16. Key legal concepts

Question 1

Legal Person

Answer 1

a person who can enter into legal contracts

Question 2

x7 Binding contract

Answer 2

1. offer and acceptance
2. considerations
3. Capacity to contract
4. Certain terms and free from doubt
5. Intention to create a legal partnership
6. Legality of object
7. Entered into freely

Question 3

Caveat Emptor

Answer 3

Buyer BewArE

Question 4

Uberrima fides

Answer 4

Utmost good faith

Question 5

3x things if there is a Breach of contract

Answer 5

1. Damages
2. Order of specific performance
3. Injunction

Question 6

Agent

Answer 6

Acts on behalf of the principal within specific boundaries to conclude contracts

Question 7

Apparent Authority

Answer 7

Something either done or said by the principal that leads to the impression that they have authorised the agents actions

Question 8

Principal

Answer 8

The party granting permission to the agent to act on their behalf

Question 9

ratification

Answer 9

actions taken by the agent without authority

then later giving permission

Question 10

realty

Answer 10

property deemed to be real (real estate )

Question 11

Personalty

Answer 11

All other property

Question 12

Joint tenants

Answer 12

100% owned by each

Question 13

Tenants in common

Answer 13

regarded as a single owner

Question 14

Power of attorney

Answer 14

Legal responsibility to act on behalf of another person

Question 15

Enduring Power of attorney

Answer 15

Client starting to lose mental capacity

Question 16

Donor

Answer 16

Person who makes a power of attorney

Question 17

Donee

Answer 17

Person who is given power of attorney

referred as an attorney

Question 18

Lasting power of attorney

Answer 18

Clients loss of mental capacity:

• Health and welfare
• Property and financial affairs

Question 19

Formal Wills

Answer 19

1. Must be in writing

2. Must be executed

Question 20

Testator

Answer 20

Person who makes the will

Question 21

Beneficiary

Answer 21

A person who benefits from the will

Question 22

Codicil

Answer 22

Document that formally amends a will

Question 23

Executor

Answer 23

Person named by testator as being responsible for carrying out the wills wishes

Question 24

Grant of probate

Answer 24

Legal authority of executors to distribute estate

Question 25

Deed of variation

Answer 25

legal agreement of beneficiaries to alter the terms of a will

Question 26

Intestacy

Answer 26

No will left behind

Question 27

Administrator

Answer 27

Person given role of distributing estate (intestacy )

Question 28

Letters of administration

Answer 28

Legal authority to distribute the estate of a person | Intestacy

Question 29

Settlor

Answer 29

The person who creates thee trust and originally owned the assets held

Question 30

Trust Deed

Answer 30

Document that sets out how the trust is to be managed | By who and for whom

Question 31

Trustee

Answer 31

Legal owner of property | with responsibility to take care and distribute trusts

Question 32

Insolvency

Answer 32

Liabilities exceeds assets | Can not meet their financial obligation with reasonable time

Question 33

Bankruptcy

Answer 33

£5,000+ in debt | Last 12 months

Question 34

Individual Voluntary arrangement

Answer 34

Agreement by creditors who represent at least 75% of the value of the debt to reschedule payments

Question 35

Company Voluntary Arrangement

Answer 35

Agreement by creditors who represent 75% of the value of debt . Aim of avoiding the business going into administration

Question 36

Official Receiver

Answer 36

official appointed by the court to identify and distribute the assets of bankrupt individual

Question 37

Insolvency practitioner

Answer 37

Appointed by court or receiver to identify and manage the distribution