Topic 16 - Key Legal Concepts Flashcards

1
Q

What is a legal person?

A

A body that has a legal existence and can sue, be sued and enter contracts.

Individuals
Trustees
LTDs

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2
Q

Limited liability partnership

A

Means partners have a personal liability should the business collapse.

Liability is what they have invested and guarantees they have given.

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3
Q

Requirements of a binding contracts

A

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.

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4
Q

Whats involved in contracts involving land

A

Must be made in writing and conveyances. Transfer of ownership via deed

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5
Q

Remedies for breach of contracts

A

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

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6
Q

What is the law of agency

A
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7
Q

Agenct and principle

A

Agent acts on behalf of principle e.g. IFA for a client

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8
Q

Ratification?

A

The principle agreeing to what the agent has done after the event.

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9
Q

Apparent authority

A

Something said or done by the principle that shows they have authorised the agents actions

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10
Q

Realty

A

Property deemed to be real and immovable e.g land or what is attached.

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11
Q

Personality

A

All other property is called personality

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12
Q

Joint tenants

A

Each joint owner owns 100% if 1 dies the ownership transfers

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13
Q

Tenants in common

A

The joint owners are regarded as 1 and are trustees of the land. Each owner has their share of equity in property

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14
Q

What is power of attorney

A

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

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15
Q

What is an enduring power of attorney

A

Assigned when a donor becomes mentally incapacitated. It has to be registered with office of the public guardian

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16
Q

Donor and Donee

A

Donor - person who makes a power of attorney

Donee - person who is given power of attorney

17
Q

What is lasting power of attorney

A

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.

18
Q

What happens if there isn’t a power of attorney

A

The medical capacity act 2005 supports and protects individuals by assigning a court appointed deputy.

19
Q

Will

A

A will Is a written declaration of an individuals wishes regarding what will happen after they die

20
Q

Testator

A

Person who makes the will

21
Q

Beneficiary

A

A person or organisation that revives benefits from the will

22
Q

Codicil

A

Document that formally amends the will

23
Q

Executor

A

Person names by the testator as carrying out the wishes in the will

24
Q

Grant of probate

A

Legal authority for executor to distribute the estate according to the will

25
Deed of variation
Legal agreement by the beneficiaries to alter the terms of the will after death of testator
26
Moneys worth
Provisions of goods/services instead of cash payment
27
Intestate
Having died without leaving a will
28
Administrator
person given the role of distributing the estate according to the rules of Intestate
29
Letters of administration
Legal authority to distribute the estate of a deceased person without leaving a will
30
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
31
Settlor
The person who creates the trust and was original owner of asset
32
Trust deed
Document stating how the trust will be managed, by who and for who’s benefit
33
Insolvency
Where liabilities exceed assets or organisation/individual cannot meet liabilities within set time
34
Bankruptcy
Legal process triggered by insolvent individual by creditors for owing at least £5000. Bankruptcy order usually lasts 12 months
35
Individual voluntary arrangement (IVA)
Agreement by creditor to reschedule an individuals debt repayments
36
Company voluntary arrangement
Same situation as an IVA but with the aim of managing company liabilities without business going into administration
37
Official receiver
Official appointed by court to identify and distribute the assets of bankrupt individual/organisation and investigate reasons why
38
Insolvency practitioner
Appointed by court or by official receiver to identify and distribute assets. Must be licensed to practise