Business Glossary

ACCOUNTING PERIOD

The time over which financial statements and accounts are prepared, usually measured over months, quarters or years.

ACCOUNTS

Every business is obligated by law to produce an annual set of accounts. In the case of those listed on the stock exchange (PLCs), they must also publish half-year results.

ACCOUNTS PAYABLE

Sums of money owed by your company.

ACCOUNTS RECEIVABLE

Money owed to your company.

ACQUISITION

The purchase of one company or resources by another.

ACTUARY

A person employed by pension providers and insurance companies to calculate accident rates, life expectancy and relevant payouts.

ADMINISTRATION

Businesses that can no longer service their debts are put into company administration, with the appointment of a licensed insolvency practitioner to either restructure or liquidate the business.

AFFILIATE MARKETING

A retailer or service provider advertising its goods or services via a third party in return for a commission on any sales.

ANNUAL EQUIVALENT RATE (AER)

The percentage of interest you’ll receive each year on savings and investments.

ANNUAL PERCENTAGE RATE (APR)

The total annual cost to borrow a sum of money, including any additional fees and charges.

ANNUITY

A contract between an individual and an insurance company in which the purchaser agrees to pay a lump sum or payments over a period of time in return for a regular future income from the insurance company.

ARBITRAGE

The process by which a person or business takes advantage of price differences in securities, currencies or commodities to make money.

ASSETS

Property owned by a business that has value or a future benefit.

AUDIT

An official inspection of a company’s, or individual’s, accounts.

B2B

Business to business.

B2C

Business to consumer.

BALANCE SHEET

A ‘snapshot’ of a company’s assets, liabilities and capital at a particular point in time.

BASE RATE

Set each month by the Bank of England, this is the country’s base rate of interest. This influences financial products and services when they set their own cost of borrowing.

BENCHMARKING

Checking your company’s standards by comparing them with certain criteria, e.g. the activities of a competitor.

BID-OFFER SPREAD

The buying (offer) and selling (bid) price of shares, bonds or currency. The ‘spread’ is the difference between those two prices.

BLACK SWAN

Financial events that are difficult to predict. So called because before people ventured to Australia, all swans were assumed to be white. No one had seen a black swan until then.

BLUE CHIP

A large company considered safe or prestigious. A term originating from poker, where the highest-value chips are blue.

BOND

An agreement made when money is borrowed from an investor at a set rate of interest. It is repaid over a set period of time. Bonds are rated from the safest (AAA) to the riskiest (D), also known as ‘junk bonds’.

BOOTSTRAPPING

(1) Building a start-up company with very little money, often relying on personal savings and pushing for the lowest possible operating costs, while implementing cost-saving systems such as fast inventory turnaround.

(2) Making a forecast beyond a certain period by using the forecasted data for that period.

BREAK-EVEN POINT

The point in time when you will have paid back all your debts, or when revenues exactly match expenses.

BRIDGING LOAN

A short term loan that allows the borrower to ‘bridge the gap’ to purchase an item, often a property, while they are waiting to free up funds from a sale.

BUSINESS ANGEL

Also known as an angel investor. An individual who provides capital for a business start-up in return for a stake in the company.

BUSINESS CYCLE

The tendency for economies to experience peaks and troughs that follows a cyclical pattern – known colloquially as ‘boom and bust’. Governments are tasked with smoothing the peaks and troughs and limiting the effect of these cycles on consumers and businesses.

CAPITAL

Money invested into a company or project by its owners.

CAPITAL EXPENDITURE (CAPEX)

Money spent by a company either to buy fixed assets or to add to the value of existing fixed assets with a useful life that extends beyond the taxable year. With regard to tax, capital expenditure cannot be deducted in the year the money is paid. Compare with operating expenditure (OPEX), which refers to ongoing costs to run a product, service or system.

CASH FLOW

The movement of cash into and out of a business

COLLATERAL

Something lenders can use to give security against a loan. Often this is a major asset such as a house.

COMMODITY

Any item which can be freely bought and sold. Examples include gold, food products and coffee beans.

COPYRIGHT

The exclusive legal right, owned by the individual or group who created a work, or by an individual or group assigned by the originator, to use certain material and to allow others the right to use the material.

CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility (CSR) is a form of self-regulation, where companies integrate social, environmental and ethical policies into their overall business strategy. Companies embracing CSR should take responsibility for their actions and take a proactive approach to having a minimal negative impact on the world.

CREDITOR

A person or firm that has lent your business money or to whom you owe money.

CRITICAL SUCCESS FACTOR

An element that must occur in order for a business to achieve its ultimate goal.

DEBTOR

A person or firm that owes money to you or your business.

DEPRECIATION

The reduction in the value of assets over time, usually due to wear and tear.

DIVERSIFICATION

When new products, services, customers or markets are added to a company’s portfolio. Diversification usually occurs as a risk reduction strategy.

DIVIDEND

Money paid regularly by a company to its shareholders.

ECONOMIC GROWTH

This is the term used to describe an increase in the amount of goods and services produced in an economy over a period of time.

ECONOMIES OF SCALE

The cost advantages obtained by a business when buying an item in bulk. The price of an item usually decreases as the amount of units bought increases.

ENTERPRISE VALUE

The market value of a business, calculated by market capitalisation times current share price, minus cash, plus debt.

EQUITY

The difference between the company’s assets and liabilities.

ETHICAL INVESTMENT

Investments made in companies that are specifically chosen for their environmental or moral credentials. Defence contractors, or companies known to use contentious labour practices, will generally be avoided by ethical investors.

ETHICAL TRADE

Often used as an umbrella term for any business practices that promote socially and/or environmentally responsible trading.

EXIT STRATEGY

A plan to enable you to leave your business whilst recouping capital invested and minimising losses.

EXPORT

Selling your goods or services overseas.

FAIRTRADE

An organised movement enabling producers in developing countries to receive a fair price for the items they produce. Fairtrade certification is now commonplace in many sectors, particularly food, with several large brands now stating that their products are ‘certified Fairtrade’ on their packaging.

FINANCIAL MANAGEMENT

Planning, analysing, monitoring, organising, reviewing and controlling an organisation’s monetary resources. Responsibility for financial management often falls to the finance director, and by extension the financial department.

FISCAL YEAR

Also known as a financial year, the fiscal year is a set period used to calculate financial statements. The period used differs between countries and between businesses, although in the UK the year between 6th April and 5th April is most often used for personal taxation. The ‘official’ period for corporation tax runs from 1st April to 31st March, however companies can adopt any yearly period for corporation tax.

FIXED COST

Any cost that remains the same in the short-term, despite changes in volume. Fixed costs usually include, for example, rent, interest and salaries.

FTSE 100 INDEX

An index of of the 100 most highly capitalised blue-chip companies on the London Stock Exchange.

FUTURES

These are financial contracts that secure a predetermined future date and price for an asset. The assets used in futures contracts include commodities, stocks, and bonds.

GOLDEN HELLO

An attractive package (typically a bonus, or stock options) that are offered to a senior employee as an incentive to join the company.

GOLDEN SHARE

A golden share in a company is able to outvote all other shares in a specified circumstance.

GREY KNIGHT

During a business takeover, this is a bidder who has no clearly stated intentions.

GROSS

The total amount of money earned in a period of time before deductions such as taxes.

GROSS DOMESTIC PRODUCT (GDP)

GDP is the sum of all goods and services produced in the country’s economy. If it is up compared to the previous three months, the economy is growing. If GDP is down, the economy is contracting.

GROSS NATIONAL PRODUCT (GNP)

Another way to measure the economy, but also the welfare of British citizens. This is GDP plus the profits, interest and dividends received from British residents abroad and minus those profits, interest and dividends paid from the UK to overseas residents.

HALF-YEAR

A term used to describe six months into the financial year, when British listed companies must produce profit figures.

HEDGE FUNDS

An investment fund that uses a wide range of strategies, often risky, to earn above average returns for its members. This alternative type of investment is managed more actively than others and is only open to professional investors and institutions.

HORIZONTAL MERGER

When two companies within the same industry and at the same stage in production merge together.

HOSTILE TAKEOVER

A takeover bid of a company that is deemed unacceptable or has unwelcome terms as deemed by the company’s board.

HYPERINFLATION

Rapid, or out of control inflation. It usually only occurs during wars or during severe political instability.

IMPORT

Buying goods or services from overseas and bringing them into the country.

INCOME STATEMENT

Determines the net income/profit of a business. An annual summary of both income and expenses.

INDUSTRIAL OUTPUT

An indicator of future economic growth as it is a measure of the manufacturing output of an economy.

INFLATION

A general increase of the price of goods and services within an economy

INSIDER TRADING

The trading of shares based on confidential information that is not in the public domain. It was made illegal in the UK in 1980.

INSOLVENCY

When a company becomes unable to pay off its creditors, or its liabilities exceed its assets.

INSTITUTIONAL INVESTOR

A company or organisation that acts on behalf of private investors and invests via pension and life insurance funds.

INTELLECTUAL PROPERTY

Any works or inventions that are original creative designs. The individual or company responsible for the designs will be entitled to apply for a copyright or trademark on the designs.

INTERIM PROFIT STATEMENT

An update to shareholders on a company’s unaudited profits for the first half of the financial year.

INVESTMENT TRUST

A company on the stock exchange that only invests in other companies.

INVOICE FACTORING

Invoice factoring involves a business selling its invoices on to a third party, who will then add their own fee to the charges and seek the money from the debtor.

KEY PERFORMANCE INDICATOR

A key performance indicator (KPI) is a measure of performance to assess the success of a company or a certain activity the company is taking part in.

LEVERAGED BUYOUT

When a company is acquired using borrowed funds. The debt is usually repaid by money made by the acquired company.

LIBOR RATE

Libor stands for the London interbank offered rate and provides the average interest rate at which major global banks borrow from one another. It is based on five currencies:

• US Dollar
• Euro
• British Pound
• Japanese Yen
• Swiss Franc

Libor is also the basis for consumer loans in countries worldwide. It impacts both consumers and financial institutions.

LIQUID ASSET

Any asset which can be easily converted into cash.

LIQUIDITY

The ease with which a company’s assets can be converted into cash.

MACROECONOMICS

A part of economics that seeks to simplify and show the progress of whole economies rather than focus on individuals or groups (see microeconomics).

MANAGED FUND

There are two ways in which a fund can be controlled:

• Actively. A fund manager buys and sells to maximise gains and minimise losses.
• Passively. A computer programme tracks the performance of a market.

MARGIN

A profit margin is how much money a company has made. For example, a gross profit of £1m on sales of £10m is a 10 per cent profit margin. Companies can compare profit margins with others to see how they are doing.

MARKET SEGMENTATION

A market segment is a division of a market with similar characteristics (e.g. age, gender, religion) that cause them to demand similar products and/or services. For example, in an area with a large Jewish community, kosher foods are likely to be in greater demand.

MARKET SHARE

The percentage or portion of the overall market controlled by one company.

MARKETING MIX

The combination of marketing elements used by a company to encourage consumers to purchase its product or service. Also known as the seven Ps: product, price, promotion, place, people, process, physical evidence.

MERGER

When two or more companies are combined into one.

MICROECONOMICS

This is a part of economics that concentrates on the actions of individuals and groups, rather than of whole economies (see macroeconomics).

NATIONAL INSURANCE

A form of tax which everyone currently employed must pay in order to qualify for benefits, including the state pension.

NEGATIVE EQUITY

When the value of an asset you have already bought becomes worth less than the price you initially paid.

NET

The amount of profit remaining after deductions such as tax have been made.

NET ASSET VALUE

A way of measuring investment trusts. Take the total number of its assets minus its liabilities.

NIESR

National Institute of Economic and Social Research.

NOMINAL INTEREST RATE

An interest rate that isn’t adjusted for inflation.

NOMINAL VALUES

These values do not take inflation into account.

NON-EXECUTIVE DIRECTOR

A director who helps the company and offers an independent view on strategies and performance but is not actively involved in the day-to-day running.

OFFSHORE ACCOUNT

Funds which are managed outside of the UK.

OLIGOPOLY

A market where only a few firms control the percentage of total sales.

OPERATING EXPENDITURE (OPEX)

Ongoing costs for running a business, service or system that includes day-to-day expenditure such as sales and administration. Compare with capital expenditure, which is money spent on fixed assets or extensions to already-owned fixed assets. A photocopier, for example, would involve capital expenditure whereas toner and paper for the photocopier would be operating expenditure.

OPERATING PROFIT/LOSS

The profit or loss a company makes. These figures reflect how the business is performing.

ORDINARY SHARE

Also known as common shares, this is one unit of a businesses share capital.

