Common Legal Terminology All Entrepreneurs Must Know
An Entrepreneur has to deal with different kinds of situations reading legal drafts, communicating with market experts, even meeting with lawyers and many more. when you are having meetings with those kinds of people. At least You need to have some basic understanding of the law and some basic legal words which make you smatter during negotiations. So, let’s know about some legal terminology.
Arbitration: It is one of the ADR methods (Alternative dispute resolution method). When disputing parties try to settle down their legal issues with opponents from outside of court that are called arbitration. In such kind of situation, arbitrator gets appointed with the help of disputing parties and opponents, or court of law. In the end, the arbitrator finds an acceptable solution for both of them.
Lien: It is known as a legal right that allows one person to have right over another one’s property. The right forms when the property owner makes the decision to get a loan by giving their own property to the leader as a security or collateral and promise that they will return the loan with full interests. If the owner gets failed to repay the loan, then the lender has the right to sell those properties.
Affidavit: It is a sort of document that contains a verified statement. The verification gets under the oath or perjury which indicates that every statement is true. The affidavit is used as evidence for some specific purpose such as reissues something, and instant proof. For instance, you can make an affidavit that you are 25 years old. The wrong statement may attract the provisions of any country’s Penal Code.
Injection: An injunction allows a defendant or entity to do a certain activity or cannot take a certain action. This order is issued from court to prevent those action or activity which affect or violate someone’s rights. Suppose that you have launched a book a year ago. A few months or a year later, you see that someone has plagiarized your book and has just published with slight changes in the market. In such kind of case, Injection may give you permission to take action against him and his publishers on the basis of Copyright infringement.
Due Diligence: It is a process of the personal investigation conducted by you before signing a contract or making an investment. For instance, if you are buying a house or other property, you have to be sure that the property is owned by the seller. You have to also check out that if the product has been mortgaged or has any disputes on it. Personal review about something is called Due Diligence.
Jurisdiction: Jurisdiction is power and authority conducted by a court to enforce laws or approve the order in the case. For instance, if you are becoming a part of a contract with other people from some state or city, then you both will insert a clause in the agreement stating that courts of the place will have jurisdiction to resolve the matter. We all have to keep in mind that every contract comes under a specific jurisdiction and we all should aware of jurisdiction governs.
Force Majeure clauses some time know as an act of god clause
It comes from a French word that means “Superior Force”. Sometimes it is also known as an act of god clause. This event happens outside the control of the parties. Let’s take the biggest example of a force Majeure clause, it is called 9/11. Nobody anticipated what happened at the time.
During the time, air travel got shut down for a week. Because of the reason a lot of projects got delayed, that is called Force Majeure. The law allows us to not enforce those provisions. This legal law is very common and followed in all kinds of contracts like construction contracts, purchase & sale of equipment and many others.