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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A
Acceptance
There are 3 ways in which a buyer will be regarded as having 'accepted' goods:
• if he tells the seller he accepts
• if he retains goods beyond a reasonable time without telling the seller that he wishes to reject them
• if he does an act which suggests that the seller no longer owns the goods (e.g. if he gets someone other than the seller to repair faulty goods)
Acceptance prevents a buyer rejecting goods for breach of contract (e.g. if goods are faulty)
Administrator; Administratrix
Person officially appointed to administer the estate of someone who died without leaving a will
Affirmation
When the innocent party, aware of a matter which would justify him ending the contract (e.g. breach of contract or misrepresentation) does not end the contract.
Agency
An authorised agent may bind his Principal (the person who authorised him) to a contract with a third party. The agent generally drops out of the picture (e.g. an estate agent who negotiates a house sale brings the contracting parties together but incurs no personal liability on the deal).
A travel agent, however, may incur personal liability in relation to a package holiday.
Arbitration
Trade Association arbitration is cheaper, quicker and simpler than court proceedings.

• County Court arbitration. If a civil claim (see ‘civil law') does not exceed £1,000, it will automatically be referred to arbitration if and when a defence is filed. The hearing is private and informal with the judge asking all the questions. Parties do not require legal representation.

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C
Cancellable agreement
In the absence of express cancellation rights, a party may have a statutory right of cancellation (e.g. under the Consumer Credit Act or Timeshare legislation).
Civil law
Concerned with the relationship between individuals. A civil action is generally brought by the person who has been injured or otherwise suffered loss as the result of a wrong which only directly affected him (e.g. trespass to private land). Usually the claim will be for compensation.
Claimant
The name given to the person who brings a civil action.
Code of Practice
Most Trade Associations operate Codes of Practice which are tailor-made to deal with the common problems of the trade. The disadvantage is that there are no direct methods of enforcement.
Conciliation
Conciliation procedures require a dissatisfied customer to make a verbal complaint followed by a formal letter of complaint. It is a free, quick and easy form of redress.
Condition
An important term of a contract which, if breached, entitles the innocent party to terminate the contract as well as claim compensation.
Conditional contract
A contract may be made conditional on a particular event/circumstance (e.g. "Subject to contract" in relation to a house sale means there is no sale unless and until formal signed contracts are exchanged).
Conditional sale agreement
A type of credit agreement relating to the sale of goods. The price is payable by instalments and the buyer will not become owner of the goods until certain conditions are satisfied (e.g. payment of the last instalment).
Consideration
The ‘price' in a contract for the other party's promise. The ‘price' may be a promise or an act (e.g. promise of payment ). A party can only sue on a promise if he has given consideration (something) in return for the promise.
Consumer Credit Act (CCA) 1974
Its principal aim was to provide a uniform system of controlling all forms of lending. This control takes 2 forms - control of lenders through a licensing system and control of individual credit agreements.
Consumer credit agreements
General term for the different types of credit agreement (e.g. hire purchase) which are governed by the Consumer Credit Act 1974.
Contract
A legally binding agreement. There must be certainty, consideration (see ‘consideration) and a mutual intention that the agreement should have legal effect. Generally a contract does not have to be in any particular form, an oral agreement may be binding.
Conveyancing
The process by which ownership of land is transferred between a seller and a buyer.
County court
Civil actions (see ‘civil action') for personal injury not exceeding £50,000 must be started in this court. In any event civil actions worth less than £25,000 must be tried in a county court.
Credit card
A card which can be used to obtain cash, goods or services up to a stipulated credit limit. The supplier is later paid by the credit card company (e.g. Access) which in due course is reimbursed by the credit card holder who will be charged interest at the end of the credit period if money is still owing.
Credit sale
Similar to a conditional sale except the buyer of the goods immediately becomes the owner of them. “Buy now, pay later” situation.
Criminal law
Concerned with the relationship between the individual and the general public. Criminal actions (e.g. motoring offences) are usually brought by the state. The principal function of criminal proceedings is to punish the offender. Criminal cases are tried by a magistrates' court or a crown court.

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D
Damages
Compensation for breach of contract. The aim is to put the innocent party as far as possible in the financial position he would have been in but for the breach (e.g. with defective goods, damages would cover at least the cost of repair).
Defendant
The person against whom legal proceedings are brought.
Deposit
A sum of money paid in advance as a guarantee of performance by the payer. If the payer breaches the contract, he loses the deposit.
Description
Where there is a sale of goods by description, it is a term of the contract that the goods correspond with the description; otherwise the buyer may reject the goods. A sale is by description where the buyer cannot verify the description of the goods before sale (e.g. tinned goods).