OVERHEADS

Costs that do not vary regardless of the level of production and are not usually directly involved with the cost of production, such as rent.

PATENT

An official legal document confirming that an individual or company has the sole right to make, use or sell a particular invention.

PAYE

Pay as you earn. A method of collecting income tax on behalf of the Government by taking it directly from your employees’ weekly/monthly pay.

PHILANTHROPY

Making donations to charities in order to improve human wellbeing.

PRESENT VALUE

Comparison of the money available to the company in the future with the value of money it currently holds, e.g. due to interest.

PRIVATE LIMITED COMPANY

A type of legal company structure that, among other features, limits the personal liability of the company owners so that they can’t be made bankrupt by company debts.

PRIVATISATION

The process of moving state-owned assets into the private sector.

PRODUCER PRICE INDEX

A measure of inflation in goods bought and manufactured by British-based industry.

PRODUCT ELASTICITY OF DEMAND (PED)

The degree to which demand for products or services changes with the price. Essential goods, such as food, do not experience an increase in demand when the price changes, and are deemed “inelastic”, but non-essential goods do.

PROFIT AND LOSS ACCOUNT

A financial statement that shows any incomes or outgoings of a company over a certain period of time so as to show the net profit or loss for that period.

QUANTITATIVE EASING

A monetary policy used by central banks to stimulate the economy through additional money supply, whereby a central bank will purchase government bonds and other financial instruments such as mortgage backed securities. Incorrectly termed ‘printing money’.

QUOTA

A trade restriction set by a government on how much of a product can be imported and exported.

RATE OF RETURN

Represented as a percentage and is the annual income an investment makes back.

REAL INTEREST RATE

The rate of interest minus the current rate of inflation.

REAL VALUES

Real values show how relative particular prices are to prices in general. They are adjusted according to inflation.

RECESSION

A period of severe economic decline. Defined by a contraction of GDP for six months (two quarters) or longer.

RETURN ON INVESTMENT

The earning power of an asset or activity measured as a ratio of the net income of the activity to the operational cost. Return on investment (ROI) lets a company know whether an activity is profitable enough to continue.

REVENUE

Amounts of money received by (or owed to) a company for goods or services provided.

SHARE INDEX

Tracks the value of shares on the exchange to demonstrate their performance.

SHARE OPTIONS

A right to buy shares in a company in the future, at a favourable price, in addition to a regular salary if the person meets specific performance targets or predetermined criteria.

SHAREHOLDER

An owner of shares in a company.

SME

Small and medium-sized enterprises. A small business has fewer than 50 staff and a medium-sized business has fewer than 250 staff. Micro-businesses, with fewer than 10 staff, would also come under the term ‘SME’.

SOCIAL ENTERPRISE

Social mission driven businesses, with social and/or environmental aims, that use market-based strategies to achieve their goals. Social enterprises can be both non-profit and for-profit.

STAKEHOLDERS

Any individual or party that has an interest in or may be affected by a business and/or its activities. This can include anyone, from shareholders to residents of the local community.

SUPPLY CHAIN

The different elements making up the process involved in producing and distributing an item or items.

SUSTAINABILITY

The use of natural resources with a minimal impact on the environment; e.g. no depletion of resources. For example, a company that manufactured paper would be sustainable if it only made 100 percent recycled paper or planted a new tree for each one it cut down.

TAKEOVER

The buying out of one company by another.

TRADE BALANCE

Only taking visible trade into account (the import and export of physical goods) the trade balance shows the trade position of an economy.

TRADEMARK

A logo, brand name or phrase legally registered by one company.

TRIPLE BOTTOM LINE

People, planet, profit. The bottom line was originally considered as just profit. In recent years, with the growth in popularity of corporate social responsibility, businesses are increasingly measuring project success not only in monetary terms, but also by examining their social and environmental performance.

TURNOVER

The total sales of a business or company during a specified period.

UNIT TRUST

A unit trust invests money in the stock market on behalf of a group of private investors that have put all their money together to invest and be managed by a fund manager.

UNQUOTED SHARES

Some companies choose to not be listed on the stock market, or they may not meet the listing requirements. Therefore the shares are ‘unquoted’.

VENTURE CAPITAL

Capital invested into higher-risk projects, usually start-up businesses.

VERTICAL MERGER

A merger between companies that are in the same industry but are not at the same production stage. For example, if a car manufacturer buys a tyre company. They are part of the car manufacturing industry, but now the car maker can reduce the cost of tyres.

VOLUME

The number of shares traded on the London Stock Exchange during a given time.

WITHOUT-PROFITS POLICY

An insurance policy that does not share in the profits of the business that issued it.

WORKING CAPITAL

The capital a business uses in its day-to-day trading. It’s the difference between current assets and current liabilities. It provides an indication of liquidity and the business’es ability to meet its current obligations.

WORK-LIFE BALANCE

The balance in demands of both life at work and personal life.

YIELD

The income from an investment. Calculated by taking the annual dividend or interest payment, multiplying by 100 and dividing by the current market price.

ZOMBIE FUNDS

More formally called closed funds. The name given to a closed, with-profits fund that no longer accepts new business until the existing policies mature.

Legal Glossary

ADJOURNMENT

The postponement of a court hearing or legal proceeding to a later date.

ADMINISTRATOR

A person appointed by a court to manage the estate of someone who has died without a valid will.

ADMISSION

A statement made by a party in legal proceedings that is adverse to their own case.

ADVERSE POSSESSION

The process of acquiring legal title to land by possessing it for a specified period without the permission of the legal owner.

ADVOCATE

A legal professional who represents a client’s case in a court or tribunal. This role is performed by barristers and solicitor-advocates.

AFFIDAVIT

A written statement of facts, confirmed by the oath or affirmation of the party making it (the deponent), and signed before a person with the authority to administer oaths, such as a solicitor.

AGENT

A person or entity authorised to act on behalf of another person (the principal). For instance, a solicitor acts as an agent for a client purchasing a property.

AGREEMENT

A mutual understanding between two or more parties about their rights and responsibilities. An agreement can be legally binding if it meets certain criteria, creating a contract. For example, a divorcing couple might formalise a financial settlement agreement.

ALLEGATION

A statement asserting a fact, often made without immediate proof, that someone has committed a wrongdoing or illegal act. An allegation remains unproven until adjudicated by a court or tribunal.

ALTERNATIVE BUSINESS STRUCTURE (ABS)

A type of legal practice that allows non-lawyers to have ownership or management roles. Authorised by the Legal Services Act 2007, an ABS can provide a mix of legal and other professional services.

ALTERNATIVE DISPUTE RESOLUTION (ADR)

Methods for resolving disputes outside of the formal court system. Common forms include mediation, arbitration, and conciliation. ADR is often quicker and less expensive than litigation.

ANCILLARY RELIEF

An older term for a financial order sought during divorce, nullity, or judicial separation proceedings. The current term is ‘financial remedy’. It refers to applications for maintenance, lump sums, property adjustments, and pension sharing orders.

APPEAL

A legal process where a party requests a higher court to review and reverse a decision made by a lower court.

APPELLANT

The party who brings an appeal to a higher court.

APPOINTEESHIP

A legal authority granted by the Department for Work and Pensions (DWP) allowing a person or organisation (the appointee) to manage state benefits on behalf of someone unable to do so themselves.

ARBITRATION

A form of alternative dispute resolution where parties submit their dispute to an impartial arbitrator. The arbitrator’s decision, known as an award, is legally binding and enforceable.

ARTICLES OF ASSOCIATION

The document that sets out the internal rules for running a limited company, defining the duties and powers of its directors and the conduct of shareholders’ meetings.

ASSETS

Property of any kind owned by a person, company, or estate that has monetary value. Assets can be tangible (e.g., property, cash) or intangible (e.g., intellectual property, shares).

ASSOCIATE

A solicitor or other lawyer employed by a law firm who holds a position senior to a newly qualified solicitor but is not a partner.

ASSURED SHORTHOLD TENANCY (AST)

The most common type of tenancy agreement in the private rented sector in England and Wales. It typically runs for a fixed term, after which the landlord can regain possession by giving valid notice.

ASSURED TENANCY

A type of tenancy, commonly used by housing associations, that offers tenants long-term security of tenure. A landlord can only evict an assured tenant by obtaining a court order based on specific legal grounds.

ASYLUM

Protection granted by a state to a person who has left their home country as a refugee and is unable or unwilling to return due to a well-founded fear of persecution.

ATTORNEY

In the UK, this term most commonly refers to a person appointed under a power of attorney to make decisions on another person’s behalf. It is not generally used as a synonym for lawyer.

BAIL

The temporary release of a person awaiting trial, sometimes subject to conditions such as lodging a sum of money as a guarantee.

BALANCE OF PROBABILITIES

The standard of proof required in civil law cases. A court is satisfied that an event occurred if it considers that, on the evidence, the occurrence of the event was more likely than not.

BANKRUPT

The legal status of an individual who is unable to repay their debts. Bankruptcy proceedings can be initiated by the individual (a debtor’s petition) or by a creditor.

BARRISTER

A lawyer, regulated by the Bar Standards Board, who specialises in courtroom advocacy, expert legal opinions, and drafting specialist legal documents. Barristers are typically instructed by solicitors.

BENEFICIARY

A person who is legally entitled to receive property or funds from a will, trust, or life insurance policy.

BEQUEST

A gift of personal property (which includes money, shares, and belongings, but not land or buildings) made in a will. A gift of land or buildings is called a ‘devise’.

BREACH OF CONTRACT

The failure of one party to fulfil their obligations under a contract without a lawful excuse.

BURDEN OF PROOF

The duty placed upon a party in a trial to prove or disprove a disputed fact. In criminal cases, the burden of proof is on the prosecution to prove guilt beyond a reasonable doubt.

CASE LAW

Law established by the outcomes of former cases (judicial precedent), as opposed to law created by Parliament (statute).

CHAMBERS

A set of offices from which self-employed barristers practise. They share administrative staff, known as clerks, and office expenses.

CHARGE

A form of security interest over an asset, such as property, to ensure the repayment of a debt. A mortgage is a common type of charge.

CHATTELS

Items of personal property that are movable, as distinct from land and buildings (real property).

CIVIL LAW

The area of law that deals with disputes between individuals or organisations, typically concerning rights and liabilities. It is distinct from criminal law.

CLAIM FORM

The official court document used to commence legal proceedings in civil courts.

CLAIMANT

The person or party who starts a civil lawsuit. This term replaced ‘plaintiff’ in England and Wales.

CLIENT

An individual, group, or company that uses the services of a legal professional.

CODICIL

A legal document that amends, adds to, or partially revokes an existing will. It must be signed and witnessed with the same formalities as a will.

COHABITATION AGREEMENT

A document for unmarried couples living together that outlines the division of assets and financial arrangements should the relationship end. While not all clauses are guaranteed to be enforced by a court, they can clarify intentions.

COMMON LAW

The body of law derived from judicial decisions and custom, rather than from acts of Parliament (statutes).

COMPANY

A legal entity, incorporated to conduct business, that is legally distinct from its owners (shareholders).

COMPENSATION

A sum of money, often called ‘damages’, awarded by a court to recompense a claimant for loss, injury, or suffering.

CONCILIATION

A form of alternative dispute resolution in which a neutral third party (the conciliator) helps the parties in a dispute to reach a mutually agreeable settlement. The conciliator may meet with the parties together and separately.

CONDITIONAL FEE AGREEMENT (CFA)

An agreement where a solicitor’s fee depends on the outcome of the case, commonly known as ‘no win, no fee’. If the case is successful, the solicitor is paid their standard fee plus a ‘success fee’; if unsuccessful, they typically receive no fee.

CONDITIONS

The specific terms, requirements, or restrictions that form part of a legal agreement or document.

CONSENT ORDER

A legally binding order made by a court that confirms terms that have been agreed upon by all parties to a dispute. It is frequently used in family law for financial settlements on divorce.

CONTEMPT OF COURT

An act of disobedience or disrespect towards a court, which is punishable by a fine or imprisonment.

CONTINUING PROFESSIONAL DEVELOPMENT (CPD)

The mandatory annual training that lawyers and other regulated professionals must complete to maintain their professional standards.

CONTRACT

A legally binding agreement between two or more parties that creates mutual obligations. The essential elements are offer, acceptance, consideration, and an intention to create legal relations.

CONVEYANCING

The legal and administrative work involved in transferring the ownership of property from one person to another.

COPYRIGHT

A legal right granting the creator of an original work (such as literary, artistic, or musical work) exclusive control over its use and distribution.

COSTS LAWYER

A specialist lawyer who deals with the legal costs of court cases, such as quantifying and justifying the costs claimed by the winning party.

COUNSEL

A term for a barrister or a team of barristers representing a client in court.

