The Law Dictionary for Everyone
The idea of an arm’s length transaction relates to an agreement between two people or entities that are independent of one another. This means that they do not have a prior relationship with one another, such as being related to each other, having a prior deal with each other, or that one party controls the other in some way. In […]
Read moreA memorandum of understanding (MOU) is an agreement between two parties that is not legally binding, but which outlines the responsibilities of each of the parties to the agreement. An MOU is often the first step toward creating a legally binding contract. In the U.S., an MOU can be considered identical to a letter of intent, which is another kind […]
Read moreA notarized letter is a letter that has been certified by a notary public. A notary public is someone who is authorized to certify certain legal documents, such as deeds or contracts. A notarized letter is certified when a notary public adds his stamp or seal to the document, ensuring that the signature on the letter is authentic. To explore […]
Read moreDuress is a compulsion, coercion, or pressure to do something. In a legal sense, this refers to forcing someone to do something, or to sign a contract, by threatening his personal safety, his reputation, or other personal issue. When someone agrees to do something only because he is being threatened – or under duress – the law is likely to […]
Read moreA sublease is a rental agreement between someone who has leased a house or apartment, and another person who wishes take over. Typically, a sublease is created when a tenant finds that he cannot continue meeting the terms of the lease as agreed. In this scenario, the tenant may lease the dwelling out, while remaining liable to the property owner, […]
Read moreThe term concession is used in a variety of situations, often referring to an agreement to do something, usually grudgingly, or as part of a compromise, or in order to improve a situation. Concessions are often made during contract negotiations, may be made as a grant by the government, and even have a place in politics. In the private sector, […]
Read moreSubordination is the placing of a thing, such as a claim, in a position lower to another. Commonly used in the financial world, subordination refers to placing a loan at a lower priority than another loan to the same person or entity. This legal definition is not to be confused with the grammatical “subordinate clause,” which refers to the process […]
Read moreThe term Statute of Frauds refers to a law that requires certain types of contracts be made in writing, and signed by the parties to the agreement. Such statutes, which vary by state, serve to protect the parties from fraudulent acts in respect to the contract. The contract need not be written in formal language, and it is not even […]
Read moreThe term quid pro quo is a Latin expression that refers to an exchange of things similar in value. In a quid pro quo exchange, one transfer of goods or services is contingent upon the other transfer. For instance, a shopper who exchanges $3.00 for a gallon of milk at the grocery store has received something for something. Quid pro […]
Read moreThis Latin term, caveat emptor, means “let the buyer beware,” and is commonly used in reference to purchasing real property, or used items that do not come with a warranty. This is a warning to buyers that they are responsible for making sure the property or item is in suitable condition, or that it fits their needs, before buying. To […]
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