Topic 1: Key Terms and Concepts

Question 1

Common Law

Answer 1

Has at least four possible meanings – the law common to the whole of England; unenacted law (the decisions fo judges); both case law from the common law courts and statute law as distinct form equity that have developed over time; or the law which originally developed in England and was inherited by the British colonies. Common law describes a competitive or adversarial type of system.

Question 2

Precedent

Answer 2

A case (containing a principle of law) decided in a court which will be applied in other courts.

Question 3

Equity

Answer 3

The body of rules concerned with fairness and justice, originally formulated and administered but the Courts of Chancery to supplement the common law but which are now fused and applied together with the common law.

Question 4

Separation of Powers

Answer 4

The powers of government – executive, legislative and judicial – are operated separately to ensure checks and balances, for example, law-makers cannot judge the law.

Question 5

Partnership

Answer 5

The relationship which subsists between persons carrying on a business with a view of profit.

Question 6

Company

Answer 6

A distinct legal entity separate from its shareholders.

Question 7

Sole Trader

Answer 7

Where a single (natural) person personally owns and operate a business with unlimited liability.