COURT OF PROTECTION

A specialist court that makes decisions on financial or welfare matters for people who lack the mental capacity to make those decisions for themselves.

COVENANT

A formal promise or obligation contained within a deed or legal agreement. For example, a restrictive covenant in a property deed may prohibit certain actions.

CREDITOR

A person, company, or organisation to whom money is owed.

CROWN COURT

A senior court in England and Wales that deals with serious criminal cases (indictable offences). Cases are heard by a judge and jury.

CROWN PROSECUTION SERVICE (CPS)

The principal public agency for conducting criminal prosecutions in England and Wales.

CROWN PROSECUTOR

A lawyer who works for the Crown Prosecution Service.

CULPABLE

Responsible for a fault or wrong; blameworthy.

DAMAGES

A sum of money awarded by a court as a legal remedy for a civil wrong, such as a breach of contract or negligence. The aim of compensatory damages is to place the injured party in the position they would have been in had the wrong not occurred.

DECREE ABSOLUTE

The former name for the final legal document that ends a marriage. For divorce proceedings started after 6 April 2022 in England and Wales, this is now called a Final Order.

DECREE NISI

The former name for the provisional court order in a divorce, stating that the court sees no reason why the parties cannot divorce. For proceedings started after 6 April 2022, this is now called a Conditional Order.

DEED

A formal legal document that is signed, witnessed, and delivered to create a binding obligation or transfer property. Unlike a simple contract, a deed does not always require consideration (something of value exchanged).

DEFAMATION

The act of damaging a person’s reputation by making a false statement. It includes libel (written or published statements) and slander (spoken statements).

DEFENCE

The defendant’s formal response to the allegations made by a claimant in a civil case or by the prosecution in a criminal case.

DEFENDANT

The person, company, or organisation being sued in a civil case or prosecuted in a criminal case.

DEPUTY

A person appointed by the Court of Protection to make ongoing decisions about the property, finances, or welfare of someone who lacks the mental capacity to do so themselves.

DISBURSEMENT

An expense that a solicitor pays to a third party on a client’s behalf and then reclaims from the client. Common examples include court fees, land registry fees, and local authority search fees.

DISCLOSURE

The stage in legal proceedings where each party is required to reveal the relevant documents they hold to the other parties.

DISCRIMINATION

Unfair treatment of a person based on certain ‘protected characteristics’ under the Equality Act 2010. These include age, disability, gender reassignment, race, religion or belief, sex, and sexual orientation.

DIVORCE

The legal process of dissolving a marriage, conducted through the court system.

DOMICILE

The country that a person considers their permanent home, which has important implications for tax and inheritance law. It is distinct from nationality or residence.

DUE DILIGENCE

A comprehensive investigation of a business or person prior to signing a contract, often conducted before a corporate merger or acquisition.

DUTY OF CARE

A legal obligation to take reasonable care to avoid causing harm to others. A breach of this duty is a fundamental element of a negligence claim.

EASEMENT

A right benefiting one piece of land that is enjoyed over another piece of land owned by someone else. A common example is a right of way.

ENDURING POWER OF ATTORNEY (EPA)

A legal document created before 1 October 2007 that allows an appointed person (an attorney) to manage the property and financial affairs of another person (the donor). Valid EPAs are still functional, but new ones can no longer be created; they have been replaced by Lasting Powers of Attorney.

EQUITY

A body of law developed to provide remedies where the common law was too rigid. It is based on principles of fairness and justice and operates alongside the common law.

ESTATE

All of a person’s assets, including property, investments, and personal belongings, less any debts, at the time of their death. The estate is administered and distributed according to the will or the rules of intestacy.

ESTOPPEL

A legal principle that prevents a person from asserting something that contradicts what they had previously stated or what had been legally established.

EVIDENCE

Information presented to a court or tribunal to prove or disprove a point in question. It may include witness testimony, documents, or physical objects.

EXCHANGE OF CONTRACTS

The stage in a property transaction in England and Wales at which the buyer and seller exchange signed contracts, making their agreement legally binding. The completion date is usually fixed at this point.

EXECUTOR

A person or institution appointed in a will to administer the deceased person’s estate and distribute the assets according to the will’s instructions.

EXEMPT EUROPEAN LAWYER (EEL)

A historical term for a lawyer from an EU member state who was registered to practise in the UK. Following the UK’s departure from the European Union, this registration system has been replaced by new arrangements for foreign lawyers.

FEE EARNER

A person in a law firm, such as a solicitor, legal executive, or paralegal, whose work is charged directly to clients.

FEE SIMPLE ABSOLUTE IN POSSESSION

The legal term for freehold ownership of land, which is the most complete form of ownership recognised in law.

FIDUCIARY DUTY

A legal duty to act solely in another party’s best interests. This duty of trust and good faith is owed by people in positions of trust, such as a solicitor to their client or a trustee to a beneficiary.

FINAL ORDER

The concluding court order that legally dissolves a marriage or civil partnership. This term replaced ‘Decree Absolute’ for proceedings started in England and Wales after 6 April 2022.

FIXED FEE

A set price agreed upon in advance for legal services, regardless of the time taken to complete the work.

FORENSIC

Relating to the application of scientific methods and techniques to the investigation of legal matters.

FORFEITURE

The loss of property, assets, or a legal right as a penalty for wrongdoing. For example, under the forfeiture rule, a person who unlawfully kills someone cannot inherit from their estate. The term for an estate passing to the Crown when there are no known relatives is ‘Bona Vacantia’.

FRAUD

A criminal offence involving dishonestly making a false representation, failing to disclose information, or abusing a position of trust, with the intent to make a gain or cause a loss.

FREEHOLD

A type of property ownership where the owner possesses the building and the land it stands on outright and indefinitely.

FREEZING INJUNCTION

A court order that prevents a party from disposing of or dealing with their assets. It is also known as a freezing order.

GENERAL DAMAGES

Compensation awarded by a court for non-monetary losses resulting from a civil wrong, such as pain and suffering. The amount is not precisely calculable and is assessed by the court.

GIFT WITH RESERVATION OF BENEFIT

A gift made during a person’s lifetime where the giver retains some benefit from it (e.g., giving away a house but continuing to live there rent-free). For Inheritance Tax purposes, the asset may still be treated as part of the giver’s estate.

GRANT OF LETTERS OF ADMINISTRATION

The court order that appoints a person (an administrator) to manage the estate of someone who died without a valid will.

GRANT OF PROBATE

The court order that confirms the validity of a will and gives the named executors the legal authority to administer the deceased’s estate.

GRANT OF REPRESENTATION

The umbrella term for a court order authorising one or more people to manage a deceased person’s estate. The two main types are the Grant of Probate and the Grant of Letters of Administration.

GRIEVANCE

A formal complaint raised by an employee against their employer.

GROUNDS

The legal reasons that form the basis of a claim or legal action. For example, an appeal must have specific legal grounds.

GUARANTOR

A person who agrees to be responsible for another person’s debt or obligations if they default.

GUARDIAN

A person legally appointed to take on parental responsibility for a child if the child’s parents die before the child reaches 18. An appointment can be made in a will.

GUILTY

The verdict in a criminal case where the defendant is found to have committed the offence, or the defendant’s own admission of that fact (a guilty plea).

HEARING

Any proceeding before a court or tribunal where evidence is presented and arguments are made to decide a specific legal issue. A hearing can be a short, procedural matter or a full trial to determine the final outcome of a case.

HEARSAY

A statement made by a person outside of court which is later offered in court to prove the truth of the matter asserted. Hearsay evidence is generally inadmissible, but there are many exceptions to this rule.

HEREDITAMENT

Any item of property, whether tangible (e.g., land and buildings) or intangible (e.g., rights), that can be passed on by inheritance. The term is often used in the context of property law and local authority taxation.

HIGH COURT OF JUSTICE

A senior court in England and Wales that handles the most complex and high-value civil cases. It is divided into three divisions: the King’s Bench Division, the Chancery Division, and the Family Division.

HM LAND REGISTRY

The government department responsible for registering the ownership of land and property in England and Wales.

HM REVENUE & CUSTOMS (HMRC)

The UK’s tax, payments, and customs authority. It is responsible for collecting taxes, administering certain benefits like Child Benefit, and enforcing regulations such as the national minimum wage.

HOLDING COMPANY

A company that owns a controlling interest in one or more other companies, known as subsidiaries.

INCORPORATION

The legal process of creating a company or other corporate body, which gives it a separate legal identity from its owners.

INDEMNITY

A contractual obligation for one party to compensate another for a specific loss or damage that may occur.

INDEPENDENT LEGAL ADVICE

Advice from a lawyer who has no conflict of interest in the matter, ensuring a party fully understands the transaction they are entering into.

INHERITANCE

The property, money, or assets received from a person’s estate upon their death.

INHERITANCE TAX (IHT)

A tax levied on the value of a person’s estate when they die, and on certain gifts made during their lifetime.

IN-HOUSE LAWYER

A lawyer employed directly by an organisation, such as a company or public body, to provide legal advice and services to that organisation. Also known as in-house counsel.

INJUNCTION

A court order compelling a party to either perform a specific act (a mandatory injunction) or refrain from performing a specific act (a prohibitory injunction).

INSOLVENT

The state of being unable to pay debts as they fall due, or where total liabilities exceed total assets.

INSTRUCT

To formally engage a lawyer to represent you and provide them with details of the work you want them to do.

INTEGRITY

A fundamental professional principle for legal professionals, requiring them to act with honesty and high moral standards.

INTELLECTUAL PROPERTY (IP)

Intangible creations of the mind protected by law, such as inventions (patents), literary and artistic works (copyright), symbols and names (trademarks), and designs (design rights).

INTEREST

A legal right or claim to property. For example, a beneficial interest is the right to enjoy the benefits of property, even if someone else is the legal owner.

INTERIM ORDER

A temporary court order that stays in effect for a limited period or until a final hearing takes place.

INTERIM PROCEEDINGS

Court hearings that take place between the start of a case and the final trial to deal with procedural matters.

INTERVENTION

A regulatory process where a body, like the Solicitors Regulation Authority, takes control of a law firm’s documents and money to protect clients.

INTESTATE

The legal term for dying without having made a valid will. The estate is then distributed according to the rules of intestacy.

ISSUE

In inheritance law, a person’s direct descendants, such as children and grandchildren. In litigation, it means to formally commence legal proceedings by having the court process the claim form.

JOINT AND SEVERAL LIABILITY

A legal principle where two or more parties are each individually responsible for the full extent of a debt or obligation, as well as being responsible together. A creditor can claim the full amount from any one of the parties.

JOINT TENANCY

A form of co-ownership of property where the owners hold an equal and undivided share. Upon the death of one joint tenant, their share automatically passes to the surviving joint tenant(s) under the ‘right of survivorship’.

JUDGE

A public official with the authority to hear and decide cases in a court of law. The judge ensures proceedings are conducted fairly and applies the relevant law to the facts.

JUDGMENT

The final decision or ruling of a court in a legal proceeding.

JUDICIAL PRECEDENT

The common law principle that requires a court to follow the decisions of higher courts in previous cases with similar facts. This ensures consistency in the law.

JUDICIAL REVIEW

A type of court proceeding in which a judge reviews the lawfulness of a decision or action made by a public body.

JURY

A body of 12 citizens sworn to hear the evidence in a criminal trial and deliver an impartial verdict of guilty or not guilty. They are the deciders of fact, while the judge is the decider of law.

KING’S COUNSEL (KC)

A senior barrister or solicitor advocate appointed by the monarch on the recommendation of the Lord Chancellor, recognised for their outstanding skill and expertise in advocacy.

LANDLORD

The owner of a property who grants a lease or tenancy to another person (the tenant) in exchange for rent.

LASTING POWER OF ATTORNEY (LPA)

A legal document that allows a person (the donor) to appoint one or more people (attorneys) to make decisions on their behalf. There are two types: one for property and financial affairs, and one for health and welfare. An LPA remains valid even if the donor loses mental capacity.

LAW FIRM

An organisation that provides legal services, employing one or more lawyers.

LAW SOCIETY OF ENGLAND AND WALES

The professional body that represents and governs solicitors for the jurisdiction of England and Wales.

LAWYER

A general term for a person who is qualified to give legal advice and representation, such as a solicitor, barrister, or CILEX lawyer.

LEASE

A legal contract that grants a person (the lessee or tenant) the right to use a property for a specified period in return for rent paid to the owner (the lessor or landlord).

LEGACY

A gift of a specific sum of money left to a person or organisation in a will.

LEGAL AID

Government funding to help meet the costs of legal advice for those who are eligible.

