LEGAL CUSTODY: In a divorce, one of two types of child custody. A parent who has legal custody has the right to be involved in all the decision making typically involved with being a parent, such as religious upbringing, education and medical decisions. Legal custody can be either sole or joint. Compare with physical custody.
LEGATEE: Also known as a beneficiary. Person named in a will to receive property.
LEMON LAWS: Laws that require manufacturers to repair defective cars. If the repairs are not made within a reasonable amount of time and number of attempts, the manufacturer is required to refund the purchase price, less a reasonable amount for the use of the car.
LESSER INCLUDED OFFENSES: Charges that contain elements of the most serious charge against a defendant. For instance, a person charged with first-degree murder (which requires premeditation) could be convicted of second-degree murder (a killing done without premeditation) or manslaughter (a killing done in the heat of passion)
LIABILITY: Any legal responsibility, duty or obligation.
LIBEL: Defamatory (false and injurious) written statements or materials, including movies or photographs.
LIEN: A claim against someone's property. A lien is instituted in order to secure payment from the property owner in the event that the property is sold. A mortgage is a common lien.
LIMITED LIABILITY COMPANY: A business structure that is a hybrid of a partnership and a corporation. Its owners are shielded from personal liability and all profits and losses pass directly to the owners without taxation of the entity itself.
LIMITED PARTNER: One of two kinds of partners in a limited partnership. Is personally liable for the debts of the partnership only to the extent of his or her investment in it and has little to no voice in its management.
LIMITED PARTNERSHIP: A partnership with two kinds of partners: limited partners, who provide financial backing and have little role in management and no personal liability, and general partners, who are responsible for managing the entity and have unlimited personal liability for its debts.
LIQUIDATED DAMAGES: The amount of money specified in a contract to be awarded in the event that the agreement is violated.
LIVING TRUST: A trust created during the maker's lifetime. Some living trusts are set up so that they can be changed during the maker's lifetime. These are called "revocable." Others, known as "irrevocable," are set up so that they can't be touched.
LIVING WILL: Also known as a medical directive or advance directive. A written document that states a person's wishes regarding life-support or other medical treatment in certain circumstances, usually when death is imminent.