bad debt
An uncollectible debt, worthless to the creditor (e.g., a loan made with the intention it would be repaid but which appears unlikely to ever be repaid). A bad debt is deductible for tax purposes.
bad faith
Dishonesty in dealing with another person. Term implies a willfulness on the part of one person to trick or mislead another, and is not the same as negligence or mistake. It may or may not constitute fraud.
badges of fraud
A general term used to indicate suspicious circumstances surrounding a transaction, especially suspicion of defraud of creditors. A particular “badge” does not prove fraud but only implies it (e.g., if a transaction takes place to avoid a creditor and in anticipation of a suit, the conveyance is called a badge of fraud).
bad title
A defective title, insufficient to legally convey property, not marketable.
bail
1. (v.) To give a security (often money) to procure the release of a person being held for an offense, and to insure that person’s future appearance in court. 2. (n.) The person in the position of a surety (see surety) who gives such a security.
bail bond
A written instrument of debt made by a person in custody and by others for him (see surety) which procures his release. Surety promises to pay amount mentioned on bail bond should defendant fail to appear in court at a designated time.
bailee
1. Person to whom property of a bailment (see bailment) is delivered. 2. Person who temporarily possesses personal property in trust for another.
bailiff
1. A sheriff’s deputy or court officer who keeps order in a courtroom. 2. Person given authority for the care of another; a guardian. 3. A keeper of the property of another who is responsible to manage it for the best benefit of the owner.
bailment
1. The delivery of personal property to another under express or implied contract, for some specified purpose, to be returned or accounted for after purpose is fulfilled. “Bailment for hire” is the relationship created upon delivery of goods to someone (bailee) for some purpose in exchange for compensation (e.g., when a broken television set is delivered to a TV repair shop). 2. The lawful possession of property belonging to another, with the duty to account for it (e.g., a finder of a mislaid camera).
bailor
Person who gives personal property to another to be held in bailment. See bailment.
bait and switch
A deceptive advertising practice in which a retailer entices customers into the store with attractive advertising, and then fails to stock sufficient quantities of the advertised product or disparages the product. Both tactics are done with the intention of selling a higher priced product.
balance sheet
A summary of financial data showing assets, liabilities, and owner equity of all the accounts of a company at a certain time.
balancing test
A constitutional test wherein the court weighs the right of individuals to certain constitutionally guaranteed rights with a state’s right to protect its citizens from invasion of their rights. Used in cases involving equal protection and freedom of speech.
bank
1. A commercial institution that receives deposits of money, cashes checks, makes loans, and handles other money-related matters. Banks are chartered under federal and/or state laws, and are usually incorporated. 362. The raised ground at the edge of a watercourse.
bankrupt
1. The state of being unable to pay one’s debts when due and payment is demanded. 2. A person, partnership, or corporation so unable to pay its creditors. See bankruptcy, insolvency.
bankruptcy
A legal procedure, by which a debtor is relieved of his debts. Under the Federal Bankruptcy Act, a debtor’s assets may be liquidated to pay his creditors, or, under a provision of the Act, debtor’s assets are not liquidated, and debtor is allowed to reorganize, continue business, and pay creditor from future earnings.
bar
1. A prohibition or barrier to the relitigation of a case which has already been adjudicated (i.e., a court decision sometimes “bars” further action on the same case). 2. A position in a courtroom; a defendant “at bar” stands before the judge. 3. “The bar” is the entire body of lawyers. 4. A case “at bar” is the particular case before the court.
bar association
An organization of lawyers whose primary purpose is the betterment of the legal profession. Bar associations are formed on national, state, county, and municipal levels.
bargain
1. (n.) A mutual agreement between parties; a contract. 2. (v.) To negotiate the terms of an agreement.
barratry, barretry
1. Offense of provoking or exciting quarrels and suits, sometimes done by lawyers for the profit that can be gained from an ensuing lawsuit. 2. In maritime law, act by a master or mariner of a ship, done for a fraudulent or unlawful purpose which results in injury to the ship’s owner.
