Legal team Flashcards
What are common laws?
Meaning: Common law is a legal system based on precedents, i.e., previous court decisions. Judges rely on past cases to interpret the law and make rulings.
Features:
Originated in England and is used in countries like Singapore, the UK, and the US.
Flexible and evolves through judicial decisions.
Focuses on case law (decisions made by judges) rather than written statutes alone.
What is a cap table?
Meaning: A capitalization table (cap table) is a document that outlines a company’s ownership structure. It shows:
Who owns shares: Founders, employees, investors.
How many shares they own.
The percentage ownership each person or entity has.
Purpose: Used by startups to track equity and to plan for fundraising rounds.
What is a judiciary?
Refers to system of courts that interprets and applies the law in the name of the state. It includes judges, courts, and the legal processes involved in resolving disputes.
What is a court?
A court is a legal body authorized to resolve disputes and administer justice. It involves:
Hearing cases (civil, criminal, or constitutional).
Making judgments based on laws and facts.
Courts are often structured in a hierarchy, where higher courts handle appeals or more serious cases.
What are the different stages of courts where the cases are examined?
Stages of Courts in Singapore
Singapore’s legal system is hierarchical. Cases are examined at different levels of courts:
State Courts:
Handles less serious cases.
Includes District Court, Magistrate’s Court, Small Claims Tribunals, and Family Justice Courts.
High Court:
Handles more serious criminal and civil cases.
Also hears appeals from the State Courts.
Court of Appeal:
The highest court in Singapore.
Deals with appeals from the High Court.
Final arbiter for most cases in Singapore.
What is the meaning of arbitration?
Arbitration
Meaning: A private dispute resolution process where both parties agree to let a neutral third party (the arbitrator) decide the case.
Key Features:
Decisions (awards) are legally binding.
Faster and more confidential than court trials.
Often used in commercial disputes, especially international ones.
What is the meaning of mediation?
Mediation
Meaning: A voluntary and informal process where a neutral mediator helps both parties reach a mutually acceptable resolution.
Key Features:
Non-binding unless parties sign an agreement.
Focuses on collaboration and compromise.
Cheaper and less adversarial than arbitration or litigation.
What is the difference between common law and civil law?
What are the four concepts of game theory?
- Be nice
- Be forgiving
- Don’t be a push-over
- Be clear
What is the meaning of retainer?
A fee paid upfront to secure a service provider’s commitment, often used in legal or consulting contexts. It ensures the provider is available to work when needed.
What is Q1?
It refers to the first quarter of the fiscal year (January-March in most cases).
What is the meaning of termination period?
The time during which a contract can be terminated by either party, often with notice requirements.
What is the meaning of KYC?
KYC (Know your customer) A compliance process used by companies, especially financial institutions, to verify the identity of clients to prevent fraud, money laundering, or illegal activity.
What is the meaning of exclusivity clause?
A contract term requiring one party not to engage with competitors or third parties in specific activities during a specified period.
What is the meaning of exclusivity for next fund?
Often used in venture capital agreements, it means that investors (LPs) in the current fund are given priority or exclusive rights to invest in the next fund the VC raises.
What is the meaning for CMSL?
CMSL (Capital Markets Services License)
A license issued by regulatory authorities (like MAS in Singapore) that allows companies to provide financial and investment services.
What is the meaning of MAS?
Monetary authority of Singapore
Singapore’s central bank and financial regulator responsible for overseeing monetary policy, banking, and financial systems.
What is the meaning of whole carry of the strategies?
Refers to the total carried interest a VC fund or investment firm earns across its strategies (investments). carried interest is typically 20% of profits earned beyond the original capital invested.
What is the meaning of commodity scam?
fraud involving the manipulation or misrepresentation of commodity prices, contracts or trading processes.
What is the meaning of commodity contract?
A legal agreement to buy or sell a commodity at a set price on a future date, often traded in markets like the Chicago Mercantile Exchange.
What is the meaning of Ponzi Scheme?
A fraudulent investment scheme where returns to earlier investors are paid using funds from new investors, rather than from profit earned.
What is the meaning of Catalist?
A secondary board on the Singapore Exchange (SGX) for fast-growing companies. It allows smaller businesses to list without a profitability track record.
What is the meaning of breach of warranty?
A breach of warranty refers to the failure to uphold or honor the promises made in a warranty. A warranty is a guarantee that a product or service will meet certain standards or conditions. If these standards or conditions are not met, it constitutes a breach of warranty.
Here’s a breakdown of the term:
- Warranty
A warranty is a formal promise or guarantee made by a seller or manufacturer regarding the condition, quality, or performance of a product or service.
There are two main types of warranties:
Express Warranty: A specific promise made by the seller, often written or verbal (e.g., “This phone will last for 2 years without malfunctioning”).
Implied Warranty: An unwritten and automatic guarantee that the product will meet certain standards, such as being fit for its intended use or being of average quality. - Breach of Warranty
A breach occurs when the product or service fails to meet the standards outlined in the warranty.
Example 1: If a car comes with a warranty that it will be free from defects for five years, but the car breaks down due to a defect within the warranty period, this is a breach of warranty.
Example 2: If you purchase a phone with an express warranty that it will function for a year, but it stops working after six months due to a manufacturing defect, the warranty has been breached.
Legal Consequences
When a breach of warranty occurs, the buyer typically has legal recourse, which may include:
Repair or Replacement: The seller or manufacturer might be required to repair or replace the defective item.
Refund: In some cases, the buyer might be entitled to a refund if the breach is significant enough.
Damages: The buyer may also claim damages for any losses caused by the breach.
Case Study Example:
Scenario: You buy a washing machine that comes with a warranty that it will work for five years. After two years, the washing machine breaks down due to a defective motor, which was covered under the warranty.
Breach of Warranty: In this case, the washing machine manufacturer has breached the warranty, as the product didn’t perform as promised. You could request a repair, a replacement, or a refund depending on the terms of the warranty.
How It Applies to Your Life
If you’re purchasing products or services, it’s helpful to understand the warranties offered.
In the case of business agreements, especially in industries like manufacturing or real estate, you should include clear warranties in contracts to protect yourself or your business from future liabilities or breaches.
Define implied Warranty
A legal guarantee that a product or service meets certain basic standards, even if not explicitly stated in the contract.
