Acceptance
the assent to a definite offer

Age of majority
the age at which a person can assume a legal obligation—in Alberta, 18 years

Appraiser
a person who estimates the value of real property

Asset
anything owned that has monetary value

Assign
to transfer to a third party a right or obligation under a contract

Assign a lease
to turn a lease over to another person who will become the new tenant and pay rent to the landlord

Bailee
a person temporarily given possession of another’s goods

Bailment
a situation in which one person takes temporary possession of another’s property on the understanding that it will be returned later

Bailor
the owner of the goods temporarily given to another

Bait-and-switch selling
the practice of attracting buyers by offering goods at a low price and then saying they aren’t available and trying to sell more expensive goods instead

Blue chip stocks
shares in well-known companies with proven records and which have paid out dividends regularly for at least 25 years

Bonds
investment instruments issued by governments and corporations that can be redeemed at a set rate for a stipulated amount of interest, and which can in the meantime be traded for whatever price the market will bear

Breach of condition
failure to perform a fundamental part of a contract

Breach of contract
failure to perform a duty imposed by a contract

Breach of warranty
failure to perform a minor part of a contract

Bylaw
a law passed by a municipal government

Capacity
the legal ability to enter into a valid contract

Capital gain
the profit investors make when selling things for more than they paid for them

Capital loss
the loss investors occur when selling things for less than they paid for them

Caveat
a notice to all interested parties that the caveator claims some interest in a piece of land

Caveat emptor
a Latin expression meaning "let the buyer beware"

Chattels
personal property

Common law
the body of law, based on judges’ decisions, that has developed over time in the English-speaking world

Common shares
shares that are bought and sold on the market and that have the potential to increase or decrease in value depending on what the market dictates

Consideration
something of value exchanged in a contract

Contract
a legally binding agreement between two or more parties

Credit bureau
a profit-making business that keeps records on the credit histories of people

Credit rating
an assessment of a person’s reliability when using credit based on his or her history of borrowing

Damages
money awarded by a court to compensate a person for a wrong suffered

Debentures
investment instruments much like bonds but less secure

Debt investments
investments in which you lend your money to another party in return for interest payments

Discharge
to complete the obligations in a contract, or in a bankruptcy

Dividends
payments a company makes to shareholders in accordance with the number of shares they own—often paid at regular intervals

Duty of care
a responsibility to not cause harm to others

E-commerce
business conducted over the internet

Easement
an interest in land that gives a person certain rights over land to which someone else has title

Encumbrance
a claim or charge against a piece of land

Equities
shares in a company that can be bought or sold in the marketplace

Estate
an interest a person has in land

Express condition
an important term in a contract that both parties agree on

Express contract
a contract in which the terms are specifically laid out

Express warranty
an explicit, clearly stated guarantee that’s usually written down

Expropriation
the act of legally depriving a person of his or her property rights

Face value
the amount the issuer of a bond or similar investment instrument promises to pay for it upon maturity

Fee simple estate
the largest collection of rights a person can have in real property, giving the owner title to the land

Fixed-term tenancy
a rental agreement that begins and ends on specific dates

Fixture
anything that is attached to real property

Foreclosure
a procedure whereby a mortgagor’s right to a property is removed by a court order in favour of the mortgagee

Fraud
the telling of an intentional lie that causes a loss to another party

Growth
the increase in value of shares that will result in capital gains when the shares are sold

Growth stocks
stocks in aggressive, young companies that offer much potential for growth but relatively little security

Guarantee
an express warranty

Guaranteed investment certificate (GIC)
a type of investment much like a term deposit except that it usually cannot be cashed in before a stipulated date and frequently a minimum amount of money is required

Implied condition
a term in a contract that hasn’t been precisely laid out but is assumed by both parties

Implied contract
a contract that is suggested by the actions of the parties

Implied warranty
a guarantee that a seller may not actually make but which the law says is part of the contract anyway

Interest
money paid by borrowers to those who lend them their money

Investment dealer
stockbroker—a person who buys and sells securities like stocks and bonds for customers

Joint tenancy
a tenancy that includes more than one lessee

Joint tenant
someone who owns land along with one or more other parties and who cannot pass on his or her interest in the land in a will