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E
Employee
Someone who works under a contract of employment. Only employees are entitled to redundancy payments (see ‘redundancy' below) and to present a claim for unfair dismissal (see ‘unfair dismissal'). Independent contractors cannot bring these claims.
Enforcement notice
Issued by a local authority for breach of Town & Country Planning le.g.islation. Enforceable against current owner (even if the breach was committed by a previous owner).
Exclusion clause
A clause in which a contracting party seeks to exclude himself from liability (e.g. "Cars parked at owner's risk").
Executor; executrix
The name given to a person appointed by someone's will to administer their estate. Executor is the name given to a male and executrix to a female.

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F
Fitness for purpose
Where goods are sold by a trader, they must be reasonably fit for the buyer's own particular purpose, provided the buyer made his purpose known (expressly or implied) and reasonably relied on the seller's expertise. Where goods are bought for their usual purpose, notification of the buyer's purpose is implied.

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G
Grant of probate
See 'probate'.
Guarantee
See 'manufacturer's guarantee'

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H
High court
Court in which the most substantial civil actions (see ‘civil action') are brought.
Hire purchase
Basically a contract for the hire of goods with an option for the debtor to purchase them at the end of the agreement. Generally, the debtor only gets to own the goods on payment of the final instalment. Until then the hire purchase company owns the goods.

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I
Independent contractor
Someone who is self-employed and works under a contract for services (rather than a contract of employment). Independent contractors have less employment rights than employees.
Intestacy : intestate
When a person dies without leaving a will he/she is described as dying intestate. Certain legal rules called the intestacy rules will determine how the person's estate is distributed.

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J
Joint tenancy : joint tenants
Joint tenancy is a form of property ownership. It is particularly suitable for married couples. If a joint tenant dies, the remaining joint tenant(s) automatically becomes the owner of the deceased's interest in the property (e.g. if a couple own a house as joint tenants and one of them dies, ownership of the house automatically transfers to the survivor.

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K
Knowledge of Defect
Appearance defects for all goods must be taken into account in deciding whether or not goods are of satisfactory quality.

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L
Lawyer
general term for any person who is professionally qualified to practise law.
Legacy
A gift under a will.
Letters of administration
Official proof of the identity and appointment of people authorised to administer the estate of a person(s) who died without leaving a will.
Limitation clause
Clause in which a party seeks to limit his liability to a particular sum of money, or otherwise to restrict a right of action (e.g. by imposing a time limit on notifying a claim).

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M
Manufacturer's guarantee
Some goods (e.g. electrical) have Manufacturers' guarantees. Claiming under such guarantees often results in fewer quibbles than claiming against the seller but a buyer only has the rights stipulated in the guarantee.
Merchantable quality
This term has been replaced by the concept of satisfactory quality (see ‘satisfactory quality').
Misrepresentation
An untrue statement of fact which induces someone to enter into a contract (e.g. someone decides to buy a car on being (falsely) told by the seller it has only had one lady owner). Misrepresentation makes a contract voidable (see ‘voidable') and may give rise to a damages claim.

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N
Negligence
To establish Negligence in the legal sense it is necessary to prove that the defendant owed the claimant a duty of care and that he breached that duty by failing to observe the standards of the reasonable person. If the claimant succeeds, compensation will be in the form of damages. (Claims resulting from road accidents are brought in the tort of negligence.)
Nuisance
Nuisances are divided into private nuisances and public nuisances. Private nuisance regulates unreasonable interference with an owner occupier's use or enjoyment of his land. Public nuisance is primarily a crime which protects certain public rights.

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O
OFT
Office Of Fair Trading.
Ombudsman
A government official, who investigates citizens' complaints against the government or its functionaries.

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P
Package Holiday
A pre-arranged combination of at least two of the following components when sold, or offered for sale, at an all-inclusive price, and when the holiday is for more than 24 hours or otherwise includes overnight accommodation:-
• transport;
• accommodation;
• other tourist services
Package holidays are governed by the Package Travel, Package Holidays and Package Tours Regulations 1992.
Part payment
Payment of part of the price in advance.
Party wall
A wall (or fence), the ownership of which is divided vertically between neighbouring properties so each property owns one distinct half of the wall (or fence).
Personal representative
General term for any person officially appointed to administer a deceased's estate.
Planning permission
This is required for 'development' and a 'material change of use' of property. For minor building work (e.g. a porch) there may be no need to apply for express planning permission.
Privity of contract
Generally only someone who is party to a contract (e.g. a buyer or seller), has rights and liabilities under the contract.
Probate
When a person dies having left a will, a grant of probate is often needed as official proof of the identity and appointment of the executors (see ‘executors').

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Q
Quote
A “quote” is different to an “estimate”. The distinction is an important one because a quote usually constitutes an offer by the contractor to do the job for the quoted price. Whereas, an estimate will not normally be the contract price.

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R
Reasonableness
Generally this is a question of fact depending on all the circumstances.
Redundancy
An employee may be able to bring a redundancy claim if they have worked for their employer for two years or more and are made redundant (e.g. closure of workplace or surplus labour situations).
Rescission
Where someone has entered into a contract as a result of a misrepresentation (see ‘misrepresentation'), he may rescind (i.e. end) the contract. This has the effect of restoring both parties to their original (pre-contract) positions. (The aim is not to compensate the innocent party.) There are a number of bars to rescission (e.g. undue delay in seeking to rescind and affirmation.
Restrictive covenant
A legal restriction on the use of property imposed for the benefit of a neighbouring landowner and enforceable by him/her (e.g. not to use property for a business). Many properties are subject to restrictive covenants.

