental losses upon an organization)
Loss Exposure
The chance of financial loss to the organization due to a particular peril striking something of value.
Tangible Property
Real, can be touched and has form and substance. e.g. land.
Going Concern Value
The Difference in the value of property which must be sold after a loss and its value had the business continued.
Intangible Property
No physical substance. Consists of legal rights rather than things. e.g. stock bonds
Expediting Costs
The extra costs incurred in hastening the recovery of a business after a loss. e.g. advertising
Risk Control
Objective is to reduce the frequency and severity of losses as much as possible with the resources available.
Risk Financing
Concerned with paying those losses that inevitably occur.
Segregation
Involves arranging an organizations activities and resources so that no single event can cause simultaneous losses to all of them.
Seperation
Dividing an organization’s single asset or operation into two or more separate units.
Duplication
Complete reproduction of the organizations own “standby” asset or facility to be kept in reserve.
Retention
All means of generating funds from within the business to pay for losses.
Contractual Transfer
All means of generating funds from outside the business to pay for losses.