Landlord
a person who rents out a home to a tenant

Lease
a tenancy agreement

Lessee
the tenant in a leasing arrangement

Lessor
the landlord in a leasing arrangement

Liability
legal responsibility for harm done to others

Lien
a claim by one party on goods owned by another party for debts the second party owes the first

Life estate
an interest in land lasting only for the lifetime of the owner

Liquidate
sell assets to raise cash

Liquidity
the ability of an investment to be converted into cash

Matrimonial home
the home in which a married couple lives

Maturity
the time when an investment and the interest it has earned is due to be paid back

Mediate
as a neutral third party, to help two parties in a dispute resolve their differences

Mediator
an independent third party who works at helping the parties involved in a dispute come to an agreement

Minor
a person under the age of majority

Misrepresentation
a statement, either deliberate or accidental, that conveys false information

Mortgage
a loan for the purchase of real property whereby the tender has a claim on the property until the money is paid

Mortgagee
someone who lends money to another for the purchase of real property

Mortgagor
someone who takes out a loan by way of a mortgage to purchase real property

Mutual fund
a pool of money managed by a professional or group of professionals and invested in a large number of different securities

Necessaries
goods and services considered essential for a person’s health and well-being

Negligence
the failure of a person to use reasonable care that results in an injuring or loss to another

Nuisance
interference with another person's enjoyment of his or her property

Occupier's liability
the responsibility that legal occupants of a premise have to others who come onto the property

Offer
a proposal to enter into a contract

Onus
the responsibility to prove something in court

Periodic tenancy
a rental agreement running on a day-to-day, week-to-week, or month-to-month basis

Personal property
any property you can own other than land and things attached to land

Portfolio
the collection of investments held by an investor

Precedent
a court decision that lower courts must follow in similar cases

Preferred shares
shares that pay their owners dividends and a guaranteed cash value if the issuing company goes out of business

Principal
an amount of money that has been borrowed (as opposed to the interest owing on it)

Prospectus
in the mutual fund industry, a document explaining the objectives, investments, and degree of risk of a fund

Quiet enjoyment
a tenant’s right to be free from interference from another person in a rented premises

Quitclaim
a mutual agreement whereby the mortgagor transfers his or her interest in the mortgaged property to the mortgagee

Real estate purchase contract
an interim agreement to buy a property, signed by both buyer and seller

Real property
land and those structures attached to it

Real property report
a report that includes a survey of a property and a description of the surveyor’s findings

Realtor
a salesperson who helps clients sell and buy real property

Registered Retirement Savings Plan
a government-approved plan that allows savings for retirement to grow in investments that are sheltered from taxation until they are withdrawn from the plan

Repudiate
to reject or disclaim a contract

Restrictive covenant
an agreement that restricts the way a person with title to land can use that land

Securities
a general term for investments such as bonds, stocks, debentures, treasury bills, and so on

Security deposit
an amount left by a tenant with a landlord at the beginning of a tenancy to cover any amounts owing when the tenancy ends (commonly called a damage deposit)

Shares
equities (or stocks)

Simple contract
any contract—implied, oral, or written—that is not under seal

Specialty contract
an agreement signed and put under seal

Specific performance
a legal remedy requiring a party who breaks a contract to complete his or her contractual obligations

Statute
a law passed by a government

Stock exchange
a place where shares in companies are bought and sold

Stock market
the market in which equities are bought and sold

Stocks
equities (or shares)

Sublet
as a tenant, to rent premises (or part of it) to a third party who will pay rent to you

Tenancy
the renting of real property

Tenancy agreement
a contract between a landlord and tenant for the rental of a property

Tenancy at sufferance
a situation whereby a landlord allows a tenant to stay on a premises while keeping the right to ask him or her to leave without notice

Tenant
a person who rents, rather than owns, the home in which her or she lives

Tenant in common
someone who owns land along with one or more other parties and who may pass on his or her interest in the property in a will

Term deposit
a type of investment whereby money is lent by an investor to an institution, such as a bank, for a fixed term, in return for a stipulated rate of interest

Title
what is ordinarily called ownership of land

Tort
a civil wrong other than a breach of contract

Treasury bills
short-term debt instruments issued by the government that are bought at a discount and redeemed for a greater face value upon maturity

Under Seal
having a seal attached to it, thereby signifying a formal contract



© 2018 ADLC, a subsidiary of The Board of Trustees of Pembina Hills Regional Division No. 7. All rights reserved.