Dictionary of Law
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

limited liability :: legal definition


Limited liability - n. the maximum amount a person participating in a business can lose or be charged in case of claims against the company or its bankruptcy. A stockholder in a corporation can only lose his/her investment, and a limited partner can only lose his/her investment, but a general partner can be responsible for all the debts of the partnership. Parties to a contract can limit the amount each might owe the other, but cannot contract away the rights of a third party to make a claim.

See also: corporation limited partnership liquidated damages partnership shareholder and Related Law Terms ↓


Related Law Terms

abstract of judgment :: n. a written summary of a judgment which states ho ... aying the debt. See also: levy lien
amend :: v. to alter or change by adding, subtracting, or s ... mended pleading statute stipulation
anticipatory breach :: n. when a party to a contract repudiates (reneges ... perform. See also: breach contract
bilateral contract :: n. an agreement in which the parties exchange prom ... also: contract unilateral contract
clean hands doctrine :: n. a rule of law that a person coming to court wit ... ices. See also: affirmative defense
commercial frustration :: n. an unforeseen uncontrollable event which occurs ... rustration of purpose impossibility
commingling :: n. the act of mixing the funds belonging to one pa ... rust accounts for funds of another.
condition precedent :: n. 1) in a contract, an event which must take plac ... o the property. See also: condition
consideration :: n. 1) payment or money. 2) a vital element in the ... t of a promise). See also: contract
contract :: 1) n. an agreement with specific terms between two ... n oral contract unilateral contract
contribution :: n. 1) donation to a charity or political campaign. ... f $3,000 from each of his partners.
contributory negligence :: n. a doctrine of common law that if a person was i ... : comparative negligence negligence
corporation :: n. an organization formed with state governmental ... ation public corporation securities
court costs :: n. fees for expenses that the courts pass on to at ... ee also: cost bill prevailing party
covenant :: 1) n. a promise in a written contract or a deed of ... o compete deed restrictive covenant
declaratory judgment :: n. a judgment of a court which determines the righ ... ys it. See also: declaratory relief
forfeit :: v. to lose property or rights involuntarily as a p ... drunk driving. See also: forfeiture
general partner :: n. 1) usually one of the owners and operators of a ... ted partnership partner partnership
hearsay rule :: n. the basic rule that testimony or documents whic ... interest dying declaration hearsay
implied covenant of good faith and fair dealing :: n. a general assumption of the law of contracts, t ... -long employment. See also: implied
impute :: v. 1) to attach to a person responsibility (and th ... also. See also: vicarious liability
informed consent :: n. agreement to do something or to allow something ... . See also: consent Miranda warning
injunction :: n. a writ (order) issued by a court ordering someo ... t. See also: injunctive relief writ
last clear chance :: n. a rule of law in determining responsibility for ... contributory negligence negligence
limited partnership :: n. a special type of partnership which is very com ... mited liability partner partnership
liquidated damages :: n. an amount of money agreed upon by both parties ... airness. See also: contract damages
mistake :: n. 1) an error in comprehending facts, meaning of ... time. See also: contract rescission
novation :: n. agreement of parties to a contract to substitut ... . See also: accord and satisfaction
oral contract :: n. an agreement made with spoken words and either ... itten. See also: agreement contract
partner :: n. 1) one of the co-owners and investors in a "par ... ner limited partnership partnership
partnership :: n. a business enterprise entered into for profit w ... partnership partner silent partner
party :: n. 1) one of the participants in a lawsuit or othe ... y real party in interest respondent
party of the first part :: n. reference in a written contract to identify one ... ies another party to the agreement.
promise :: 1) n. a firm agreement to perform an act, refrain ... so: consideration contract covenant
prospectus :: n. a detailed statement by a corporation required ... rporation limited partnership stock
reformation :: n. the correction or change of an existing documen ... neral partner sues for reformation.
rescind :: v. to cancel a contract, putting the parties back ... celling party. See also: rescission
self-dealing :: n. in the stock market, using secret "inside" info ... ederal Securities and Exchange Act.
severable contract :: n. an agreement which is made up of several separa ... e also: breach of contract contract
silent partner :: n. a non-legal term for an investor who puts money ... partner limited partnership partner
specific performance :: n. the right of a party to a contract to demand th ... artwork. See also: contract prayer
state of domicile :: n. the state in which a person has his/her permane ... orated. See also: domicile resident
statute of limitations :: n. a law which sets the maximum period which one c ... ies. See also: demurrer laches toll
subpena duces tecum :: : (suh-pea-nah dooh-chess-take-uhm or dooh-kess-ta ... ng a court order. See also: witness
third party :: n. a person who is not a party to a contract or a ... beneficiary third-party beneficiary
third-party beneficiary :: n. a person who is not a party to a contract but h ... tract as a third-party beneficiary.
unconscionable :: adj. referring to a contract or bargain which is s ... ee also: adhesion contract contract
winding up :: n. liquidating the assets of a corporation or part ... ration cy pres doctrine partnership
wrongful termination :: n. a right of an employee to sue his/her employer ... ing an employee's grounds for suit.

