Glossary 457Fixed-term contractA contract which is agreed at
the outset to be in existence for a fixed time, rather
than being a contract which can be ended by giving
notice.
Floating chargeA company charge under which a
creditor takes a class of, or all of, the company’s
property, both present and future assets, as security
for a debt.
Force majeureclauseA term of a contract which
might excuse non-performance of the contract if this
was caused by matters beyond the control of the
parties, such as a tsunami.
ForeseeabilityThe extent to which damage or loss
was foreseeable.
Freezing injunctionAn injunction which prevents a
person from moving assets out of the jurisdiction of
the English courts. Previously known as a Mareva
injunction.
Frustration(1) Discharge of a contract on the
grounds that it has become impossible to perform,
illegal to perform or radically different from what
the parties contemplated. (2) Discharge of a contract
of sale of specific goods which perish after they have
been sold but before the risk has passed to the
buyer.
GoodsProperty which can be touched and moved.
(Not interests in land, money or things in action.)
GoodwillThe amount by which the market value of
a business is worth more than the value of its
individual assets.
Gratuitous agentAn agent who acts for no reward
or payment.
Gross payThe amount of pay made to an employee
before any deductions, such as tax, have been made.
(Compare net pay.)
Gross profitsAny pre-tax profits which remain
once all the business liabilities have been taken away
from gross takings. (Compare net profits.)
Gross takingsAll the money which a business
takes in.
HarassmentIn employment law, harassment means
unwanted conduct which is intended to have, or has,
the effect of violating a person’s dignity or creating
an intimidating, hostile, degrading, humiliating or
offensive environment for that person.
Hire (contract of)A contract under which
possession, but not ownership, of goods is given in
return for payment.Hire-purchase (contract of )A contract under which
goods are hired for a fixed time in return for regular
payments, with the hirer given an option to buy the
goods for a nominal sum when the agreement ends.
HMRCHM Revenue and Customs which was
formed in 2005, following the merger of the Inland
Revenue and HM Customs and Excise Departments.
Holding outA person who holds something
out represents that that thing is true and will
be prevented from denying the truth of the
representation as regards a person who has relied
on it.
Horizontal effectEU law which can be relied upon
by one individual to sue another individual.
(Contrast vertical effect.)
House of Lords(1) Formerly, the highest court in
the English legal system. (2) A law-making house
of Parliament in which Members of the House of
Lords sit.
Hybrid (or either way) offenceA criminal offence
which is neither particularly serious nor particularly
minor, and which may be tried either by the Crown
Court or by the magistrates’ court.
Illegal contractA contract which cannot be
enforced because its purpose is illegal.
Implied actual authorityActual authority of an
agent which is created by conduct rather than by
words.
Implied termA term which was not expressly
agreed by the parties but which was implied by the
courts or by a statute.
IndemnityA payment to compensate for expenses
properly incurred.
Independent contractorA person who works in a
self-employed capacity, rather than as an employee.
Indictable offenceA serious criminal offence,
which will be tried in the Crown Court in front of a
judge and jury.
InjunctionA court order requiring a person to do or
not to do some act.
Innocent publicationA defence to defamation
which is available only to a distributor.
Innominate termA term of a contract which is not
a condition or a warranty. If such a term is breached
the injured party will be entitled to damages but will
not be entitled to treat the contract as terminated
unless the breach deprived him/her of substantially
the whole benefit of the contract.Z01_MACI4097_03_SE_GLOSS.QXD 1/31/11 3:01 PM Page 457