Glossary 453ArbitrationA method of settling civil disputes
whereby the parties agree that an arbitrator should
hear the case and award an appropriate remedy.
ArbitratorA disinterested person chosen by parties
in dispute to settle the dispute.
Articles of associationThe rules of a company,
which bind both the company and the members of
the company.
AssaultA tort, committed by any act which directly
and intentionally causes the claimant to reasonably
fear that he or she is immediately about to suffer
battery.
AuditorAn accountant who checks a company’s
accounts and reports to the members of the
company regarding the accounts.
Avoid (a contract)To call off future performance of
a contract on account of misrepresentation, duress or
undue influence. (See also Rescission.)
Balance sheetPart of a company’s accounts which
show the assets and liabilities of the company on a
particular date.
BankruptAn individual (not a company) can be
declared bankrupt by a court on account of not
being able to pay his or her debts.
Base rateAn official rate of interest to be paid on
credit. The base rate is set by the Bank of England
once a month. Many creditors set the rates of interest
which they charge by reference to the base rate.
Basic awardAn amount of money to which
employees who have been unfairly dismissed are
entitled.
BatteryA tort committed by a direct and
intentional physical contact with the claimant’s body
without the claimant’s consent.
BeneficiaryA person entitled to the benefit of
property which is held on trust.
Bilateral contractA contract in which the
consideration of both parties consists of a promise.
(Almost all contracts are bilateral.)
BillA proposed Act of Parliament before it has
received the Royal Assent.
Bill of exchangeA cheque, or other unconditional
order in writing requiring one person to pay
another.
Board of directorsDirectors of a company acting
collectively. The board can exercise all the powers of
the company.Board meetingA meeting of the board of directors.
Bona fideIn good faith or honestly.
Breach (of term/contract)Breaking the contract by
not performing a contractual obligation.
Bulk (in sale of goods)Goods form part of a bulk
if they are contained in a defined space or area and
all the goods are interchangeable with all the other
goods.
Burden of proofThe obligation to prove facts or to
prove a legal case.
Cab-rank ruleThe rule that a barrister, like a taxi,
should provide his services to anyone willing to pay
for them.
Capacity (in contract)The power to make a contract.
CapitalMoney or wealth.
CausationThe relationship between cause and
effect.
Cause of actionThe factual situation which gives a
person a right to a legal remedy.
Certificate of incorporationCertificate issued by
the Registrar of Companies which shows that a
company has come into existence.
Chambers(i) The rooms from which self-employed
barristers work. (ii) Rooms attached to a court in
which a judge conducts business which does not
need to be done in open court.
Charge (in relation to companies)A property
interest given by a company to secure a debt, which
will cease to exist if the debt is repaid. Charges are
void if not registered with Companies House.
Chattel (personal)A physical thing which can be
touched and moved.
ChequeA bill of exchange which orders a bank to
pay money.
Circuit judgeA judge attached to a county court
who hears claims allocated to the multi-track or the
fast track.
Code of practiceA code which is produced
alongside some statutes, such as the Consumer
Protection Act 1987 to illustrate how the statute is
intended to work.
Codifying ActA statute which puts all of the
existing case law and statute law into one new
statute (e.g. Partnership Act 1890).
Commercial agentA self-employed commercial
agent is defined by the Commercial Agents (Council
Directive) Regulations 1993 as a self-employedZ01_MACI4097_03_SE_GLOSS.QXD 1/31/11 3:01 PM Page 453