LEGAL DISCIPLINARY PRACTICE (LDP)

A historical term for a type of law firm that allowed lawyers and a limited number of non-lawyers to work in partnership. This structure has now been replaced by the Alternative Business Structure (ABS) framework.

LEGAL EXECUTIVE (CILEX LAWYER)

A qualified lawyer who specialises in a particular area of law, regulated by the Chartered Institute of Legal Executives (CILEX).

LEGAL OMBUDSMAN

An independent and impartial body that resolves complaints about the service provided by lawyers and law firms in England and Wales.

LEGAL PROFESSIONAL PRIVILEGE (LPP)

The legal principle that protects the confidentiality of communications between a lawyer and their client. Such communications cannot be disclosed in legal proceedings without the client’s consent.

LEGAL SERVICES

Services of a legal or financial nature, such as providing legal advice or representation in court.

LIABLE

Legally responsible for an act, omission, or obligation.

LIABILITY

A legal responsibility, duty, or obligation.

LIBEL

Defamation expressed in a permanent form, such as in writing, printing, or broadcasting.

LICENSED CONVEYANCER

A specialist property lawyer who is regulated by the Council for Licensed Conveyancers.

LIEN

A legal right to hold onto another person’s property until a debt owed by that person is paid.

LIFE INTEREST

The right to receive the income or benefit from a property or asset for the duration of one’s life. The person holding this right is a ‘life tenant’.

LIMITED COMPANY

A business structure that has a separate legal identity from its owners (shareholders). The liability of the shareholders for the company’s debts is limited to the value of their shares.

LIMITED LIABILITY PARTNERSHIP (LLP)

A business structure that combines the features of a partnership with the limited liability of a company. It is a separate legal entity from its members.

LITIGANT

Any party to a lawsuit.

LITIGANT IN PERSON

An individual who represents themselves in court without the assistance of a lawyer.

LITIGATION

The process of resolving a dispute through the civil court system.

MAGISTRATE

A trained volunteer, also known as a Justice of the Peace (JP), who hears cases in a Magistrates’ Court. They deal with less serious criminal cases and some civil matters.

MANAGER

In the context of a law firm, this term typically refers to a partner in a partnership, a director of a company, or a member of a limited liability partnership.

MAGNA CARTA

A charter of rights agreed to by King John of England in 1215. It is a foundational document in the history of the constitution, establishing the principle that everyone is subject to the law.

MASTER OF THE ROLLS

The second most senior judge in England and Wales, who is the head of the Civil Division of the Court of Appeal.

MATERIAL FACT

A fact that is significant to an issue or matter and which may influence a person’s decision.

MATTER

A case, transaction, or file being handled by a law firm for a client.

MEDIATION

A form of alternative dispute resolution where an impartial third party (a mediator) helps parties in a dispute to negotiate their own settlement. The mediator does not decide the outcome.

MEMBER

A legal owner of a limited liability partnership (LLP).

MEMORANDUM OF ASSOCIATION

A document that states the initial subscribers wish to form a company under the Companies Act. It is a mandatory document for company registration.

MINOR

A person under the age of 18.

MISCONDUCT

A breach of the rules of professional conduct by a regulated person, such as a solicitor.

MISREPRESENTATION

A false statement of fact made by one party to another, which induces the other party to enter into a contract.

MITIGATION

The legal principle that a party who has suffered a loss must take reasonable steps to avoid or minimise that loss.

MONEY LAUNDERING

The process of concealing the origin of illegally obtained money by passing it through a complex sequence of commercial or financial transactions.

MORTGAGE

A legal agreement by which a bank or building society lends money at interest in exchange for taking title of the debtor’s property, with the condition that the conveyance of title becomes void upon the payment of the debt. The loan itself is also known as a mortgage.

MORTGAGEE

The lender in a mortgage agreement, such as a bank.

MORTGAGOR

The borrower in a mortgage agreement.

NEGLIGENCE

A failure to take reasonable care to avoid causing injury or loss to another person. It is a common type of tort.

NEGOTIATION

A discussion between parties in a dispute aimed at reaching an agreement. It is a form of dispute resolution.

NET ESTATE

The value of a deceased person’s estate after all debts, liabilities, and funeral expenses have been deducted.

NEXT OF KIN

An informal term for a person’s closest living relative. The term has no legal standing in England and Wales; a ‘next of kin’ cannot automatically make decisions for someone else, for which a Lasting Power of Attorney is required.

NO WIN NO FEE

A funding arrangement for a legal case, where a solicitor will not charge for their work if the case is lost. If the case is won, the solicitor is paid their fee, plus a ‘success fee’, by the losing party. The most common type is a Conditional Fee Agreement.

NON-MOLESTATION ORDER

A type of injunction used in cases of domestic abuse that forbids a person from molesting (including harassing, intimidating or pestering) another person.

NOTARY

A specialist lawyer, regulated by the Faculty Office of the Archbishop of Canterbury, who is authorised to formally witness signatures and certify the authenticity of documents for use abroad.

NOTICE

A formal legal communication informing a party of a fact or intention.

NUISANCE

A common law tort that protects a person’s right to the use and enjoyment of their land without unreasonable interference.

OATH

A solemn promise, often invoking a divine witness, regarding one’s future action or behaviour. In legal proceedings, it refers to a sworn promise to tell the truth.

OBLIGATION

A legal duty to do or refrain from doing something, which can be created by a contract, statute, or court order.

OCCUPATION ORDER

A court order in family law that regulates who can live in, enter, or be excluded from the family home.

OFFER

An expression of willingness to enter into a contract on specified terms. It is a key element for a binding agreement.

OFFICIAL COPY

An official copy of a document held by a public registry, such as an official copy of the title register from HM Land Registry.

OMBUDSMAN

An official appointed to investigate individuals’ complaints against a company or public organisation.

OMISSION

A failure to act where there was a legal duty to do so.

ORDINARY POWER OF ATTORNEY

A legal document where a person (the donor) gives someone they trust (the attorney) the authority to manage their financial affairs. This authority ceases automatically if the donor loses mental capacity.

OUTCOME

The final result or decision in a legal case, hearing, or other matter.

OUT-OF-COURT SETTLEMENT

A binding agreement reached between the parties to a dispute that resolves the issue without the need for a judge to make a final ruling.

PARALEGAL

A person who performs legal work under the supervision of a solicitor or other regulated lawyer. Many paralegals have a law degree but are not qualified as solicitors.

PARTNER

An owner of a business structured as a partnership. This includes equity partners who share in the profits and liabilities, and salaried partners who are employees but are held out to the public as partners. In an LLP, the equivalent role is a ‘member’.

PARTNERSHIP

A business relationship between two or more people with a view to making a profit, as defined by the Partnership Act 1890. In a traditional partnership, partners typically have unlimited liability for the firm’s debts.

PATENT ATTORNEY

A specialist legal professional who advises on and handles the legal process for obtaining patents for inventions. They are regulated by the Intellectual Property Regulation Board.

PERSONAL REPRESENTATIVE (PR)

The person legally entitled to administer the estate of a deceased person. The term includes executors (if there is a will) and administrators (if there is no will).

PLAINTIFF

The former term for a person who starts a civil lawsuit. In England and Wales, the term was replaced by ‘claimant’.

PLEADINGS

The formal written statements of fact and legal arguments filed by the parties in a civil lawsuit.

POWER OF ATTORNEY

A legal document that gives a person (the attorney) the authority to act on behalf of another person (the donor). See also ‘Lasting Power of Attorney’ and ‘Ordinary Power of Attorney’.

PRACTISING CERTIFICATE (PC)

The annual certificate issued by the Solicitors Regulation Authority (SRA) that authorises a person to practise as a solicitor in England and Wales.

PRE-ACTION PROTOCOLS

Court-endorsed procedures that parties are expected to follow before starting civil litigation, aimed at encouraging early settlement and efficient case management.

PRIMA FACIE

A Latin term meaning ‘at first sight’. It describes a matter that appears to be true based on the initial evidence.

PRIVATE LIMITED COMPANY (LTD)

A type of incorporated business where the owners’ liability is limited to the value of their shares. Its shares cannot be offered to the general public.

PROBATE

The legal and financial process of dealing with the estate of a deceased person. It generally refers to the court order (a Grant of Representation) that authorises the personal representatives to act.

PRO BONO PUBLICO

A Latin term, usually shortened to ‘pro bono’, for professional work undertaken voluntarily and without payment for the public good.

PROCEEDS OF CRIME

Money or assets gained through criminal activity.

PROMISSORY ESTOPPEL

A legal principle that prevents a person from going back on a promise, even if it is not supported by a formal contract, if the other party has relied on that promise to their detriment.

PROPRIETARY ESTOPPEL

An equitable remedy that may be available if a person has been led to believe they have or will get an interest in property, and have acted to their detriment in reliance on that belief.

PROSECUTION

The legal body, typically the Crown Prosecution Service, that brings criminal proceedings against a person on behalf of the state.

PROTECTED CHARACTERISTIC

A personal attribute protected from discrimination by the Equality Act 2010. These include age, disability, gender reassignment, race, religion or belief, sex, and sexual orientation.

PROXY

A person appointed to act or vote on behalf of another at a meeting, such as a company’s general meeting.

PUBLIC INTEREST

The welfare and well-being of the general public. It is a key consideration in certain legal decisions, such as judicial review.

PUBLIC LIMITED COMPANY (PLC)

A type of incorporated business whose shares can be offered for sale to the general public.

PURSUANT TO

A phrase meaning ‘in accordance with’ or ‘under the authority of’. For example, actions taken pursuant to a contract are actions taken to carry out its terms.

QUANTUM

The Latin term for ‘amount’. In a legal context, it refers to the amount of money or damages awarded in a civil claim.

QUORUM

The minimum number of people who must be present at a meeting for its proceedings to be valid.

REAL PROPERTY

Land and any buildings or structures attached to it. It is distinct from personal property (chattels).

RECEIVER

A person, often an insolvency practitioner, appointed to take control of and manage the assets of a company in financial distress or an individual in bankruptcy.

RECOGNISED BODY / SOLE PRACTITIONER

Historical regulatory terms for law firms. The current framework refers to SRA-regulated bodies, which includes recognised sole practices, law firms, and LLPs authorised by the Solicitors Regulation Authority.

REDEMPTION

The act of fully repaying a mortgage or other loan secured on property.

REDUNDANCY

A form of dismissal from a job, which occurs when an employer needs to reduce their workforce.

REGISTERED EUROPEAN LAWYER (REL)

A historical designation for a lawyer from an EU state who was registered to practise in England and Wales. This system has been largely replaced since the UK’s departure from the EU.

REGISTERED FOREIGN LAWYER (RFL)

A lawyer who is qualified in a jurisdiction outside of England and Wales and is registered with the SRA to be a manager or owner of a law firm in England and Wales.

REGISTERED OFFICE

The official address of an incorporated company, to which all official documents and correspondence are sent.

REGULATED INDIVIDUAL

A person who is authorised and regulated by a legal regulator, such as a solicitor regulated by the SRA or a barrister by the Bar Standards Board.

REMEDY

The means by which a court enforces a right, prevents a wrong, or provides compensation for a loss. Examples include damages, injunctions, and specific performance.

REMUNERATE

To pay a person for services rendered or for work done.

RESCISSION

The act of cancelling or setting aside a contract, returning the parties to the position they were in before the contract was made.

RESIDUARY ESTATE

The portion of a deceased person’s estate that remains after all specific gifts have been made and all debts and expenses have been paid.

RESTRICTIVE COVENANT

A clause in a contract or deed that limits what a person can do. Common examples include covenants in an employment contract that restrict a former employee’s business activities, or covenants on property that limit its use.

REVOCATION

The official cancellation or withdrawal of a decision, order, or legal document, such as the revocation of a will.

RIGHT OF SURVIVORSHIP

The legal principle in a joint tenancy whereby a deceased joint tenant’s interest in a property automatically passes to the surviving joint tenant(s), irrespective of the terms of any will.

RIGHTS OF AUDIENCE

The right of a lawyer to appear in court and speak on behalf of a client.

ROLL OF SOLICITORS

The official register of all solicitors who have been admitted to the profession in England and Wales, maintained by the Law Society.

SCAM

An illegal scheme or fraudulent act designed to cheat people out of money or property.

SCHEDULE

An appendix attached to a legal document that contains detailed information referred to in the main body of the text.

SECURED CREDITOR

A creditor who holds a charge or other form of security over a debtor’s assets, giving them priority for repayment if the debtor becomes insolvent.

SETTLEMENT

The resolution of a dispute, often by agreement between the parties without a full trial.

SETTLEMENT AGREEMENT

A legally binding contract, commonly used in an employment context, in which an employee agrees not to pursue certain legal claims against their employer in return for a sum of money.

