CAPITAL GAIN: The profit made from the sale of a capital asset, such as real estate, a house, jewelry or stocks and bonds.
CAPITAL LOSS: The loss that results from the sale of a capital asset, such as real estate, a house, jewelry or stocks and bonds. Also the loss that results from an unpaid, non-business (personal) loan.
CASE LAW: Also known as common law. The law created by judges when deciding individual disputes or cases.
CASE OF FIRST IMPRESSION: A novel legal question that comes before a court.
CAVEAT EMPTOR: Latin for "buyer beware." This rule generally applies to all sales between individuals. It gives the buyer full responsibility for determining the quality of the goods in question. The seller generally has no duty to offer warranties or to disclose defects in the goods.
CERTIORARI: Latin that means "to be informed of." Refers to the order a court issues so that it can review the decision and proceedings in a lower court and determine whether there were any irregularities. When such an order is made, it is said that the court has granted certiorari.
CHAPTER 7 BANKRUPTCY: A type of bankruptcy in which a person's assets are liquidated (collected and sold) and the proceeds are distributed to the creditors.
CHAPTER 13 BANKRUPTCY: A type of bankruptcy in which a person keeps his assets and pays creditors according to an approved plan.
CHALLENGE FOR CAUSE: Ask that a potential juror be rejected if it is revealed that for some reason he or she is unable or unwilling to set aside preconceptions and pay attention only to the evidence.
CHANGE OF VENUE: A change in the location of a trial, usually granted to avoid prejudice against one of the parties.
CHARGING LIEN: Entitles a lawyer who has sued someone on a client's behalf the right to be paid from the proceeds of the lawsuit, if there are any, before the client receives those proceeds.
CHILD ABUSE: Defined by state statutes. Usually occurs when a parent purposefully harms a child.
CHILD NEGLECT: Defined by state statutes. Usually arises from a parent's passive indifference to a child's well-being, such as failing to feed a child or leaving a child alone for an extended time.
CHILDREN'S TRUST: A trust set up as part of a will or outside of a will to provide funds for a child.
CIRCUMSTANTIAL EVIDENCE: Indirect evidence that implies something occurred but doesn't directly prove it. The fact that a person was overheard to say he was going to kill someone is only circumstantial evidence that he committed the murder.
CLASS ACTION SUIT: A lawsuit in which one or more parties file a complaint on behalf of themselves and all other people who are "similarly situated" (suffering from the same problem). Often used when a large number of people have comparable claims.
CLEAR AND CONVINCING EVIDENCE: The level of proof sometimes required in a civil case for the plaintiff to prevail. Is more than a preponderance of the evidence but less than beyond a reasonable doubt.
CLOSING: In a real estate transaction, this is the final exchange in which the deed is delivered to the buyer, the title is transferred, and the agreed-on costs are paid.
CODICIL: A supplement to a will.
COHABITATION AGREEMENT: Also called a living-together contract. A document that spells out the terms of a relationship and often addresses financial issues and how property will be divided if the relationship ends.
COLLATERAL: An asset that a borrower agrees to give up if he or she fails to repay a loan.
COLLECTIVE BARGAINING AGREEMENT: The contract that spells out the terms of employment between a labor union and an employer.
COMITY: A code of etiquette that governs the interactions of courts in different states, localities and foreign countries. Courts generally agree to defer scheduling a trial if the same issues are being tried in a court in another jurisdiction. In addition, courts in this country agree to recognize and enforce the valid legal contracts and court orders of other countries.
COMMON LAW: Also known as case law. The law created by judges when deciding individual disputes or cases.
COMMON-LAW MARRIAGE: In some states, a couple is considered married if they meet certain requirements, such as living together as husband and wife for a specific length of time. Such a couple has all the rights and obligations of a traditionally married couple.
COMMUNITY PROPERTY: Property acquired by a couple during their marriage. Refers to the system in some states for dividing the couple's property in a divorce or upon the death of one spouse. In this system, everything a husband and wife acquire once they are married is owned equally (fifty-fifty) by both of them, regardless of who provided the money to purchase the asset or whose name the asset is held in.
COMPARATIVE NEGLIGENCE: Also called comparative fault. A system that allows a party to recover some portion of the damages caused by another party's negligence even if the original person was also partially negligent and responsible for causing the injury. Not all states follow this system.
COMPENSATORY DAMAGES: Money awarded to reimburse actual costs, such as medical bills and lost wages. Also awarded for things that are harder to measure, such as pain and suffering.
COMPLAINT: In a civil action, the document that initiates a lawsuit. The complaint outlines the alleged facts of the case and the basis for which a legal remedy is sought. In a criminal action, a complaint is the preliminary charge filed by the complaining party, usually with the police or a court.
CONCURRENT SENTENCES: Criminal sentences that can be served at the same time rather than one after the other.
CONDITIONAL DISMISSAL:A program in which a defendant essentially is put on probation for a set period of time and his or her case does not go to trial during that time. If the defendant meets the conditions set by the court, then the charge will be dismissed.
CONFLICT OF INTEREST: Refers to a situation when someone, such as a lawyer or public official, has competing professional or personal obligations or personal or financial interests that would make it difficult to fulfill his duties fairly.
CONSECUTIVE SENTENCES: Criminal sentences that must be served one after the other rather than at the same time.
CONSERVATOR: Person appointed to manage the property and finances of another. Sometimes called a guardian.
CONSIDERATION: Something of value that is given in exchange for getting something from another person.
CONTEMPT OF COURT: An action that interferes with a judge's ability to administer justice or that insults the dignity of the court. Disrespectful comments to the judge or a failure to heed a judge's orders could be considered contempt of court. A person found in contempt of court can face financial sanctions and, in some cases, jail time.
CONTINGENCY FEE: Also called a contingent fee. A fee arrangement in which the lawyer is paid out of any damages that are awarded. Typically, the lawyer gets between one-fourth and one-third. If no damages are awarded, there is no fee.
CONTRACT: An agreement between two or more parties in which an offer is made and accepted, and each party benefits. The agreement can be formal, informal, written, oral or just plain understood. Some contracts are required to be in writing in order to be enforced.
CONTRIBUTORY NEGLIGENCE: Prevents a party from recovering for damages if he or she contributed in any way to the injury. Not all states follow this system.
COPYRIGHT: A person's right to prevent others from copying works that he or she has written, authored or otherwise created.
CORPORATION: An independent entity created to conduct a business. It is owned by shareholders.
CREDITOR: A person (or institution) to whom money is owed.
CROSS EXAMINATION: The questioning of an opposing party's witness about matters brought up during direct examination.
CUSTODIAN: Under the Uniform Transfers to Minors Act, the person appointed to manage and dispense funds for a child without constricting court supervision and accounting requirements.