Abuse of process: A cause of action that arises when one party misuses the legal process to injure another.

Accord and satisfaction: An agreement between two parties, such as the employee and his or her company, to compromise disputes concerning outstanding debts, compensation, or terms of employment. Satisfaction occurs when the terms of the compromise are fully performed.

Action in accounting: A cause of action in which one party seeks a determination of the amount of money owed by another.

Admissible: Capable of being introduced in court as evidence.

Advance: Sometimes referred to as "draw," it is a sum of money that is applied against money to be earned.

Affidavit: A written statement signed under oath.

Allegations: Written statements of a party to a lawsuit that charge the other party with wrongdoing. In order to be successful, allegations must be proven.

Answer: The defendant's reply to the plaintiff's allegations in a complaint.

Anticipatory breach: A breach of contract that occurs when one party, i.e., the employee, states in advance of performance that he or she will definitely not perform under the terms of his or her contract.

Appeal: A proceeding whereby the losing party to a lawsuit requests that a higher court determine the correctness of the decision.

Arbitration: A proceeding whereby both sides to a lawsuit agree to submit their dispute to arbitrators, rather than judges. The arbitration proceeding is expeditious and is legally binding on all parties.

Assignment: The transfer of a right or interest by one party to another.

Attorney in fact: A person appointed by another to transact business on his or her behalf; the person does not have to be a lawyer.

At-will employment: See Employment at will.

Award: A decision made by a judicial body to compensate the winning party in a lawsuit.

Bill of particulars: A document used in a lawsuit that specifically details the loss alleged by the plaintiff.

Breach of contract: A legal cause of action for the unjustified failure to perform a duty or obligation specified in an agreement.

Brief: A concise statement of the main contents of a lawsuit.

Burden of proof: The responsibility of a party to a lawsuit to provide sufficient evidence to prove or disprove a claim.

Business deduction: A legitimate expense that can be used to decrease the amount of income subject to tax.

Business slander: A legal wrong committed when a party orally makes false statements that impugn the business reputation of another (e.g., imply that the person is dishonest, incompetent, or financially unreliable).

Calendar: A list of cases to be heard each day in court.

Cause of Action: The legal theory on which a plaintiff seeks to recover damages.

Caveat emptor: A Latin expression frequently applied to consumer transactions; translated as "Let the buyer beware." Cease-and-desist letter: A letter, usually sent by a lawyer, that notifies an individual to stop engaging in a particular type of activity, behavior, or conduct that infringes on the rights of another.

Check: A negotiable instrument; the depositor's written order requesting his or her bank to pay a definite sum of money to a named individual, entity, or to the bearer.

Civil court: Generally, any court that presides over noncriminal matters.

Claims court: A particular court that hears tax disputes.

Clerk of the court: A person who determines whether court papers are properly filed and court procedures followed.

Collateral estoppel: See Estoppel. Collateral estoppel happens when a prior but different legal action is conclusive in a way to bring about estoppel in a current legal action.

Common law: Law that evolves from reported case decisions that are relied on for their precedential value.

Compensatory damages: A sum of money, awarded to a party, that represents the actual harm suffered or loss incurred.

Complaint: A legal document that commences a lawsuit; it alleges facts and causes of action that a plaintiff relies on to collect damages.

Conflict of interest: The ethical inability of a lawyer to represent a client because of competing loyalties, e.g., representing both employer and employee in a labor dispute.

Consideration: An essential element of an enforceable contract; something of value given or promised by one party in exchange for an act or promise of another.

Contempt: A legal sanction imposed when a rule or order of a judicial body is disobeyed.

Contingency fee: A type of fee arrangement whereby a lawyer is paid a percentage of the money recovered. If unsuccessful, the client is responsible only for costs already paid by the lawyer.

Continuance: The postponement of a legal proceeding to another date.

Contract: An enforceable agreement, either written, oral, or implied by the actions or intentions of the parties.

Contract modification: The alteration of contract terms.

Counterclaim: A claim asserted by a defendant in a lawsuit.

Covenant: A promise.

Credibility: The believability of a witness as perceived by a judge or jury.

Creditor: The party to whom money is owed.

Cross-examination: The questioning of a witness by the opposing lawyer.

Damage: An award, usually money, given to the winning party in a lawsuit as compensation for the wrongful acts of another.

Debtor: The party who owes money.

Decision: The determination of a case or matter by a judicial body.

Deductible: The unrecoverable portion of insurance proceeds.

Defamation: An oral or written statement communicated to a third party that impugns a person's reputation in the community.

Default judgment: An award rendered after one party fails to appear in a lawsuit.

Defendant: The person or entity who is sued in a lawsuit.

