Topic 16 - Key Legal Concepts Flashcards
What is a legal person?
A body that has a legal existence and can sue, be sued and enter contracts.
Individuals
Trustees
LTDs
Limited liability partnership
Means partners have a personal liability should the business collapse.
Liability is what they have invested and guarantees they have given.
Requirements of a binding contracts
Offer and acceptance - there must be an offer made and acceptance by other party.
Consideration - subject of the contract must be matched by consideration e.g. promise to pay
Capacity to contract - each of the parties must have legal capacity to enter into contract
Contract terms - terms have to be clear and free from doubt
Intentions to create a legal partnership - change from an informal arrangement.
Legality of object - contracts annoy be made for illegal or immoral purposes.
Misrepresentation, duress or undue influence - if any of these factors are involved in leading someone to enter a contract then it is not binding.
Whats involved in contracts involving land
Must be made in writing and conveyances. Transfer of ownership via deed
Remedies for breach of contracts
Damages - injured party seeks compensation
Order for specific performance - such an order compels other party to complete the contract.
Injunction - court order preventing someone from doing something
What is the law of agency
Agenct and principle
Agent acts on behalf of principle e.g. IFA for a client
Ratification?
The principle agreeing to what the agent has done after the event.
Apparent authority
Something said or done by the principle that shows they have authorised the agents actions
Realty
Property deemed to be real and immovable e.g land or what is attached.
Personality
All other property is called personality
Joint tenants
Each joint owner owns 100% if 1 dies the ownership transfers
Tenants in common
The joint owners are regarded as 1 and are trustees of the land. Each owner has their share of equity in property
What is power of attorney
An attorney is a person given legal responsibility to act on behalf of another person
E.g. a minor who can’t legally enter a contract
Someone with affairs in UK who is moving abroad.
Person not in good health: dementia
What is an enduring power of attorney
Assigned when a donor becomes mentally incapacitated. It has to be registered with office of the public guardian
Donor and Donee
Donor - person who makes a power of attorney
Donee - person who is given power of attorney
What is lasting power of attorney
Replaced (EPA) in 2007. 2 types of LPA:
Health and welfare - gives the attorney power to make decisions over medical care or moving to a care home if the donor cannot make decisions.
Property and financial affairs - gives the attorney power to mage bank accounts, sell property even if donor has mental capacity but they need permission.
What happens if there isn’t a power of attorney
The medical capacity act 2005 supports and protects individuals by assigning a court appointed deputy.
Will
A will Is a written declaration of an individuals wishes regarding what will happen after they die
Testator
Person who makes the will
Beneficiary
A person or organisation that revives benefits from the will
Codicil
Document that formally amends the will
Executor
Person names by the testator as carrying out the wishes in the will
Grant of probate
Legal authority for executor to distribute the estate according to the will
Deed of variation
Legal agreement by the beneficiaries to alter the terms of the will after death of testator
Moneys worth
Provisions of goods/services instead of cash payment
Intestate
Having died without leaving a will
Administrator
person given the role of distributing the estate according to the rules of Intestate
Letters of administration
Legal authority to distribute the estate of a deceased person without leaving a will
Trust and trustees
A trust (settlement) is a method when an owner of an asset (settlor) can distribute or use that asset for the benefit of another person (beneficiary) without allowing them to have control
Settlor
The person who creates the trust and was original owner of asset
Trust deed
Document stating how the trust will be managed, by who and for who’s benefit
Insolvency
Where liabilities exceed assets or organisation/individual cannot meet liabilities within set time
Bankruptcy
Legal process triggered by insolvent individual by creditors for owing at least £5000. Bankruptcy order usually lasts 12 months
Individual voluntary arrangement (IVA)
Agreement by creditor to reschedule an individuals debt repayments
Company voluntary arrangement
Same situation as an IVA but with the aim of managing company liabilities without business going into administration
Official receiver
Official appointed by court to identify and distribute the assets of bankrupt individual/organisation and investigate reasons why
Insolvency practitioner
Appointed by court or by official receiver to identify and distribute assets. Must be licensed to practise