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S
Sale of Goods Act (SGA) 1979
Implies certain 'conditions' (see 'conditions') into contracts for the sale of goods (e.g. where goods are sold by a trader, the SGA makes it a term of the contract that the goods will be of satisfactory quality).
Sales puff
Exaggerated sales talk which is not actionable (e.g. 'the kitchen bargain of the year').
Satisfactory quality
Goods will be of satisfactory quality if they meet the standard that a reasonable person would regard as satisfactory. It is a relative standard dependant on matters such as price and description. Aspects of quality include durability, safety, appearance, and freedom from minor defects.
Service Contract
A contract which simply involves the provision of a service (e.g. dry cleaning or removals contract).
Subject to Contract
See 'Conditional Contract'.
Supply of Goods and Services Act (SGSA) 1982
Implies terms into work and material contracts (see 'work and materials contract') and service contracts. For example, where work is supplied in the course of business it makes it a term of the contract that it will be carried out with reasonable care and skill. Also if a price is not fixed by the parties, the SGSA states that a reasonable sum is payable.

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T
Tenancy in common:tenants in common
Tenancy in common is a form of property ownership. Each tenant in common owns a distinct share in the property. If a tenant in common dies, his/her share does not necessarily pass to the remaining tenant(s) in common; it will pass either under the deceased's will or the intestacy rules (see ‘intestacy').
Termination
A buyer's right to end a contract for a serious breach committed by the seller. The buyer rejects the goods and in return gets a refund. In addition, a buyer may be entitled to damages (see ‘damages').
Testator
The legal term for someone who has made a will.
Third party
Someone who is not a party to the contract (e.g. the recipient of a gift). Generally a third party has no rights/liabilities under a contract.
Where, however, a contract is made for the benefit of an identifiable third party (for example where goods are bought as a present for a named person), the third party may be able to sue if the contract is breached (Contracts (Rights of Third Party) Act).
Timeshare Act 1992
Aims to protect purchasers of timeshare accommodation (whether situated in the UK or elsewhere) by providing them with a right to full disclosure of relevant facts and a short period during which they can cancel without liability.
Tort
A civil wrong, the victim of which is entitled to redress in the civil courts.
Trade Associations
These are not consumer protection agencies as such but many of them operate voluntary conciliation (see ‘conciliation') and arbitration (see ‘arbitration') procedures to resolve disputes between their members and consumers. The Association of British Travel Agents (ABTA) is one of the best known Trade Associations.
(TDA) 1968
Trade Descriptions Act - it is a criminal offence for a trader to either apply a false trade description to goods or otherwise supply goods to which a false trade description has been applied (e.g. by the manufacturer). The most prevalent offence of this type is selling a car with a false mileometer reading. Prosecutions tend to be brought by the trading standards departments of local authorities.
Trespass
A person commits trespass to land when they enter another's land without their permission. A trespasser may be sued in the civil courts. (Contrary to popular belief, trespass is a tort (see ‘tort') not a crime.)

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U
Unfair Contract Terms Act 1977
Controls exclusion and limitation clauses (see ‘exclusion clause' and ‘limitation clause').The Act gives consumers greater protection than businesses. Exclusion/limitation clauses will often be ineffective as against a consumer.
Unfair dismissal
An employee may be able to bring an unfair dismissal claim where either there was insufficient reason for their dismissal or where the dismissal was handled unfairly. An employee must generally have worked for his employer for one year or more to be able to bring an unfair dismissal claim (but there are exceptions).
Unfair term
The Unfair Terms in Consumer Contracts Regulations 1999 govern unfair terms in standard form consumer contracts (i.e. contracts where there has been no scope for negotiation). An unfair term (as defined by the regulations) will not bind a consumer (e.g. a clause on a public car park notice which purports to exclude liability for personal injury is "unfair" and thus ineffective in a claim brought by a consumer against the owners of the car park).

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V
Void contract
A contract which has no legal consequences at all. Such contracts are very rare.
Voidable contract
A valid contract which can be brought to an end by the innocent party (e.g. because of a misrepresentation or improper pressure).

W X Y Z
Warranty
A relatively minor term of a contract, breach of which only entitles the innocent party to claim damages. (No right to reject.)
another word for a guarantee.
Work and Materials Contract
A contract for work which necessarily involves the supply of goods (e.g. double glazing/central heating installation).
The SGSA implies certain terms in relation to both the work (e.g. reasonable care and skill) and the materials (e.g. satisfactory quality).
Wrongful dismissal
This is a claim which may be brought by an employee whose employer has ended their contract of employment in breach of contract (e.g. by failing to give the employee sufficient notice).

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