458 GlossaryInnuendoIn defamation, a meaning which would
be known only to those with special knowledge.
Inquisitorial system of trialA system under which
the judge sets out to discover the facts.
InsolventUnable to pay existing debts. Individuals
who are insolvent may be made bankrupt.
Companies which are insolvent may be liquidated.
Intellectual property rightAn intangible property
right such as copyright, patent or trade mark.
Intention to create legal relationsOne of the
four main requirements of a contract. Even if
there is an offer, an acceptance and an exchange of
consideration, there will be no contract unless it
appears that the parties intended to create legal
relations.
InterestMoney charged in return for the use of
other money.
Invitation to treatIn contract, an invitation to make
an offer. Its main significance is that it is not itself an
offer.
InvoiceA document which a seller of goods or
services sends to a buyer, describing what has been
sold and showing the price and how much money is
due.
Joint and several liabilityPeople who have the
same liability so that any of them can be sued in
respect of it. The person sued may receive a
contribution from others who were liable.
Judicature Acts 1873 –1875Statutes which merged
the administration of common law and equity.
Judicial precedentThe system which operates in
England whereby the decisions (ratio decidendi) of
higher courts can be binding on lower courts.
Judicial reviewA procedure by which the
Administrative Court can declare decisions of public
law bodies to be illegal.
JudiciaryAll of the judges in the country make up
the judiciary.
JuryA group of persons who take an oath to decide
questions of fact in judicial proceedings. Juries of 12
sit in the Crown Court. Indictable offences are
tried by jury, summary offences cannot be. Hybrid
offences are sometimes tried by jury. Juries used to
sit in civil cases but generally do not do so any
more.
Justification(1) In defamation, a defence that the
allegedly defamatory statement was true. (2) Adefence to trespass to land, that the defendant has
legal authority to enter the land.
JurisdictionThe power of a court to hear a legal
case.
Lay magistrateA magistrate who is not trained
as a lawyer.
Lay personA person who is not trained as a
lawyer.
Law LordA judge who used to sit in the House of
Lords, e.g. Lord Hoffmann, before the Supreme
Court replaced the House of Lords.
Law reportsRecords containing the full decisions
of certain cases made by precedent-making courts.
LegislationLaw made or approved by Parliament
in the form of statutes or delegated legislation.
LibelDefamation in a permanent medium, such as
writing.
LicencePermission granted by an occupier of land
to enter onto the land.
LienA right to keep possession of another’s goods
until a debt is paid.
Lieu (in lieu)Instead of.
Limited companyA company in which the liability
of the members is limited to paying fully for their
shares. Beyond this, the members have no liability to
pay the debts of the company. Most companies are
limited.
Limited liability partnershipA business
organisation, with two or more members, which
shares some of the features of a partnership and
some of a limited company.
Liquidated damages clauseA term in a contract
which sets out the amount of damages to be paid if
the contract is breached, the amount specified being
the amount which the parties genuinely thought that
the loss would be in the event of breach. The amount
specified will be the amount payable, no matter
what the actual loss turned out to be. Contrasted
with a penalty.
LiquidationThe ending of a company’s existence,
or an LLP’s existence, when its debts are paid
and any surplus assets are divided amongst
the shareholders or members. Also known as
winding up.
LiquidatorA person appointed by a court to
liquidate a company or an LLP.
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