SETTLOR

The person who creates a trust by transferring assets to a trustee.

SHAREHOLDER

An owner of a share in a limited company.

SLANDER

Defamation in a transient form, such as by spoken words or gestures.

SOLE PRACTITIONER

A solicitor who runs their own law firm alone, without any partners. The firm is known as a ‘recognised sole practice’.

SOLICITOR

A qualified legal professional who provides legal advice and representation to clients. They are admitted to the profession by the Solicitors Regulation Authority.

SOLICITORS REGULATION AUTHORITY (SRA)

The regulatory body for solicitors and law firms in England and Wales.

SPECIAL DAMAGES

Compensation awarded in a civil case for specific, quantifiable financial losses incurred by the claimant, such as lost earnings or medical expenses.

SPECIFIC PERFORMANCE

A court-ordered remedy, typically in contract cases, that requires a party to perform the specific obligations set out in the contract.

STANDARD OF PROOF

The level of evidence required to prove a case. In criminal law, it is ‘beyond a reasonable doubt’; in civil law, it is ‘on the balance of probabilities’.

STATEMENT OF CASE

A formal document, such as a claim form or a defence, which sets out the facts and legal arguments of a party’s case in civil litigation.

STATEMENT OF TRUTH

A declaration signed by a party or their lawyer, confirming that the facts stated in a legal document are true to the best of their knowledge and belief.

STATUTE

A written law passed by an Act of Parliament.

STAY OF PROCEEDINGS

An order from the court that temporarily or permanently suspends a legal case.

STRICT LIABILITY

Legal responsibility for damage or injury, even if the person found strictly liable was not at fault or negligent.

STRUCK-OFF

The most serious professional sanction for a solicitor, where their name is removed from the Roll of Solicitors, preventing them from practising.

SUBSIDIARY

A company that is controlled by another company, known as a holding company or parent company.

SUMMARY JUDGMENT

A judgment entered by a court for one party and against another party summarily, without a full trial.

SUPREME COURT

The final court of appeal in the United Kingdom for all civil cases, and for criminal cases from England, Wales, and Northern Ireland.

TENANCY

The legal right to occupy a property for a set period under an agreement with a landlord.

TENANCY IN COMMON

A form of co-ownership of property where each owner holds a distinct, separate share. Unlike a joint tenancy, there is no right of survivorship; the deceased’s share passes according to their will or the rules of intestacy.

TENANT

A person who holds a tenancy or lease for a property.

TERM

A specific clause or provision within a contract.

TESTATOR

A person who has made a will. The female form, testatrix, is now rarely used.

THIRD PARTY

A person or entity who is not one of the two main parties to a contract, legal case, or transaction.

TORT

A civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act. Negligence and defamation are examples of torts.

TRADEMARK ATTORNEY

A specialist legal professional who advises on and manages the registration of trademarks. They are regulated by the Intellectual Property Regulation Board.

TRAINEE SOLICITOR

A person undertaking a period of recognised training or ‘qualifying work experience’ at a law firm or other organisation as part of the process of qualifying as a solicitor.

TRANSPARENCY

In a legal context, often refers to the regulatory requirement for law firms to be open and clear about their services and pricing.

TRESPASS

Unlawfully entering onto another person’s land, or wrongfully interfering with their person or property.

TRIBUNAL

A specialist judicial body that hears disputes in a particular area of law, such as the Employment Tribunal or the First-tier Tribunal (Tax).

TRUST

A legal arrangement where one or more people (trustees) hold and manage assets on behalf of others (beneficiaries).

TRUSTEE

The person or institution that administers a trust.

ULTRA VIRES

A Latin term meaning ‘beyond the powers’. An act that is ultra vires is one undertaken without the legal authority to do so.

UNADMITTED

A term for a member of staff in a law firm, such as a paralegal or trainee, who is not on the Roll of Solicitors.

UNDERTAKING

A binding professional promise given by a solicitor, upon which the recipient is entitled to rely. Breaching an undertaking is a serious matter of professional misconduct.

UNDUE INFLUENCE

A legal principle where one person improperly uses their power or influence over another to persuade them to enter into a transaction.

UNFAIR DISMISSAL

The dismissal of an employee from their job for a reason that is not legally fair, or because the employer failed to follow a fair disciplinary and dismissal process.

UNLAWFUL

Contrary to or forbidden by law.

UNSECURED CREDITOR

A creditor who does not hold any charge or security over the debtor’s assets.

VALID

Legally binding, effective, or acceptable.

VICARIOUS LIABILITY

A form of secondary liability where one person (such as an employer) is held legally responsible for the wrongful acts of another (such as an employee).

VOID

Having no legal force or effect from the outset. A void contract is treated as if it never existed.

VOIDABLE

A contract that is valid but can be cancelled by one of the parties.

WARRANT

A legal document issued by a judge or magistrate that authorises the police or another body to make an arrest, search premises, or carry out another action.

WARRANTY

A contractual promise or assurance. A breach of warranty may give rise to a claim for damages.

WILL

A legal document in which a person sets out their wishes for the distribution of their estate after their death.

WITHOUT PREJUDICE

A legal principle that protects communications made in a genuine attempt to settle a dispute from being put before the court as evidence.

WITNESS

A person who gives evidence in legal proceedings, either by a written statement or orally in court.

WITNESS SUMMONS

A court order requiring a person to attend court to give evidence or to produce documents.

Agent

someone who acts on behalf of someone else. For example, a conveyancer who acts on behalf of a couple buying a house.

Agreement

where two parties reach consensus on a set of facts or course of action. For example, when a formerly married couple agree the terms of their divorce.

Allegation

a claim made against someone, often without proof. Or a claim that someone has engaged in an unlawful act.

Appointeeship

if a person is incapacitated and entitled to receive a retirement pension or other state benefits, the Department for Work and Pensions can choose an ‘appointee’ to receive those benefits on that person’s behalf. The appointee can be a relative, friend or someone from the caring professions (such as the local authority social services department).

Alternative dispute resolution

arbitration and mediation are alternative ways in which a dispute can be resolved, without going to court.

Alternative business structures (ABS)

a firm that is managed, owned or controlled by a mix of lawyers and non-lawyers offering legal services. A non-lawyer is a person who is not authorised to carry out reserved legal activities.

Ancillary relief

an application for financial support, following the presentation of a petition for divorce, nullity or judicial separation. The term arises because the financial application is ‘ancillary’ to the divorce petition.

Arbitration

a way of seeking to resolve a dispute without going to court: a third party (the arbitrator) looks at both sides of the dispute and makes a decision as to how it should be resolved. Those involved may agree to be bound by the decision of the arbitrator.

Assets

things owned by a person or organisation which usually have some value.

Associate

a person, usually employed by a law firm, who may be in charge of handling your case: often a lawyer, they are considered by the firm employing them to be a ‘senior assistant’.

Asylum

protection and immunity from extradition granted by a government to a political refugee from another country.

Assured shorthold tenancy

assured shorthold tenancy is normally for six months. You have no right to stay at the end of the tenancy period agreed if your landlord has given you valid notice to leave.

Assured tenancy

often used by public-sector landlords, assured tenancy gives you far greater rights to stay at the end of the tenancy period agreed.

Bankrupt

the legal status of a person or organisation that is unable to repay debts owned to its creditors.

Barrister

a lawyer regulated by the Bar Standards Board, often specialising in court room representation, drafting pleadings and expert legal opinions.

Beneficiary

someone who is entitled to a benefit (eg under a will or trust).

Bequest

a gift of money or personal property made in someone’s will.

Chambers

a collection of independent, self-employed barristers who share employed clerks to administer work, and who share the expense of such clerks, office buildings and brand name.

Chattels

personal belongings that can be moved from one place to another.

Civil law

the area of law covering disputes you may have with a person or an organisation.

Claimant

a person making a claim.

Client

someone who uses services provided by a lawyer or another legal professional.

Cohabitation contracts

these set out, in advance, what each member of the relationship expects of the other, both during the relationship and if they separate or one of them dies. They are ‘honourable agreements’, which means that not all clauses may be enforced by the courts, but they do limit disagreements and certainly provide some peace of mind.

Compensation

recompense for loss, injury, or suffering.

Compromise agreements

in a workplace dispute, if you can reach an agreement with your employer without going to a tribunal, this can be recorded in a ‘compromise agreement’. This is a legal document which confirms the terms of the settlement you have agreed, in exchange for which you give up your legal claim against your employer. You may be able to get your employer to make a contribution to your legal costs as part of the agreement.

Conciliation

an alternative to alternative dispute resolution where the parties to a dispute use a conciliator, who meets with the parties both separately and together in an attempt to resolve their differences.

Conditional fee agreement (CFA)

if a claim on a CFA is unsuccessful the solicitor typically receives no payment for their work (No Win No Fee). If the claim is successful the solicitor claims a higher than normal fee to reflect their risk in taking the case on.

Conditions

requirements, restriction or permission added onto a document.

Contract

an agreement signed by two or more parties setting out the terms of an arrangement – for example, between a buyer and a seller in a property transaction.

Continuing professional development (CPD)

the training that lawyers (and other professionals) are required to complete every year by the organisation regulating them. The Law Society’s courses are available on Law Society Learning.

Conveyancing

the processes involved in buying, selling or remortgaging a property to transfer its legal title from one person to another.

Costs lawyers

a lawyer who settles the legal costs of court cases, and who is regulated by the Association of Costs Lawyers.

Counsel

a term used to describe a barrister.

Creditor

a person or organisation to whom money is owed.

Crown Prosecution Service (CPS)

the CPS is the organisation that prosecutes criminal cases investigated by the police in England and Wales.

Crown prosecutor

a lawyer (generally a solicitor or a barrister) working for the Crown Prosecution Service.

Crown courts

Crown courts deal with more serious cases. If you plead not guilty, your case will be heard in front of a judge and jury of 12 people, who will decide whether you are guilty or innocent, after they have heard all the evidence.

Court of protection

when someone is mentally incapable of making a particular decision at a particular time, and they haven’t made a lasting power of attorney, and the decision isn’t one that can be made on an informal basis, the matter can be referred to the Court of Protection. The court may either choose to make the decision itself on the person’s behalf, or choose someone else, known as a ‘deputy’, to make the decision for them.

Culpable

at fault or guilty of something.

Damages

an award, typically of money, paid to a person or organisation for loss or injury.

Discrimination

being treated unfairly or differently because of factors, such as disability, race, religion or belief, sex or sexuality.

Disbursement

fees that are paid to organisations as required as part of legal services. For example, this could be a payment made by your lawyer to a local authority for property information when buying a house.

Domicile

the place where a person has their permanent principal home to which they return or intend to return.

Estate

a person’s property, entitlements or obligations.

Evidence

that which tends to prove or disprove something.

Executor

someone named in a will who will carry out the directions of the will.

Exempt European lawyer (EEL)

a lawyer described by a European directive.

Fee earners

employees of firms who deliver legal services.

Forfeited (to the Crown)

where someone dies intestate, or their will is invalid, their estate might be passed on to the state if relatives cannot be traced.

Fraud

intentional misrepresentation or concealment of an important fact upon which the victim is meant to rely, and in fact does rely, to the harm of the victim.

Fraudster

someone who commits fraud.

Grants of representation

this includes grants of probate (when there is a will) and grants of letters of administration (when there is no will). Often people just refer to probate even if there is no will.

Grounds (legal)

the basis or foundation of an action.

Hearing (legal)

a legal proceeding where the facts of a particular issue are looked at, and evidence is presented to help decide what the outcome should be.

Incorporated company

a type of private company with shares, but the shares cannot be traded publicly on the stock exchange. The shareholders have limited liability, which means that only the money invested in the company can be lost in case of insolvency.

Indemnity

compensation for – or protection against – loss or damages that might be given by one person to another within a contract or otherwise.

Independent person

someone free from outside control or influence to act in the way they choose.

Inheritance

parts of someone’s estate passing to someone on death.

In-house lawyer

lawyers working for organisations, such as banks or local authorities, to provide legal advice to the organisation.

Insolvent

being unable to pay debts when they are due or where liabilities exceed assets.

Instructing

authorising a lawyer to represent you. An instruction describes the type of work that you want them to do.

Integrity

acting with honesty and morality.

Intellectual property (IP)

IP refers to ideas you create and legally own as a result of owning its copyright, trademark or patent. Examples of IP can include inventions, literary and artistic works, designs, symbols, names and images.

Interest (legal)

a right, claim or privilege.

Interim proceedings

in law, interim proceedings are hearings that take place between the first hearing and the final hearing.

Intervention

when a regulator takes control of the papers and monies of a legal practice in order to protect the public.