Defense: The defendant's justification for relieving himself or herself of fault. Definite term of employment: Employment of a fixed period of time.

Deposition: A pretrial proceeding in which one party is questioned, usually under oath, by the opposing party's lawyer.

Disclaimer: A clause in a sales, service, or other contract that attempts to limit or exonerate one party from liability in the event of a lawsuit.

Discovery: A general term used to describe several pretrial devices (e.g., depositions and interrogatories) that enable lawyers to elicit information from the opposing side.

Dual capacity: A legal theory, used to circumvent workers' compensation laws, that allows an injured employee to sue his or her employer directly in court.

Due process: Constitutional protections that guarantee that a person's life, liberty, or property cannot be taken away without the opportunity to be heard in a judicial proceeding.

Duress: Unlawful threats, pressure, or force that induces a person to act contrary to his or her intentions; if proved, it allows a party to disavow a contract.

Employee: A person who works and is subject to an employer's scope, direction, and control.

Employment at will: Employment by which an employee has no job security.

Employment discrimination: Conduct directed at employees and job applicants that is prohibited by law.

Equity: Fairness; usually applied when a judicial body awards a suitable remedy other than money to a party (e.g., an injunction).

Escrow account: A separate fund where lawyers or others are obligated to deposit money received from or on behalf of a client.

Estoppel: Estoppel is a legal bar to prevent a party from asserting a fact or claim inconsistent with that party's prior position that has been relied on or acted on by another party.

Evidence: lnformation in the form of oral testimony, exhibits, affidavits, etc., used to prove a party's claim.

Examination before trial: A pretrial legal device; also called a "deposition." Exhibit: Tangible evidence used to prove a party's claim.

Exit agreements: Agreements sometimes signed between employers and employees on resignation or termination of an employee's services.

Express contract: An agreement whose terms are manifested by clear and definite language, as distinguished from agreements inferred from conduct.

False imprisonment: The unlawful detention of a person who is held against his or her will without authority or justification.

Filing fee: Money paid to start a lawsuit.

Final decree: A court order or directive of a permanent nature.

Financial statement: A document, usually prepared by an accountant, that reflects a business's (or individual's) assets, liabilities, and financial condition.

Flat fee: A sum of money paid to a lawyer as compensation for services.

Flat fee plus time: A form of payment in which a lawyer receives one sum for services and also receives additional money calculated on an hourly basis.

Fraud: A false statement that is relied on and causes damages to the defrauded party.

General denial: A reply contained in the defendant's answer.

Ground: The basis for an action or an argument.

Guaranty: A contract in which one party agrees to answer for or satisfy the debt of another.

Hearsay evidence: Unsubstantiated evidence that is often excluded by a court.

Hourly fee: Money paid to a lawyer for services, computed on an hourly basis.

Implied contract: An agreement that is tacit rather than expressed in clear and definite language; an agreement inferred from the conduct of the parties.

Indemnification: Protection or reimbursement against damage or loss. The indemnified party is protected against liabilities or penalties from that party's actions; the indemnifying party provides the protection or reimbursement.

Infliction of emotional distress: A legal cause of action in which one party seeks to recover damages for mental pain and suffering caused by another.

Injunction: A court order restraining one party from doing or refusing to do an act.

Integration: The act of making a contract whole by integrating its elements into a coherent single entity. An agreement is considered integrated when the parties involved accept the final version as a complete expression of their agreement.

Interrogatories: A pretrial device used to elicit information; written questions are sent to an opponent to be answered under oath.

Invasion of privacy: The violation of a person's constitutionally protected right to privacy.

Judgment: A verdict rendered by a judicial body; if money is awarded, the winning party is the "judgment creditor" and the losing party is the "judgment debtor." Jurisdiction: The authority of a court to hear a particular matter.

Legal duty: The responsibility of a party to perform a certain act.

Letter of agreement: An enforceable contract in the form of a letter.

Letter of protest: A letter sent to document a party's dissatisfaction.

Liable: Legally in the wrong or legally responsible for.

Lien: A claim made against the property of another in order to satisfy a judgment.

Lifetime contract: An employment agreement of infinite duration that is often unenforceable.

Liquidated damages: An amount of money agreed on in advance by parties to a contract to be paid in the event of a breach or dispute.

Malicious interference with contractual rights: A legal cause of action in which one party seeks to recover damages against an individual who has induced or caused another party to terminate a valid contract.

Malicious prosecution: A legal cause of action in which one party seeks to recover damages after another party instigates or institutes a frivolous judicial proceeding (usually criminal) that is dismissed.

Mediation: A voluntary dispute-resolution process in which both sides attempt to settle their differences without resorting to formal litigation.

