Legal/Business Vocabulary

Question 1

Arbitration

Answer 1

A method of resolving disputes outside the courts, where an impartial third party makes a decision.

Question 2

Breach of Contract

Answer 2

A violation of any of the agreed-upon terms of a contract.

Question 3

Due Diligence

Answer 3

The process of investigating and evaluating a business or investment before making a decision.

Question 4

Indemnity

Answer 4

A legal exemption from the penalties or liabilities incurred by a person or organization.

Question 5

Jurisdiction

Answer 5

The official power or authority to make legal decisions and judgments.

Question 6

Liability

Answer 6

The state of being legally responsible for something, especially in a financial sense.

Question 7

Mediation

Answer 7

A method of resolving disputes in which an impartial third party helps the disputing parties reach a mutually acceptable agreement.

Question 8

Negligence

Answer 8

Failure to take proper care in doing something, which leads to harm or damage.

Question 9

Non-disclosure Agreement (NDA)

Answer 9

A legal contract that prohibits one or more parties from disclosing confidential information.

Question 10

Settlement

Answer 10

An agreement reached between parties to resolve a dispute, often without going to trial.