Intestate

any person who dies without leaving a will is said to have died intestate.

Judge

a judge presides over court proceedings and hears all witnesses and evidence presented by the parties of the case, assesses the credibility and arguments of the parties, and then issues a ruling on the matter at hand, based on his or her interpretation of the law and his or her own personal judgment.

Jury

a sworn body of people in court who listen to the evidence in a trial in order to make an impartial decision (verdict). They tend to be found in criminal courts.

Lasting power of attorney

a lasting power of attorney goes one step further than an ordinary power of attorney, because it carries on, or ‘lasts’, even after you have become unable to manage your affairs, whether temporarily or permanently, or because of an illness, disability or accident. Lasting powers of attorney have now replaced enduring powers of attorney, although valid enduring powers of attorney made before 1 October 2007 can still be used.

Law firm

organisations that employ lawyers to provide legal advice and legal services.

Law Society of England and Wales

the Law Society is the organisation that represents, supports and promotes solicitors and their interests in England and Wales.

Lawyer

a member of one of the following professions, entitled to practise as such:

• the profession of solicitor, barrister or advocate of the UK
• a profession whose members are authorised to carry on legal activities by an approved regulator other than the Solicitors Regulation Authority (SRA)
• an Establishment Directive profession other than a UK profession
• a legal profession which has been approved by the SRA for the purpose of recognised bodies in England and Wales, and
• any other regulated legal profession specified by the SRA for the purpose of this definition.

Legal aid

government funding that can help people meet the costs of legal services they require, if they are eligible to receive it. It is also used to support legal assistance being provided at police stations where someone is arrested. You can find more information on legal aid at GOV.UK.

Legal disciplinary practice (LDP)

a type of law firm where solicitors work alongside other types of lawyer, such as licensed conveyancers, and a restricted number of non-lawyers.

Legal executive

a lawyer regulated by ILEX Professional Standards (IPS).

Legal Ombudsman

an independent body set up to deal with complaints of poor service about lawyers and law firms of England and Wales. See the Legal Ombudsman website for more details.

Legal professional privilege (LPP)

a protection that means information a client shares with his or her lawyer in confidence should never be revealed without the client’s consent. LPP only applies between a client and his or her solicitor or barrister. It does not apply to other legal professionals.

Legal services

services provided to clients, such as legal advice or representation in court.

Liable

when someone is legally responsible for something.

Liability

can mean something that is a hindrance or puts an individual or group at a disadvantage, or it can be something a person is responsible for.

Licensed conveyancer

a lawyer specialising in property law and in some cases other areas of law, and regulated by the Council for Licensed Conveyancers.

Limited liability partnership (LLP)

a business partnership in which some or all of the partners have limited liability in terms of their legal and financial obligations.

Litigation

the contest process before a court.

Litigant

a person involved in a lawsuit.

Litigant in person

someone who represents themselves in court proceedings.

Magistrate

non-legal volunteer who hears cases in their community and administers the law, usually in a court that deals with minor offences and holds preliminary hearings for more serious ones.

Manager (of a law firm)

the SRA Code of Conduct 2011 defines this as:

• a member of an LLP
• a director of a company
• a partner in a partnership, or
• in relation to any other body, a member of its governing body.
• Magna Carta – Latin for great charter, signed by King John in 1215, it promised the protection of rights and access to justice. Claimed as the foundation to civil liberties and starting point for human rights.

Matter

an application, information or an issue that needs to be considered by the relevant authority.

Mediation

mediation and arbitration are alternative ways in which a dispute can be resolved, without going to court.

Misconduct

sometimes used to refer to the act in which a regulated professional, for example a solicitor, breaches a principle.

Money laundering

the process of concealing the source of illegally obtained money.

Multinational

a business that operates in different countries.

Next-of-kin status

should your partner become ill or die, you may not be considered as their ‘next-of-kin’ for medical purposes unless you and your partner make a written agreement beforehand.

No win no fee

see ‘Conditional Fee Agreements (CFAs)’ above. If a claim on a CFA is unsuccessful, the solicitor receives no payment for their work under the CFA. If the claim is successful, the solicitor claims a higher than normal level of fees to reflect their risk in taking the case on a CFA.

Notary

a lawyer regulated by the Faculty Office of the Archbishop of Canterbury.

Obligation

a requirement to take a particular type of action, that may have a legal basis through a contract.

Omission

a failure to perform a particular act where there was a duty or a legal requirement for that act to be carried out.

Ordinary power of attorney

a legal way of giving someone else the power to manage your financial affairs when it is difficult for you to manage them yourself, perhaps because of a physical disability. Nobody can ‘take’ a power of attorney; it has to be ‘donated’ willingly. The donor decides who to appoint as their ‘attorney’, which will be someone they trust, such as a close relative, friend, or solicitor, and can cancel the arrangement at any time.

Outcome(s)

this often means the final decision following an application or an investigation.

Outcomes-focused regulation (OFR)

this is the SRA’s approach to regulation. It allows firms to adopt their own approach, systems and management to best enable them to deliver a good service to client’s needs and to support their business.

Out-of-court settlement

an agreement between the two sides to settle the case privately before the court makes its decision.

Paralegal

someone who supports lawyers in their work. Often paralegals have a law degree but do not have a practicing qualification.

Partner

members of a firm who equally share ownership and liability.

Partnership

two or more people working in business together.

Patent attorney/agent

a lawyer regulated by the Intellectual Property Regulation Board.

Personal representatives (PRs)

Executors or administrators. If there is more than one personal representative, they must work together to decide matters between them. Disagreements between personal representatives can cause expensive delays.

Practising certificate (PC)

a document issued to solicitors by the SRA which allows a solicitor to carry out certain legal work such as advocacy, litigation, probate and conveyancing. The SRA can impose conditions on a practising certificate, restricting the types of work that solicitors can do, and in what circumstances.

Probate

a legal permission provided by a Probate Registry for someone to deal with someone else’s estate after they die. A Probate Registry is an office where someone can be interviewed in order to be provided with a probate permission. To find your nearest registry or for more information, visit GOV.UK.

Prima facie

Latin term used to describe something that appears on the face of it to be true.

Pro bono

Latin term for professional work undertaken voluntarily and without payment or at a reduced fee.

Public interest

the overall welfare of the general public.

Pursuant

when something is related to, or comes out of, something else. For example, the powers of the SRA to regulate the legal profession stem from (‘are pursuant to’) various acts of parliament.

Recognised body/sole practitioner

according to the SRA Code of Conduct 2011, a recognised body is a body recognised by the SRA under section 9 of the Administration of Justice Act 1985. A recognised sole practitioner is a solicitor or Registered European lawyer (REL) authorised by the SRA under section 1B of the Solicitors Act 1974to practise as a sole practitioner.

Registered European lawyer (REL)

a lawyer from a European state who registers with the SRA to practise law in England and Wales.

Registered Foreign lawyer (RFL)

a lawyer from overseas who registers with the SRA to practice law in England and Wales.

Regulated individual

an individual who is authorised by, and is therefore regulated by, a regulatory body, like the SRA.

Remunerate

to pay or reward someone for something they have done or a service they have provided, such as a company paying an employee.

Revocation

when something is cancelled or taken away, such as the SRA revoking an individual’s permission to practise as a solicitor.

Rights of audience

generally a right of a lawyer to appear and conduct proceedings in court on behalf of their client.

Risk

the likelihood that a particular choice or action might lead to a loss or damage.

Roll of solicitors

a list of all admitted solicitors held by the Law Society.

Scam

any scheme that cheats people out of their property or money, or causes them damage for the benefit of others.

Sole practitioner

a lawyer who runs his or her own law firm without other partners, directors or members.

Solicitor

a lawyer who has been admitted as a solicitor by the SRA and whose name appears on the roll of solicitors.

Solicitors Regulation Authority (SRA)

the SRA regulates solicitors in England and Wales. Their purpose is to protect the public by ensuring that solicitors meet high standards, and by acting when risks are identified.

Striking-off/struck-off

an example is where a solicitor is struck from the roll

Tenancy

a contract between a tenant and their landlord. This contract can be written or verbal. In England and Wales there is no law to say that landlords have to provide a written tenancy agreement, but it is always a good idea to ask for one, even if the landlord is a friend or family member.

Third party

a term used to describe someone other than the two sides in a particular situation. For example, it can be used in motor insurance policies to describe other people besides the person who is insured and the company that insures them.

Trademark attorney

a lawyer regulated by the Intellectual Property Regulation Board.

Trainee solicitor

a person completing their training requirements in a law firm before applying to become a solicitor.

Transparent

being open and honest in a way that can be understood by others.

Tribunal

a person or group of people who collectively have authority to judge and/or determine claims or disputes.

Unadmitted

an individual who has not been admitted to the roll of solicitors.

Unfair dismissal

an employee is entitled to make a claim for unfair dismissal once they have been employed for two years, full or part-time, and they are dismissed for any of these reasons.

Unlawful

illegal or contrary to social convention.

Will

a legal document that declares a person’s wishes about the way their estate should be handled when they die.

Absolute discharge

Instead of sentencing an offender the court may make an order discharging him or her absolutely. This can be done where:

• a person is convicted on Indictment of an offence (other than an offence the sentence for which is fixed by law), if it appears to the court, having regard to the circumstances including the nature of the offence and the character of the offender, that it is not appropriate to inflict punishment it may instead of sentencing him make an order discharging him or her absolutely.
• Where a person is charged before a court of summary jurisdiction with an offence (other than an offence the sentence for which is fixed by law) and the court is satisfied that he or she committed the offence, the court, if it is of the opinion, having regard to the circumstances including the nature of the offence and the character of the offender, that it is not appropriate to inflict punishment may without proceeding to conviction make an order discharging him or her absolutely.

Accused

Refers to a person alleged to have committed a crime. The term ‘defendant’ is not used in Scotland.

Acquittal

A verdict of a jury, or a decision of a Judge, Sheriff or Justice of the Peace. It means that the accused person is not guilty.

Adjournment

A break in court proceedings. This could be for lunch, overnight or to a new date.

Advocate

A lawyer who is a member of the Faculty of Advocates, or Scottish Bar. Also known as Counsel. Different advocates act for the prosecution and the defence.

Advocate depute

An experienced prosecutor who appears in the High Court. They make decisions in serious cases and Fatal Accident Inquiries. Advocate Deputes also provide advice to Procurators Fiscal on complex or sensitive legal issues.

Allegation

A claim or accusation that has been made but not yet proved.

Appeal

A challenge to a conviction and/or sentence.

Bail

Conditions imposed upon an accused person by the Court. An accused person may be released on standard bail or bail with special conditions, for example, a condition preventing contact with a named witness.

The accused must agree to the conditions before the court will release them on bail.

Bar officer

Also known as a court officer. A person in the Sheriff Court or the Justice of the Peace Court who escorts the Sheriff or Justice of the Peace to and from court. The Bar officer provides general assistance in court. This may include calling each witness into the Courtroom and showing witnesses pieces of evidence.

Charge

The crime that the accused person is alleged to have committed.

Citation

The documentation that tells a witness or juror where and when to go to court.

Court Clerk

The person who calls the case, records the court proceedings, and gives advice on court procedure.

Commissioner

Someone who hears evidence from a vulnerable or child witness in advance of a trial. This will be a Judge, Sheriff or other suitable person. The evidence will be audio and visually recorded for use at trial.

Committal for further examination

The accused’s first appearance in court in relation to solemn proceedings. The Hearing is held in private. The accused will be granted bail or remanded in custody until trial.

Community Payback Order

A sentencing option available to court upon conviction of an accused. The order can be be made for a period between 6 months and 3 years. It imposes certain requirements on an offender.

Complaint

A statement, made by a witness to the police, accusing a person of committing a crime.

Confiscation

Money or other property taken from an accused person who benefited from criminal activity.

Conviction

When a person accused of a crime pleads guilty, or the court finds them guilty after trial, they are convicted of the offence.

Copy complaint

A document served by COPFS on an accused person, detailing the crimes alleged against them and when and where to appear in court.

Corroboration

An accused person cannot be convicted in Scotland unless there is evidence from at least two separate sources. This is called corroboration.

It must be proved by corroborated evidence that both:

• a crime known to the law of Scotland was committed
• the accused person was responsible for the crime

Counsel

Advocates who act for the prosecution or the defence. Advocates are lawyers who are members of the Faculty of Advocates or Scottish Bar.

Court familiarisation visit

A visit to the Courtroom that takes place before a trial. It can help witnesses become more familiar and comfortable with the court.

Court officer

Also know as a Bar Officer. A person in the Sheriff Court or the Justice of the Peace Court who escorts the Sheriff or Justice of the Peace to and from court. The Court Officer provides general assistance in court. This may include calling each witness into the Courtroom and showing witnesses pieces of evidence.