Popular Law Searches

legal definition ministerial act :: n. an act, particularly of a governmental employee ... exercising any individual judgment.
chancery legal definition :: n. a court that can order acts performed. Today ch ... ts in most states. See also: equity
testamentary disposition legal definition :: n. how the terms of a will divide the testator's ( ... named beneficiaries. See also: will
contract of sufferance :: n. a "hold-over" tenancy after a lease has expired ... y tenancy at will unlawful detainer
forthwith legal definition :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
forthwith definition legal :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
what is to wit in a legal contract :: prep. that is to say. Example: "the passengers in ... tty Bumgartner and Sherry Younger."
mirror wills legal definition :: n. the wills of a husband and wife which are ident ... d each names the other as executor.
clean hands doctrine latin :: n. a rule of law that a person coming to court wit ... ices. See also: affirmative defense
sine qua non only relates to contract law :: (see-nay kwah nahn) prep. Latin for "without which ... qua non of the injury to Playmate.

Other Law Terms - L

labor and materials :: (time and materials) n. what some builders or repa ... track of actual labor hours worked.
laches :: n. the legal doctrine that a legal right or claim ... , breach of contract, fraud, etc.).
land :: n. real property, real estate (and all that grows ... See also: real estate real property
landlady :: n. female of landlord or owner of real property fr ... rents or leases. See also: landlord
landlocked :: adj. referring to a parcel of real property which ... which it was created (carved out).
landlord :: n. a person who owns real property and rents or le ... so: lease lessee lessor rent tenant
landlord and tenant :: n. the name for the area of law concerning renting ... ord lease lessee lessor rent tenant
landlord's lien :: n. the right of a landlord to sell abandoned perso ... to the ex-tenant and a public sale.
lapse :: 1) v. to fail to occur, particularly a gift made i ... eficiary devisee legatee trust will
larceny :: n. the crime of taking the goods of another person ... : grand larceny petty larceny theft
last antecedent rule :: n. a doctrine of interpretation (construction) of ... o trucks and not boats or tractors.
last clear chance :: n. a rule of law in determining responsibility for ... contributory negligence negligence
last will and testament :: n. a fancy and redundant way of saying "will." Law ... writing another one. See also: will
latent defect :: n. a hidden flaw, weakness or imperfection in an a ... warranty product liability warranty
lateral support :: n. the right of a land- owner to assurance that hi ... support problems are less dramatic.
law :: n. 1) any system of regulations to govern the cond ... um maritime law natural law statute
law and motion calendar :: n. a court calendar in which only motions and spec ... special legal arguments are heard.
law book :: n. any of numerous volumes dealing with law, inclu ... : common law law Shepardize statute
law of admiralty :: n. statutes, customs and treaties dealing with act ... w. See also: Jones Act maritime law
law of the case :: n. once a judge has decided a legal question durin ... he ruling is the "law of the case."