Contract Law

Covenant (noun) refers to a solemn, formal agreement or promise between parties, often with binding, moral, or legal weight. It can also denote a treaty or alliance. In religious contexts, it denotes a sacred agreement between God and people. The term implies mutual commitments, obligations, and enduring fidelity that extend beyond casual promises.

Default (noun) refers to a preselected option or situation that occurs automatically if no action is taken. It can describe a financial failure to meet obligations, a standard setting in systems, or a standard course of behavior when no alternative is chosen. The term is commonly used in law, computing, and finance, often implying an established, baseline condition.

Equity is a noun referring to fairness or impartiality, often in contexts of law, finance, or social policy. It can denote the value of an ownership interest in an asset or the principle that individuals should be treated fairly. In business, equity represents ownership shares, while in ethics it emphasizes just treatment and equal opportunities. It is pronounced with two syllables: E-qui-ty.

Estoppel is a legal principle prohibiting a person from asserting something contrary to what is implied by their previous actions, statements, or deeds when another party has relied on them. It prevents unfair outcomes by preserving the integrity of commitments and representations already made. In practice, estoppel protects against inconsistent positions that would harm another who acted on those representations.

A fiduciary is a person or organization that has the legal duty to act in the best interests of another party, typically in financial, legal, or corporate matters. Fiduciaries must avoid conflicts of interest and act with loyalty, care, and prudence. The term emphasizes trust-based responsibilities rather than ownership of assets.

Fraud (n.) refers to the deliberate deception or misrepresentation intended to secure an unfair or unlawful gain. It denotes actions or schemes designed to mislead others, such as falsified claims, forged documents, or scams, often carrying legal consequences. In everyday use, it encompasses both the act itself and the person who commits it, or a situation marked by deception.

Indemnity is a legal or contractual promise to compensate for harm or loss, typically by paying money to cover damages. It also refers to protection against such liability. The term is often used in insurance, contracts, and tort law to allocate risk and ensure compensation for specified harms.

Interpretation is the act of explaining or presenting the meaning of something, or a particular way of explaining meaning. It involves translating ideas, data, or events into understandable conclusions or narratives, often shaping how others perceive information. In practice, interpretation can be formal (legal/academic) or informal (personal viewpoint or performance).

Jurisdiction is the area or range of authority granted to an individual or organization, such as a court or government agency. It also refers to the geographic area within which such authority applies. The term is widely used in legal and governmental contexts and implies both power and territorial reach. In practice, jurisdiction determines which court or body has the right to hear a case or enforce laws.

Liability is a legal or financial obligation that someone is responsible for, such as debt or potential risk. It can also refer to the state of being legally answerable for something. In everyday use, it often describes financial exposure or responsibility that could lead to loss or liability insurance coverage.

Litigation is the process of taking a dispute to a court of law. It involves filing suits, presenting evidence, and pursuing or defending legal claims through judicial proceedings. The term describes a formal, often adversarial, legal action that resolves conflicts between parties within a judicial system.

Negligence is the failure to take reasonable care or to exercise proper caution, resulting in unintended harm or loss. It implies a breach of a duty of care, falling below expected standards, whether in law, medicine, or everyday responsibility. The term encompasses neglectful behavior rather than intentional wrongdoing and often carries legal implications in civil cases.

Performance (as a noun) refers to the act or process of carrying out a task, presenting or executing a work, or how well something functions or is received. It also denotes a public presentation or display. In professional contexts, it often implies measured effectiveness, skill, or achievement within a given domain.

Principal is a two-syllable adjective meaning the most important or chief in rank. It is pronounced with stress on the first syllable in most contexts, and it is distinct from the noun principal. As an adjective, it often modifies decisions, ideas, or roles, indicating primary importance rather than secondary or incidental status.