barrister
In England, a legal counselor; a person who argues a case at bar; similar to a trial lawyer in America, except a barrister does not prepare a case from the beginning but gets the case material from another type of legal professional—a solicitor.
barter
The exchange of one good or service for another that does not involve money.
basis
1. The foundation of something. 2. The value of a property on a certain date. The basis of a property is used as a baseline in determining appreciation (gain) or depreciation (loss) of value over time, and is used for taxing purposes.
bastard
An illegitimate child; a child not born during a lawful marriage. The term “child out of wedlock” is more commonly used now.
bastardy proceedings (action)
Legal action in which the father of an illegitimate child is determined and support obligations are enforced. Now, more commonly referred to as a “parentage action” or “paternity suit.”
battered woman syndrome
A psychological or medical condition of a person who has suffered abuse from a spouse or partner; sometimes advanced as a defense to a prosecution for assaulting or killing the abusive spouse or partner.
battery
The unlawful, undesired, and unprovoked use of force on another person with the intention to harm or create fear of harm in that person; harmful touching. In tort law, all parts of a person’s body and anything closely attached to it (such as clothes or a car being driven) are protected. Assault is the threat to use force; its actual use in an offensive way, even though slight, is battery.
bawd
An operator of a house of prostitution; a madam.
bearer
Person who possesses a negotiable instrument, title, or security marked “payable to bearer,” “cash,” or is indorsed in blank (i.e., the payee is unnamed). The instrument itself is called a bearer bond or bearer paper and is payable upon presentment.
bench
1. A court while sitting in its official capacity. 2. All judges 38together. 3. The place in a courtroom where the judge sits.
bench trial
Trial held before a judge, without a jury, during which the judge acts as the factfinder.
bench warrant
A judge’s written order to authorities to arrest a person, often issued to bring a person before the court to answer a contempt charge or to appear as a witness.
beneficial interest
1. An interest, or right to profits, in a property. 2. That interest in property which one holds entirely for her own benefit. 3. The remainder of an estate after obligations have been met.
beneficiary
1. Person or organization entitled to benefits in a will, insurance policy, or trust. 2. One who benefits from acts of other persons.
benefit of clergy
1. In Old England, the exemption the clergy possessed from the jurisdiction of the secular courts. It then came to mean the exemption of any church officers from capital punishment, though it did not apply to certain crimes such as high treason. Abuse led to its abolition in 1827. 2. “Without benefit of clergy” means cohabitation without being married.
bequeath
To give a gift of personal property in a will, distinguished from “devise,” which is to give a gift of real property, although terms are often used synonymously.
bequest
A gift of personal property given in a will; a legacy; distinguished from a “devise,” which is a gift of real property.
Berne Convention
International agreement first proposed in 1886 on the protection of copyrighted material that sets out the minimum standards for national copyright laws. The United States became a member of the Convention in 1989.
best evidence
The best proof or evidence available under the circumstances; primary evidence; the original (e.g., the actual written document, not a copy).
bestiality
Sexual intercourse between a human and an animal; constitutes a crime against nature.
best interests of the child
Principle that courts determine questions relating to a child’s custody or other living arrangements according to what will provide the greatest benefit to the child.
beyond a reasonable doubt
Phrase used to refer to the level of certainty required in the mind of an honest, conscientious juror before convicting a person of a crime; it is not absolute certainty, containing not the least bit of doubt (for this is impossible), but that degree of certainty a moral person seeking the truth is required to have. It is the highest degree of proof required in a trial.
bias
1. Preconceived opinion; a leaning toward one party or side of an issue; a predisposition. 2. A judge’s state of mind toward a litigant that tends to sway her judgment and which may be cause for disqualification.
bicameral system
A legislature divided into two houses, as is the Senate and House of Representatives.
bid
An offer to buy or sell a product or service at a stated price (e.g., building contractors submit bids for work on construction projects, and public agencies accept bids before awarding contracts).
bid shopping
A practice whereby general contractors use low sub-bids from other subcontractors to compel potential subcontractors to submit even lower bids.
