ACCA LW key terms

A rule from an earlier court decision that later courts must follow when the material facts are the same, particularly where the earlier court was higher in the hierarchy.

The essential legal reasoning on which a court's decision rests; this part of the judgment binds courts below in later cases with similar facts.

Remarks made by a judge that are not necessary to the decision. They are persuasive only and do not bind later courts.

The principle that courts should stand by decided matters and follow earlier rulings rather than reopening settled points of law.

A decision that a court is not obliged to follow but may take into account, such as a ruling from a lower court or a foreign jurisdiction.

A body of rules developed historically to soften the rigidity of the common law, granting remedies based on fairness and conscience rather than strict legal rights.

Law developed by judges through decided cases, as distinct from legislation and from the historical system of equity.

A law enacted by Parliament in written form, also called an Act. It takes precedence over case law where the two conflict.

Rules made by a body other than Parliament under authority granted by a parent Act, such as regulations issued by a government minister.

The process by which courts determine the meaning of words in legislation, using approaches such as the literal, golden and mischief rules.

An approach to interpretation in which words are given their ordinary dictionary meaning, even if this produces an absurd or unfair result.

An approach to interpretation that starts with the ordinary meaning of words but modifies it where that meaning would lead to absurdity or inconsistency.

An approach to interpretation that asks what defect or gap in the previous law the statute was intended to remedy, and reads the words to achieve that purpose.

A clear statement of the terms on which a person is prepared to be bound, made with the intention that it becomes binding once accepted.

An indication that a party is willing to receive offers, such as goods displayed in a shop, which is not itself capable of being accepted.

Unqualified agreement to all the terms of an offer, communicated to the offeror, which brings a binding contract into existence.

Something of value given by each party in exchange for the other's promise; it must be sufficient in law but need not be adequate.

A requirement that the parties meant their agreement to be legally enforceable, presumed in commercial dealings but not in social or domestic arrangements.

The principle that acceptance sent by post takes effect when the letter is properly posted, not when it is received by the offeror.

The rule that only parties to a contract may enforce it or be sued under it, subject to statutory exceptions for third-party beneficiaries.

A false statement of fact made by one party that induces the other to enter the contract; remedies depend on whether it was fraudulent, negligent or innocent.

The remedy that sets a contract aside and restores the parties as far as possible to their positions before it was made.

A sum of money awarded by a court to compensate a claimant for loss caused by a breach of contract or a civil wrong.

The test limiting recovery to losses that were reasonably foreseeable at the time the contract was made or the wrong occurred.

The automatic discharge of a contract when an unforeseen event, outside the parties' control, makes performance impossible or radically different from what was agreed.

A contractual term that excuses or adjusts performance when specified events beyond a party's control prevent or delay it, without relying on the doctrine of frustration.

Failure by a party to perform its obligations under the agreement, giving the innocent party rights to damages and possibly termination.

A breach so serious that it goes to the root of the contract, entitling the innocent party to treat the contract as ended and claim damages.

A term that seeks to limit or exclude a party's liability, which is enforceable only if properly incorporated and reasonable under statute.

A civil wrong consisting of a breach of a duty of care owed to another, causing loss that is not too remote.

A legal obligation to take reasonable care towards others who could foreseeably be harmed by one's acts or omissions.

Liability imposed on one person, usually an employer, for wrongs committed by another, usually an employee, acting in the course of employment.

A relationship in which one person, the agent, is authorised to act on behalf of another, the principal, and can affect the principal's legal position.

Authority expressly or impliedly conferred on an agent by the principal, whether through words or the circumstances of the appointment.

Authority that arises where a principal's conduct leads a third party reasonably to believe the agent has power to act, binding the principal.

A business relationship between two or more persons carrying on a business together with a view to profit, generally with unlimited joint liability.

The principle that a registered company is a legal person distinct from its owners and managers, able to own property, contract and sue in its own name.

The position in which shareholders of a company risk only the amount unpaid on their shares, rather than their personal assets, for company debts.

A court's exceptional disregard of a company's separate personality to hold shareholders or directors personally responsible, usually where the company is a sham or used for fraud.

A duty of loyalty and good faith owed by a person in a position of trust, such as a director, requiring them to act in the beneficiary's interests and avoid conflicts.

The standard requiring a company director to exercise the skill and diligence reasonably expected of someone with their knowledge and experience in that role.