In the High Court, they may be known as a Macer.

Cross-examination

First a witness is questioned by the lawyer who summoned them to court (the prosecutor or the defence). Afterwards, the opposing lawyers may question (cross-examine) them.

Crown counsel

An experienced prosecutor, also known as an Advocate Depute, who appears in the High Court.

Custody

A person is in custody when they are in prison, a young offenders’ institution, or a police cell.

Defence lawyer/counsel

Legal representative for the accused.

Deferred sentence

After conviction, the court my defer a case to a date in the future before imposing a final sentence on an accused. This period is normally between three and 12 months.

Evidence

What a witness says during a trial is evidence. Evidence can also be in the form of physical items such as documents, photographs, clothes and CCTV footage.

Examination-in-chief

The questioning by the lawyer who has asked the witness to come to court (the prosecutor or the defence). This is the first set of questions the witness is asked. After examination-in-chief the opposing lawyer then has an opportunity to cross-examine the witness.

Extended sentence

A sentence that involves time in custody followed by a period of being supervised in the community. Custody means imprisonment or being detained in a young offenders’ institution.

Fatal accident inquiry

A court hearing that publicly inquires into the circumstances of certain deaths. A fatal accident inquiry must be held if the death was the result of an accident at work, or happened in legal custody, for example in prison or police custody. The findings of these inquiries can help to prevent future deaths or injuries.

First calling

The first time a case is called in court.

Fiscal

See Procurator fiscal

Floating trial

A High Court or Sheriff & Jury case where the date of the trial can vary

Forensic evidence

Scientific evidence collected from a victim, an accused person, another person or from a crime scene. Examples include fingerprints, DNA, and blood samples.

Full committal

The second appearance of an accused person in court in solemn proceedings. It takes place after the accused has been remanded in custody at the committal for further examination hearing. The hearing takes place in private. Afterwards, the court may grant bail or keep the accused on remand until the trial.

Guilty

A verdict that means it has been proved beyond reasonable doubt that the accused has committed the crime.

Hearing

Refers to a Court Hearing.

Home detention curfew

A form of early release from prison. If assessed as suitable by the Parole Board, it allows an offender to serve part of their custodial sentence out on licence in the community. Offenders are usually subject to conditions, for example a curfew condition monitored by an electronic tag.

Identification

When a victim or a witness points out the person they believe committed the crime. This can happen during the investigation stage of a case or at trial when the witness gives evidence.

Indictment

A document in solemn proceedings that sets out the charges the accused person faces.

Intestate

The term used when someone dies without making a will.

Judge

The expert in law who is in charge of all court proceedings in the High Court and ensures legal rules are followed. The Judge is responsible for sentencing an accused person if they are convicted.

Jury

Members of the public selected at random from the electoral register to listen to evidence in a criminal trial (High Court or Sheriff Court). After hearing the facts of the case, the Jury will be asked to reach a verdict. In criminal cases there are 15 jurors.

Juries are also required in civil cases in the Court of Session. There are 12 jurors in civil cases.

Justice of the peace

A lay magistrate who sits in the Justice of the Peace Court. Lay magistrates are local volunteers with some legal training. The Justice of the Peace Court deals with less serious crimes (summary cases).

King’s Counsel, or KC

A senior and experienced lawyer.

Licence

An offender may be released from prison ‘on licence’ to serve the rest of their sentence in the community. The offender will have to follow certain conditions (rules) while on licence.

Macer

Otherwise known as a Court Officer – the person in the High Court who calls in the accused and any witnesses into the Courtroom. The Macer helps keep the Courtroom in order.

Next of kin

Nearest relative to a person.

Not guilty

A verdict of the court or a jury where the Crown has not established guilt ‘beyond a reasonable doubt’. A verdict of acquittal.

Oath

A religious promise made by a witness or an accused to tell the truth in court when giving evidence.

Offender

Someone who has committed a crime.

Parole

When a long-term prisoner is released, on licence, before the end of their sentence. The offender will still be supervised by a social worker. They can be sent back to prison if they break the conditions of their licence.

Petition

In criminal cases, a petition is a legal document which sets out the first draft of charges against an accused in solemn proceedings. It starts the formal court process.

Plea

At the beginning of a criminal case, the court asks the accused if they are guilty or not guilty. The answer they give to the court is called the plea.

Police bail

When a person is in police custody accused of a crime they may be released if they sign a form known as an undertaking. Signing the form means that they agree to certain conditions imposed by the police, such as not committing further crimes. They also agree to come to court on a given date and time.

Post-mortem examination

Examination of a body to establish the cause of death.

Precognition

An interview of a witness by a procurator fiscal or defence lawyer. It helps them find out more about a crime and prepare for a court case.

Procurator fiscal

Also known as the PF or the Fiscal. Investigating agencies, such as the police, report crimes to the procurator fiscal. The procurator fiscal then makes a decision about what action to take. This includes whether to prosecute someone. Fiscals are legally qualified.

The Fiscal also deals with reports of sudden or suspicious deaths and allegations of criminal conduct on the part of police officers.

Production

An item used as evidence in a criminal trial and shown in court.

Queen’s Counsel, or QC

A senior and experienced lawyer. This term has been replaced by King’s Counsel, or KC.

Remanded

When an accused is refused bail and held in prison awaiting trial.

Remote site

A location where a witness can give evidence by video link to a court.

Scottish Children’s Reporter Administration (SCRA)

The national organisation for Children’s Reporters. SCRA focusses on children and young people who are most at risk. Children’s Reporters make decisions about the need to refer a child or young person to a Children’s Hearing.

Sentence

A decision by a Judge, Sheriff or Justice of the Peace on the outcome of a case. The sentence is given after an accused is found guilty of a charge at trial or admits guilt to a charge.

Sentence discount

Where a Sheriff or Judge applies a reduction in sentence following an early plea by the accused.

Sheriff

The name for a judge in the Sheriff Court.

Sheriff and jury

Cases that are heard before a Sheriff (judge) and Jury in the sheriff court. The majority of cases in Scotland are dealt with in the sheriff court.

Solicitor

A lawyer who is a member of the Law Society of Scotland.

Solemn case

A serious criminal case that is heard before a Judge and Jury of 15 people in the High Court, or a Sheriff and Jury of 15 people in the Sheriff Court.

Soul and conscience letter

A medical certificate or letter from a doctor explaining that a person, such as a witness, is too unwell to attend court.

Special measures

Different ways to help support vulnerable witnesses when giving evidence in court. Special measures include giving evidence from behind a screen in the Courtroom, or by a television link, or having a support person in court. All children receive special measures when giving evidence.

Statement

A written record or an audio recording of what a witness has said to the police about a criminal allegation.

Summary case

Less serious criminal cases that are heard before a Sheriff or Justice of the Peace. No jury is present.

Supervision

The local authority criminal justice services supervise prisoners released on licence.

Support person

A person who can stay with a witness when they come to court.

Trial

The court hearing that establishes the facts in a case by the leading of evidence. Evidence is led by the prosecution and the defence (if the defence chooses to lead evidence on behalf of the accused). A trial is heard before a Justice of the Peace or a Sheriff in summary cases, or a Sheriff or Judge and 15 Jurors in solemn cases.

Undertaking

When a person is in police custody accused of a crime they may be released if they sign a form known as an undertaking. Signing the form means that they agree to certain conditions imposed by the police, such as not committing further crimes. They also agree to come to court on a given date and time.

Verdict

The decision reached at the end of a trial by a Judge, Sheriff, Justice of the Peace or Jury – guilty or not guilty.

Victim impact statement

In solemn procedure, victims of certain crimes can provide the court with a written statement that explains how a crime has affected them. The Judge or Sheriff will take into account different factors, including the victim impact statement, when they sentence the offender.

Warrant

A document granted by the court, giving police officers the authority to arrest someone. For example, a warrant may be issued for the arrest of an accused person if they have failed to attend court.

Witness Service

People at the court who provide support and advice to witnesses and their families. The service is provided by Victim Support Scotland.

Accounting & Bookkeeping Glossary

Accountant

An accountant prepares the accounts and can submit them to HMRC and Companies House. They should be qualified and have relevant experience.

Accounting

Process of keeping the business’s financial records. Read our accounting basis section.

Accounting Ratio

Several accounting ratios help show how well a company is performing. An example is the current ratio, which shows how solvent the business is short term. Current assets divided by current liabilities = current Ratio

Accounting Payable

Money owed to a supplier from bills or invoices that have been received. An Accounts receivable report shows all amounts owed and how overdue they are.

Accounts Receivable

Money owed by a customer for a sales invoice. The accounts receivable report will show the total amount owing to customers.

Accounting Equation

The main accounting equation is Assets – Liabilities = Equity. Other accounting equations help show how well a company is performing. An example is the current ratio, which shows how solvent the business is short term. Current assets divided by current liabilities = current Ratio.

Accrual Accounting

A method where revenues and expenses are recognised when they are earned or incurred, regardless of when the cash is exchanged.

Accruals

Accruals are revenues or expenses recognised when the transaction happens. The accrual account is part of the balance sheet.

Aged Creditors

See Bookkeeping term – Accounts Payable definition

Aged Debtors

See Bookkeeping Term – Accounts Receivable definition

Amortisation

The process of spreading the cost of an intangible asset over its useful life (similar to depreciation for tangible assets).

Assets

Items that a business owns that have a value. These can be fixed assets, such as computers, equipment and buildings or intangible assets such as patents, copyrights and trademarks.

Bad Debts

Bad debts are money that a business does not expect to receive. A bad debt is written off using a journal.

Balance Sheet

A financial statement that shows a snapshot of the company’s financial position. It shows all the assets, liabilities and equity.

Bank

Part of the balance sheet (current assets) report shows how much money is in the bank.

Bank Reconciliation

The process of comparing the bank statement with the accounting system to identify and resolve differences.

Bookkepeeing

Bookkeeping is the process of recording and organising a business’s financial transactions. In simpler terms, it’s about tracking the money that comes in and goes out.

Bookkeeping Cycle

The process of steps from entering a transaction to preparing the financial statements, including documents, journals, ledgers, trial balances, adjustments, closing accounts, and preparing final accounts.

Budget

A financial plan that estimates future revenue and expenses over a specific period.

Capital

The wealth of the business, whether in money or property, owned or employed in the business. It can be found on the balance sheet.

Capital Allowance

A small business can claim capital allowances on items purchased for long-term use to help reduce its tax liability.

Cash Basis

Records income and expenses when money goes into or leaves a business.

Cash flow

The movement of money in and out of the business. A cash flow forecast shows future income and expenditure over a period of time. A cash flow statement shows the changes in cash for an accounting period.

Chart of Accounts

All accounts within an accounting software package include Assets, liabilities, capital, income, cost of sales, and expenses.

Contra Entry

A contra entry is a bookkeeping transaction that transfers funds between two related accounts.

Corporation Tax

In the UK, tax is paid on the profits of the company.

Cost of Goods Sold

The direct costs involved in producing the goods or services sold by a company. It is shown on the Profit and Loss account below income.

Credit

An accounting entry that increases liabilities, equity, or revenue accounts and decreases asset or expense accounts.

Credit Note

If a refund is due to a customer, a credit note will be added to the accounts to reduce the sales invoice.

Creditors

In the accounting and business world, a debtor is someone who owes money to another person or entity.

Debit

Double-entry accounts consist of debits and credits. A debit is on the left side of the accounts. An example is on the cash account: if money is received, it is recorded on the left side of the cash account.

Debtors

In the accounting and business world, a debtor is simply someone who owes money to another person or entity.

Deposit

Money that is paid into a bank or building society. It can also be an initial payment made for goods paid in instalments.

Depreciation

Equipment (assets) purchased for use in the business is reduced in value over time. For example, a computer purchased for £300 will reduce in value over three years; under straight line depreciation,the depreciation will be £100 per year.

Dividends

A percentage of profits is paid to shareholders. An example is a business that made a profit of £10,000 and paid two shareholders £5000 each as they both hold 50% of the shares.

Double Entry

Double-entry bookkeeping is an accounting method where every financial transaction is recorded as two entries: a debit and a credit, ensuring the accounting equation (Assets = Liabilities + Equity) remains balanced.

Drawings

If you are a sole trader or a partnership, withdrawing money from the business is known as drawings.

Equity

Equity is the bookkeeping term for an ownership interest in a business. It can include stockholders’ equity or owners’ equity.

Expense

An expense to the business is money paid for items or services. The Profit and Loss account shows income and expenses.

Export

Export refers to the sale and transportation of goods or services produced in one country to a buyer in another. Or exporting transactions from a program or accounting software.

