Topic 16 (Key legal concepts) Flashcards
(52 cards)
What is a legal person?
Those who can enter into contracts, or be sued in a court of law, these include executors, trustees and limited companies
What are companies?
Legal entities
Who can’t be held responsible for the debts of a company?
Shareholders
What is a partnership?
An arrangement between 2 people who are carrying a business together for a profit. It is not a separate legal entity and partners jointly own assets and liabilities
What is a limited liability partnership?
Means that if the business collapsed their liability is limited to the amount they have invested plus any personal guarantees
What happens to the loss made by a partnership?
The loss is usually allocated amongst the partners in the same ratio as profits are shared
What are the basic requirements for a binding contract?
- contracts can be made orally, in writing or by deed
- offer and acceptance
- consideration
- capacity to contract
- contract terms
- intention to create a legal relationship
For there to be a contract there must be…..?
> An offer - client completes application form and sends to the provider and they offer acceptance terms
On Acceptance - the client pay premiums to the friends life
What is meant by ‘utmost good faith’?
Means that the insurer requires all the material facts, such as health and medical history are disclosed when application is made
What is a breach of contract?
Where a party fails to meet their side of the contract and has no legal excuse for doing so
What courses of action are available for a breach of contract?
- Damages - financial compensation for loss
- Order for specific performance - obtained to compel the other party to complete the contract
- An injunction - a court preventing someone from doing something
What is an AGENT?
Acts on behalf of the principal, within specific boundaries to conclude contracts
What is APPARENT AUTHORITY?
Something either done or said by the principal that leads to the impression that they have authorised the agents actions
What is a PRINCIPAL?
The party granting permission to the agent to act on their behalf
What is RATIFICATION?
The retrospective agreement by the principal to actions taken by the agent that exceed the latter’s authority
What is an IFA?
An agent of their client and has powers under the terms of engagement
What are the 2 distinct types of property ownership?
- Reality
- Property deemed to be real if a court will restore it to a dispossessed owner and not merely provide compensation for loss
- Tends to be immovable property such as land - Personality
- All other property
What is Joint Tenancy?
> Each owner is deemed to own the whole of the property
If one dies, the property automatically reverts to the survivor
Transfer upon death to the survivor is automatic and can’t be overridden
What is Tenants in Common?
Where each owner has an identifiable share of the property. If one dies their share passes to whoever is entitled to inherit it under the terms of the will
What is a power of Attorney?
Someone who acts legally on behalf of someone
What is the difference between an ordinary power of attorney and an enduring power of attorney?
An ordinary one will cease if the donor becomes mentally incapacitated but an enduring one will continue
What happens when a donor becomes mentally incapable?
The enduring power of attorney has to be registered with the office of the public guardian and can only be revoked with the consent of the court of protection
What is a lasting power of attorney (LPA)?
enables attorneys to make decisions about personal and health matters, not just financial decisions
What are the 2 types of LPA?
- Health and Welfare
2. Property and Financial Affairs