bifurcated trial
Separate trial of separate issues (e.g., criminal trials involving guilt and punishment; civil trials involving liability and damages).
bigamy
Criminal offense committed by marrying a person when one knows his previous marriage is still in existence.
bilateral contract
An exchange of mutual promises in which each party is both a promisor and promisee; each is 40bound to perform some duty for the other (e.g., a contract for the sale of a car is bilateral because one party promises to pay for the car while the other promises to give it). Differs from a unilateral contract in which there is a promise on one side only, usually a promise to pay for a service rendered.
bill
1. In legislation, a draft of a proposed law that is introduced to the legislature for enactment. 2. A written account of indebtedness stating items sold, services rendered, or work performed. 3. The first pleading by a plaintiff in equity action; a complaint.
bill of attainder
Any form of legislative action that singles out an individual or group of persons for punishment without trial. Such an act is unconstitutional.
bill of exceptions
A formal written statement of the objections a party has with the rulings, decisions, or instructions given by a trial judge that is submitted for the information of an appellate court. A bill of exceptions is no longer necessary to preserve an objection in federal courts or in most state courts.
bill of exchange
A written order made on a second party to pay a third party a certain sum of money; a check, a draft.
bill of indictment
The document containing the accusation(s) against a person before it is given to a grand jury. See indictment.
bill of lading
A receipt for the goods issued by a person contracted to transport and deliver them to a specified person or place. It names the person from whom goods are received, states the place of delivery, describes the goods, and states the terms of the contract to transport them.
bill of particulars
An amplification of a pleading or a more detailed statement of the offense charged against a defendant to inform him of the specific nature and extent of a plaintiff’s claim. It allows defendant to properly prepare his 41defense, but does not mention the specific evidence plaintiff will use against him.
bill of review
Proceeding in equity that seeks the reversal or revision of a decree already rendered. It is usually applicable only to correct errors of law on the face of the record, when new evidence is discovered, when new matter arises, or where there is evidence of fraud impeaching the original transaction.
Bill of Rights
The first ten amendments to the U.S. Constitution that guarantee fundamental rights and liberties of the individual, many of which limit the power of legislature.
bill of sale
A written agreement that transfers title of personal property to another; not the same as a receipt for payment.
bind
To legally obligate, especially by a contract, bond, or decree; to hold responsible for duties or obligations.
binder
1. A temporary insurance policy issued before determination of risk and the issuing of a final policy. 2. A receipt for a deposit on the purchase of a home that binds buyer and seller to agreed-upon terms.
binding
Legally obligatory; compulsory adherence to a contract, bond, decree, or duty.
bindover
1. The act by which a court requires a person to post bond and appear in court, or enter into a recognizance. 2. To transfer a case to a higher court or grand jury after finding probable cause of guilt.
Bivens action
An action brought against a federal agent or official for violations of the plaintiff’s constitutional rights. See Bivens v. Six Unknown Named Agents, 403 U.S. 388 (1971).
blacklist
1. (n.) A list of persons to be avoided (e.g., employees who have been fired for unacceptable 42performance or behavior, or troublesome union members). 2. (v.) To put someone on such a list.
blackmail
Extortion of money by threat to do bodily harm, expose a wrong-doing, or disgrace the character of another.
Blaine Amendment
A provision in a state constitution that provides for a higher level of separation of religion and the state than is provided by the First Amendment.
blank indorsement
The signing of a promissory note or bill of exchange without naming person to whom payment is to be made. It is payable to the person who possesses it (see bearer) and is negotiable upon delivery.
blasphemy
1. Act of maliciously reviling or reproaching God or religion; speaking of God so as to harm or destroy reverence toward Him. 2. At common law, a misdemeanor that is seldom enforced.
blue chip stock
Highest quality stock, issued by companies with enduring financial success, and promise of further success.
blue sky laws
State laws that regulate sale of stock and other securities to protect investors from fraudulent offerings.
board
1. An organized body of persons that acts in the interest of others by performing managerial, representative, and administrative duties for a corporation or government (e.g., board of directors, board of health, board of aldermen). 2. Regular meals, though term sometimes includes lodgings.
