topic 16 - key legal concepts Flashcards
1
Q
What is a legal person?
A
- Body with legal existence: person, company, executor, trustee etc.
- Can enter into contracts or be sued
- Also include bodies such as limited companies
2
Q
Sole traders
A
- The owner is not considered a separate legal person from the business.
- They are personally liable for their business’s debts
3
Q
Memorandum and articles of association
A
the nature of the company and the rules about what it can and can’t do
4
Q
Key features of partnerships
A
- An arrangement between people who are carrying on a business together for profit
- It is not a separate legal entity unlike a company
- Partners have a joint responsibility for the liabilities of the partnership
- Meaning each partner is liable by themselves to pay back the entire amount owed to any creditor
- They should have a written agreement
5
Q
Limited liability partnerships (LLP)
A
- Where partners have limited personal liability if the business should collapse
- Their liability is limited to the amount that they have invested in the partnership, together with any personal guarantees they have given
- LLPs have to be registered with Companies House and are more like companies than they are standard partnerships
- Taxed in the same way as other partnerships: each partner is taxed on a self-employed basis – no corporation tax
6
Q
Misrepresentation – 2012 Act
A
- Honest misrepresentation – insurer has no right to refuse claim
- Careless misrepresentation – compensatory remedy
- Deliberate or reckless misrepresentation – can reject claim as if contract never existed
7
Q
What is the law of agency?
A
- An agent is a person who acts on behalf of another (who is called the principle)
- The agent can conclude contracts on behalf of the principle
- In the law, the acts of the agent are treated as those of the principle
- An agent should only act within the authority given to them and this should be strictly observed
8
Q
apparent authority
A
- When an agent acts outside of their actual authority
9
Q
Ratification
A
if the agent does exceed their authority, the principle can agree after the event to do what the agent has done
10
Q
Realty
A
- property is deemed to be real if a court will restore it to a dispossessed owner and not merely provide compensation for loss.
- Real property tends to be distinguished by being immovable. Eg land and what is attached to it.
- Also known as real estate
11
Q
Joint tenants
A
- Indivisible - each joint owner owns 100% of the property, there is no division
- on death of any joint owner, the surviving joint owner(s) will take over legal ownership
- the transfer is automatic and cannot be overridden
12
Q
tenants in common
A
- the joint legal owners are regard as one single owner but are trustees
. - each legal owner is also the beneficial owner of a defined interest (share) of the equity in the property, as agreed between them
- if one dies, their share is inherited under the terms of their will
13
Q
Power of attorney
A
- An attorney is a person who is given the legal responsibility to act on behalf of another person
- A person who does not have capacity to enter a contract cannot appoint someone as their attorney
14
Q
Enduring power of attorney
A
- Ordinary power of attorney automatically ceases if a person becomes mentally incapacitated
- An EPA can continue, although it has to be registered with the Office of the Public Guardian (OPG) if the attorney believes that the donor is losing mental capacity
- An EPA can be revoked only with consent of the Court of Protection
15
Q
Lasting power of attorney
A
- From October 2007, under the provisions of the Mental Capacity Act 2005, EPA were replaced by LPAs
has mental capacity, as long as there’s permission - The LPA must be registered with the OPG before it can come into effect