Misappropriation: A legal cause of action that arises when one party makes untrue statements of fact that induce another party to act and be damaged as a result.

Mitigation of damages: A legal principle that requires a party seeking damages to make reasonable efforts to reduce damages as much as possible; for example, to seek new employment after being unfairly discharged.

Motion: A written request made to a court by one party during a lawsuit.

Negligence: A party's failure to exercise a sufficient degree of care owed to another by law.

Nominal damages: A small sum of money awarded by a court.

Noncompetition clause: A restrictive provision in a contract that limits an employee's right to work in that particular industry after he or she ceases to be associated with his or her present employer.

Notary Public: A person authorized under state law to administer an oath or verify a signature.

Notice to show cause: A written document in a lawsuit asking a court to expeditiously rule on a matter.

Objection: A formal protest made by a lawyer in a lawsuit.

Offer: The presentment of terms, which, if accepted, may lead to the formation of a contract.

Opinion letter: A written analysis of a client's case, prepared by a lawyer.

Option: An agreement giving one party the right to choose a certain course of action.

Oral contract: An enforceable verbal agreement.

Parol evidence: Oral evidence introduced at a trial to alter or explain the terms of a written agreement.

Partnership: A voluntary association between two or more competent persons engaged in a business as co-owners for profit.

Party: A plaintiff or defendant in a lawsuit.

Perjury: Committing false testimony while under oath.

Petition: A request filed in court by one party.

Plaintiff: The party who commences a lawsuit.

Pleading: A written document that states the facts or arguments put forth by a party in a lawsuit.

Power of attorney: A document executed by one party allowing another to act on his or her behalf in specified situations.

Pretrial discovery: A legal procedure used to gather information from an opponent before the trial.

Process server: An individual who delivers the summons and/or complaint to the defendant.

Promissory note: A written acknowledgment of a debt whereby one party agrees to pay a specified sum on a specified date.

Proof: Evidence presented at a trial and used by a judge or jury to fashion an award. Punitive damages: Money awarded as punishment for a party's wrongful acts.

Quantum meruit: A legal principle whereby a court awards reasonable compensation to a party who performs work, labor, or services at another party's request.

Rebuttal: The opportunity for a lawyer at a trial to ask a client or witness additional questions to clarify points elicited by the opposing lawyer during cross-examination.

Release: A written document that, when signed, relinquishes a party's rights to enforce a claim against another.

Remedy: The means by which a right is enforced or protected.

Reply: A written document in a lawsuit conveying the contentions of a party in response to a motion.

Restrictive covenant: A provision in a contract that forbids one party from doing a certain act, e.g., working for another, soliciting customers, etc.

Retainer: A sum of money paid to a lawyer for services to be rendered.

Service letter statutes: Laws in some states that require an employer to furnish an employee with written reasons for his or her discharge.

Sexual harassment: Prohibited conduct of a sexual nature that occurs in the workplace.

Shop rights: The rights of an employer to use within the employer's facility a device or method developed by an employee.

Slander: Oral defamation of a party's reputation.

Small-claims court: A particular court that presides over small disputes (e.g., those involving sums of less than $3,500).

Sole proprietorship: An unincorporated business.

Statement of fact: Remarks or comments of a specific nature that have a legal effect.

Statute: A law created by a legislative body.

Statute of frauds: A legal principle requiring that certain contracts be in writing in order to be enforceable.

Statute of limitations: A legal principle requiring a party to commence a lawsuit within a certain period of time.

Stipulation: An agreement between the parties.

Submission agreement: A signed agreement whereby both parties agree to submit a present dispute to binding arbitration.

Subpoena: A written order requiring a party or witness to appear at a legal proceeding; a subpoena duces tecum is a written order requiring a party to bring books and records to the legal proceeding.

Summation: The last part of the trial wherein both lawyers recap the respective positions of their clients.

Summons: A written document served on a defendant giving notification of a lawsuit.

Temporary decree: A court order or directive of a temporary nature, capable of being modified or changed.

Testimony: Oral evidence presented by a witness under oath.

Time is of the essence: A legal expression often included in agreements to specify the requirement of timeliness.

Tort: A civil wrong.

Unfair and deceptive practice: Illegal business and trade acts prohibited by various federal and state laws.

Unfair discharge: An employee's termination without legal justification.

Verdict: The decision of a judge or jury.

Verification: A written statement signed under oath.

Waiver: A written document that, when signed, relinquishes a party's rights.

Whistle-blowing: Protected conduct where one party complains about the illegal acts of another.

Witness: A person who testifies at a judicial proceeding.

Workers' compensation: A process in which an employee receives compensation for injuries sustained in the course of employment.