Glossary of Business and Construction Law Terms
- A method of alternative dispute resolution (ADR) where parties submit their disputes to a neutral third party (arbitrator) for a binding decision, often used in construction contract disputes.
- Bid Bond:
- A type of surety bond submitted with a construction bid to guarantee that the bidder will enter into a contract if awarded the project.
- Breach of Contract:
- Occurs when one party fails to fulfill the obligations outlined in a contract without legal justification.
- Change Order:
- A written agreement that modifies the terms, scope, or price of a construction contract due to changes in project requirements.
- An individual or company that agrees to perform specific construction work under the terms of a contract.
- Corporate Governance:
- The system of rules, practices, and processes by which a company is directed and controlled, often involving the relationship between shareholders, directors, and management.
- Any imperfection or problem in construction work that does not meet industry standards or the contract specifications.
- Eminent Domain:
- The government’s power to take private property for public use, typically with compensation to the property owner.
- Force Majeure Clause:
- A contract provision that excuses a party from performing their obligations in the event of unforeseeable circumstances, such as natural disasters or acts of God.
- Intellectual Property:
- Legal rights that protect creations of the mind, such as patents, trademarks, copyrights, and trade secrets.
- A legal claim against a property to secure payment for services or materials provided during a construction project.
- Liquidated Damages:
- A predetermined amount of money specified in a contract that a party must pay if they fail to meet certain obligations, often used to compensate for project delays.
- A method of ADR where a neutral third party (mediator) assists disputing parties in reaching a voluntary settlement.
- Merger and Acquisition (M&A):
- The process of one company combining with another through various methods, including mergers, acquisitions, or takeovers.
- Non-Disclosure Agreement (NDA):
- A legally binding contract that establishes confidentiality obligations between parties, often used to protect sensitive business information.
- Partnership Agreement:
- A legally binding contract that outlines the terms and conditions governing a partnership, including profit sharing and decision-making processes.
- Performance Bond:
- A type of surety bond that guarantees a contractor will fulfill their contractual obligations and complete a construction project.
- The party who initiates a lawsuit or legal action against another party (the defendant).
- Real Estate Transaction:
- The buying, selling, or transfer of real property, often involving contracts, deeds, and financing.
- Securities Law:
- The body of laws and regulations that govern the issuance and trading of securities, including stocks and bonds.
- A company or individual hired by a general contractor to perform specific tasks or provide services within a larger construction project.
- Substantial Completion:
- The stage in a construction project when the work is nearly finished, allowing the owner to use the property for its intended purpose while some minor items may still need to be completed.
- Title Insurance:
- A type of insurance that protects property buyers and lenders from financial loss due to defects in the property’s title or ownership.
- Zoning Regulations:
- Local government ordinances that specify how land within a particular jurisdiction can be used, including zoning for residential, commercial, and industrial purposes.