Common Law Basics
This is law that develops from custom and judicial decisions rather than written statutes.
What is common law?
The person who creates a trust and places assets into it.
Who is the grantor or settlor?
This occurs when one party fails to fulfill their duties in a contract.
What is a breach of contract?
Paper currency issued by the Federal Reserve.
What are Federal Reserve Notes?
The official power of a court to make legal decisions and judgments.
What is jurisdiction?
A wrongful act or infringement of a right that can lead to civil liability.
What is a tort?
The person who manages the property in a trust.
Who is the trustee?
Something of value exchanged between parties in a contract.
What is consideration?
Money deposited in a bank that can be withdrawn on demand.
What is a demand deposit?
A written order requiring a person to appear in court.
What is a subpoena?
A legally binding agreement between two or more parties.
What is a contract?
The person or entity that benefits from a trust.
Who is the beneficiary?
A contract that is enforceable by law even if it is not written.
What is an oral contract?
An electronic transfer of money from one bank to another, often used for large payments.
What is a wire transfer?
A written statement made under oath.
What is an affidavit?
In common law, this term refers to a previous court decision that guides future cases.
What is precedent?
This type of trust cannot be changed or canceled once it is created, giving the grantor no control but providing strong asset protection.
What is an irrevocable trust?
A clause in a contract that excuses performance due to extraordinary events.
What is force majeure?
The process of legally declaring inability to pay debts.
What is bankruptcy?
A jury’s decision in a trial.
What is a verdict?
A person who brings a lawsuit against another.
Who is the plaintiff?
One major benefit of an irrevocable trust is that these assets are generally shielded from this group of people or entities.
Who are creditors?
The legal ability to enter into a binding agreement.
What is capacity?
The right of a lender to hold or seize property until a debt is paid.
What is a lien?
The formal written statement of a party’s claims or defenses.
What is a pleading?