Financial Statements

The financial statements are the Profit and Loss statement, Balance Sheet, and Cash Flow statement. Company owners and lenders use these statements to make financial decisions about the business.

General Ledger

The master record contains all the accounts used to summarise a company’s transactions.

Goodwill

Goodwill is an intangible asset on the Balance Sheet. It is usually calculated when a business is sold and will include costs for the brand, customers and business value.

Goods

Products that are purchased and sold within a business.

Gross Profit

Total Sales less the cost of goods sold equals gross profit. The Cost of goods sold includes the cost of the goods and all costs of making them.

Import

Import can mean bringing transactions into an accounting package: for example, downloading your bank transactions from your bank and importing them into accounting software. Import can also mean bringing goods into the country.

Income

All revenue for the business is shown at the top of the profit and loss account.

Income Statement

A financial statement that reports a company’s revenues, expenses, and net income (profit/loss) over a specific period.

Indirect costs

Indirect costs are expenses not directly tied to the production of a specific good or service but are necessary for the overall operation of a business, such as rent, utilities, and administrative salaries.

Invoice

An invoice is a document issued by a seller to a buyer that details a transaction and requests payment for goods or services provided.

Inventory

The raw materials used to produce goods, as well as the goods that are available for sale.

Intangible Assets

An intangible asset is a non-physical asset with value to a business, such as patents, trademarks, or goodwill.

Journal

A journal is a chronological record of a business’s financial transactions, showing the date, accounts affected, and amounts of each transaction.

Ledger

If the income exceeds the outgoings, a loss has been made. A loss can also be made if you sell a fixed asset for less than its value.

Liabilities

These are things that the business owes to other organisations and people; they can include loans, overdrafts and money owed to suppliers.

Limited Company

It is formed in the UK and is limited by the shares. Any legal action is taken against the company rather than the individuals. Limited company details are held on Companies House.

Long term Liabilities

Each transaction of revenue, expenses, gains and losses is posted to a code in computerised accounts, and each code is a nominal account. All the nominal codes are held in a chart of accounts.

Loss

If the income is less than the outgoings, then a loss has been made. A loss can also be made if you sell a fixed asset for less than its value.

Margin

Margin is the difference between the selling price of goods and the cost. For example, goods are purchased for £80 and sold for £100; the margin is £20.

Markup

Markup is the difference between the cost and the selling price.

Net Assets

The total assets less liabilities. The figure equals equity; if it is a sole partnership, it is the owner’s equity, and if a corporation, it is the stockholder’s equity.

Net Book Value

NBV is the net value of assets. Assets are purchased at a price, and depreciation is deducted over a period; the purchase price less depreciation equals the net book value.

Net Profit

Gross profit less expenses equals your net profit. Revenue minus cost of goods equals gross profit, minus expenses equals net profit.

Nominal Accounts

Are part of the general ledger, each type of income, expense, asset, liability and equity will have its own nominal code.

Opening Balances

To transfer your accounts from one system to another, you will need to post the closing balances from one to the opening balances of the other. It can also be the case if you are switching from paper-based or Excel spreadsheets.

Operating Expenses

Costs incurred in the normal course of business operations, such as rent, salaries, and utilities.

Overdraft

If your bank balance is negative, you have gone overdrawn. Overdrafts typically carry fees; it is best to agree on terms before using one.

PAYE

Pay as You Earn is the UK payroll that deducts tax and NI each time you get paid.

Payroll

The process of calculating and disbursing employee wages and salaries, including withholdings for taxes and benefits.

Petty Cash

A small amount of cash is kept to purchase sundry items. For a larger business, procedures need to be in place for issuing money.

Prepayments

If you pay for something in advance, you are prepaying for it and should only post the amount that relates to the period. An example is an insurance policy purchased for a year for £100, but only £30 relates to this financial year; the remaining balance of £70 is transferred to the prepayment account.

Profit

If the revenue of the business is more than the cost of sales and expenses, a profit will have been made.

Profit and Loss

A financial statement which shows the revenue and expenditure over a period.

Purchase Ledger

Records all of the purchases and expenses. It will show a list of all the outstanding invoices and how much you owe. An account is set up for each supplier.

Receipt

A document showing that money has been received for the sale of goods or services.

Reconcile

To reconcile an account, you need to provide evidence that the account balance is correct.

Record Keeping

In bookkeeping and accounting, it is important to keep your information up to date. Records need to be kept for a set period and organised in an easy-to-use system.

Recurring

A transaction that is completed on a weekly, monthly or annual basis for the same amount is called a recurring transaction. Most accounting packages will set up a template and automatically produce the document.

Reducing Balance

A method where an asset is reduced by depreciation each year. Reducing balance means that you reduce the balance more in the early years. An example is an asset of £20,000 is reduced by 40% (£8,000), leaving a value of £12,000 in the second year it is 40% of the remaining value of £12,000.

Remittance

A sum of money that you send to a customer for goods or services; remittance advice is a document that you submit with it.

Retained Earnings

Retained earnings are money kept in the business rather than paid to the shareholders as a dividend.

Revenue

The amount of money that a business receives in any period and is shown at the top of the profit and loss account report.

Sales Ledger

A record of all the sales, if the money has been received and any amounts that are still outstanding. Each customer has an account with all the details recorded.

Self Employed

Is someone who runs their own business and is responsible for its success or failure. They are not paid under the PAYE system but instead registered for self-assessment tax.

Shareholders

Are the people or businesses that have invested in the company. The shareholder funds are calculated by assets less liabilities. Shareholders can take money out of the company by dividends.

Single Entry

Transactions are only recorded once in the ledger. For most, this system is too simple and double entry is required.

Statement

A document that sets out transactions between debits and credits. There are bank, supplier and customer statements that show transactions for a given period.

Straight Line Basis

The straight-line basis is an accounting method used to depreciate an asset evenly over its useful life, allocating the same expense amount to each period.

Subsistence

Are allowances provided to employees to cover the costs of food, drinks, and sometimes overnight accommodation when they travel on company business.

Tangible Assets

A tangible asset is a physical asset wth long-term value or use for a business, such as equipment, buildings, or inventory.

Transfer

The movement from one account to another or a change in ownership of an asset.

Trial Balance

An accounting report which lists all the debits and credits of all the general ledger accounts. It is typically run by an accountant at the year-end to review all the accounts.

Turnover

The value of goods or services sold in a period.

VAT

Value Added Tax – If you are VAT-registered, you will need to add VAT to your sales invoices and reclaim it on purchases. There are several VAT schemes, and it is worth finding the best one to suit the business.

Work in Progress

The value of work that has not yet been completed. For example, a manufacturing company at the period end would calculate the amount of unfinished work.

Write Off

Refers to debt from a customer that you do not expect to collect; the bad debt needs to be written off from the sales ledger.

Year-End

The end of a financial year, accounts will need to be produced at the end of each year.

Trade Marks Glossary

Absolute grounds

These are grounds for objecting to a trade mark arising from the trade mark itself.

Acquiescence

Describes a period of 5 years where the owner of an earlier right has known about the use of a registered trade Mark by another but taken no action to prevent that use. This usually results in a loss of certain rights associated with ownership of a registered trade mark.

Address for service

An address within the UK, European Economic Area (EEA) or Channel Islands which must be filed by all parties to proceedings and to which all correspondence relating to proceedings will be sent by the Tribunal.

Appointed person

A senior independent intellectual property lawyer appointed to hear appeals from decisions of the Intellectual Property Office (IPO). The Appointed person offers a cost effective alternative to appealing to the courts.

Bad faith

Conduct before the IPO or in relation to a trade mark that indicates behaviour or practices that is questionable. It covers obvious conduct like dishonesty but can be more subtle and cover conduct that might be generally considered sharp practice.

Bona fide

This relates to good faith and implies that in certain dealings with trade marks a party acts without any knowledge or information which is contrary to or undermines their position without fraud, collusion or participation in wrongdoing.

Case Management Conference (CMC)

In accordance with rule 62(4) the Tribunal may, at any time, direct that the parties attend a CMC. This will be conducted by a Hearing Officer and will, as a general rule, result in directions being given in respect of the timetable and future conduct of the proceedings.

Cooling-off period

A period allowed in opposition proceedings before the Tribunal, within which parties may negotiate a settlement.

Counter statement

The purpose of the counterstatement is to agree or disagree with any of the grounds set out by the other side in its statement.

Earlier right

This is a term used to describe a pre-existing right that may form a barrier to subsequent trade mark application.

Earlier trade mark

This is a term used to describe a pre-existing trade mark which may form a barrier to a subsequent trade mark application. These trademarks may be Domestic, Community trademarks and/or International trade marks.

EEA

EEA, a free-trade zone created in 1994, composed of the states of the European Union together with Iceland, Norway, and Liechtenstein.

European Union Intellectual Property Office (EUIPO) (formally called Office for Harmonisation of the Internal Market (OHIM))

This is the EUIPO and is responsible for the registration of Community trademarks and Community designs.

Evidence

Information provided in a Witness statement to prove the facts of a case.

Hearing

An open attendance before a Hearing Officer at the Tribunal, which is normally open to the public.

Hearing Officer

A senior official of the Tribunal responsible for conducting hearings and making decisions on proceedings pending before the IPO.

Inter Partes [Between the parties]

Is used to refer to legal proceedings of an adversarial nature between two or more parties, in opposition proceedings between the application for registration and the opponent.

Invalidity/invalid

A decision that a registered trade mark should not have been granted due to grounds that subsisted at the time of the grant of the application. Once declared invalid, such a trade mark will be deemed never to have been registered.

Joint hearing

A hearing, on preliminary matters, prior to the parties being in formal proceedings. (Once parties are in formal proceedings this becomes known as a Procedural Hearing).

European Union Intellectual Property Office (EUIPO) (formally called Office for Harmonisation of the Internal Market (OHIM))

This is the EUIPO and is responsible for the registration of Community trademarks and Community designs.

Opponent

The party objecting to an applicant’s application for a trade mark.

Opposition

The procedure where a third party may formally object to an application for registration of a trade mark.

Notification date

The date on which the Tribunal serves proceedings on the other side.

Passing off

A cause of action that seeks to prevent unregistered trademarks with a sufficient goodwill from being misappropriated by a third party.

Pleadings

Is an alternative, technical term for statements and counter-statements. Pleadings serve a simple function by identifying the issues between the parties which may later be the subject of evidence.

Preliminary view

Issued by the Tribunal, to the parties, to indicate its view on a particular matter, for example, refusal of an extension of time or a view that consolidation is appropriate. A period is given for the parties to contest such a decision.

Procedural hearing

IA hearing held in respect of preliminary matters between two or more parties which need to be resolved prior to the substantive hearing.

Register

The record kept by the IPO of all registered trademarks and registered transactions.

Register of Trade Mark Attorneys

The official register of professionals entitled to use the designation trade mark attorney, entry to which is subject to passing rigorous examinations in trade mark law and practice and associated intellectual property rights.

Registrar

Another term to describe the Chief Executive of the IPO.

Relative grounds

Grounds for objecting to a trade mark application or applying for a declaration of invalidity due to the existence of earlier trademarks or rights.

Revocation/revoke

An action to remove a registered trade mark for certain reasons that have arisen since the trade mark was registered and include that it has not been used for a period of 5 years since its registration and that it is misleading or become the common name for the goods or services for which it is registered.

Skeleton argument

A document prepared by a party (or its legal representative) that sets out the basis of the party’s argument. These should always be copied to all other parties to the proceedings and should be filed no later than 2pm two days prior to the hearing date.

Specification

Another name for the classification of goods or services covered by a trade mark.

Substantive hearing

The main hearing to determine the outcome of proceedings.

Submissions

Written arguments by a party to support its case or comment on the other side’s evidence. Submissions are not facts and if a party wishes to rely on facts they must be presented as evidence.

Surrender

A voluntary step the owner of a registered trade mark may take to either remove his trade mark registration in full or in relation to certain goods or services in the specification. Often occurs when a registered trade mark is threatened with revocation or invalidation.

Trade Mark Attorney

A professional intellectual property practitioner specialising in trade mark law and practice who is entered on the Register of Trade Mark Attorneys.

Tribunal

Refers to the Registrar, Hearing Officers and the Tribunal’s other officers.

Unregistered trade mark

A trade mark which denotes the goods or services of a particular undertaking but is not registered. Such unregistered trademarks may be used to prevent others from using the same or confusing trademarks under passing off.

WIPO

The World Intellectual Property Organisation (WIPO) based in Geneva which administers the Madrid Protocol and Madrid Agreement for the international registration of trade marks.

Witness statement

This is a document used to provide the evidence of a party in relation to proceedings before the IPO. It does not need to be authenticated by a