Board for International Broadcasting
Created in 1973, and disbanded in 1994, this agency was responsible for overseeing broadcasting by stations serving Eastern Europe.
bona fide
(bon-na FAYD) Lat. In good faith; honest; without deceit. A 43bona fide possessor is one who holds property with the honest belief that he is the proper proprietor.
bona fide occupational qualification (B.F.O.Q.)
A provision that allows employers to discriminate against potential employees on the basis of sex, religion, or national origin, provided employers can show that those qualifications relate to an essential duty of the job and are reasonably necessary for normal operation of the employer. Such a qualification is, thus, a B.F.O.Q.
bona fide purchaser (BFP)
In a purchase transaction, one who pays valuable consideration, has no notice of outstanding rights of others, and acts in good faith.
bond
1. An instrument of indebtedness issued by companies and government bodies that pays holder an interest for a specified amount of time. Some bonds have detachable coupons redeemable by the bearer for the interest payments. 2. A contract between a surety and the government that states surety will have defendant appear in court at a specified time, or forfeit bond money; bail bond. 3. A binding agreement, backed by securities, to do or not do something (e.g., a “performance bond” guards against loss due to failure on a construction project). 4. A deed that obligates a person or his heirs to pay a sum of money by a specified date.
bonded warehouse
A government-designated building where goods are kept. Owner or lessee of building posts bond to protect government from loss connected with stored goods.
bondsman
A surety. One who posts bond for the release of a person in custody is called a bail bondsman.
bonus
Extra pay given gratuitously to an employee often in appreciation or as an incentive; any extra payment above regular remuneration. Bonuses are given, for instance, for extraordinary performance on a job, for prepayment 44 of mortgage debt, and to professional athletes.
bookmaking
The taking and recording of wagers, most often on sporting events such as horse races, boxing matches, and football games. It is a form of gambling and is usually illegal except where permitted by law for specified events.
book value
The net worth of something, such as a company, as recorded in its account books; value of something after deducting liabilities from assets.
bootlegging
The illegal possession, use, transportation, or sale of intoxicating liquor, often done to avoid taxes.
booty
Personal property taken by a land army.
borrowing statutes
Laws of one state used by another state in deciding conflict of laws questions (e.g., statute of limitations of state where claim accrued as opposed to limitations statute of forum state).
bottomry
A contract in which a shipowner borrows money to repair or equip his vessel, while offering the ship and its cargo as security for the loan. Usually made by the master of the ship while in a foreign port in times of emergency.
brownfield
Real property that is vacant but that is difficult to develop due to environmental contamination.
bureaucracy
1. An organization with a hierarchy of authority, specialized functions, and fixed positions, rules and procedures. 2. A governmental body of non-elected officials that makes and/or administers policy.
burglary
Entering a building or room with intent to commit a felony, usually theft. Common law required a burglary to be a breaking and entering a house at night, but modern statutes have broadened the definition.
business cycle
The sequential growth and shrinkage of economic activity.
business judgment rule
States that business managers are immune from liability when making careful, honest decisions under corporate authority.
business method patent
A patent that protects the invention of a process or series of steps that makes up a unique method of doing business.
business record exemption
Exemption to the hearsay exclusion rule that permits routine records, such as police reports, to be admitted in court as evidence.
business trust
An unincorporated form of business organization in which property is conveyed to a trustee (e.g., a bank), according to specified terms, to be held and managed for the benefit of a beneficiary.
buyer
A purchaser, especially of movable property (chattels).
buy-sell agreement
1. An agreement between co-owners of a business to purchase the interest of a co-owner who withdraws from the business. 2. A restriction on the transfer of shares of a corporation that requires a shareholder to sell, or offer to sell, her stock to the corporation or to other shareholders when a stated event happens
bylaws
Rules and regulations of corporations, associations, and other organizations. Sometimes term is used synonymously with “ordinance” to mean the laws or statutes of a locality.