LK Notaries Final flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Consensus ad idem

The meeting of minds required for a valid contract; the parties must agree on the same thing in the same sense. Absence of consensus renders the contract void or voidable depending on the nature of the defect.

Restitutio in integrum

A remedy restoring parties to their pre-contract position after rescission. Available for minors' contracts and contracts rescinded for fraud, duress, or lesion, and requires the return of benefits received.

Suspensive condition

A contractual term that postpones the operation of the obligation until a future uncertain event occurs. Until fulfilment, the obligation is not enforceable; fictional fulfilment is treated as actual fulfilment.

Prescription period

The statutory time limit within which a claim must be brought. Under the Prescription Ordinance, contractual claims generally prescribe in six years and delictual claims in two years.

Registration of deeds

The system under the Land Registry Act by which instruments affecting land are recorded. Priority among competing interests generally follows the order of registration rather than the order of execution.

Servitude

A right enjoyed by the owner of a dominant tenement over a servient tenement, such as a right of way. Created by notarial deed and registration; extinguished by non-use or merger.

Co-ownership share

An undivided interest held by a co-owner in common property. Each co-owner may alienate or encumber their share without consent of the others, subject to any agreed pre-emption right.

Apartment Ownership Act

The statute governing condominium property in Sri Lanka. A declaration registered with the Condominium Management Authority creates individual units with common elements and a management corporation.

Primary mortgage

A first-ranking charge over immovable property created by notarial deed and registration. It ranks ahead of subsequent mortgages according to the date of registration, not the date of the deed.

Equity of redemption

The mortgagor's right to redeem the property on payment of all secured sums. The mortgagee cannot clog this right or impose an unreasonable restraint on redemption.

Surety's liability

A surety's obligation is co-extensive with the principal debtor's liability. The surety may raise defences available to the principal debtor and is discharged by release of the debtor.

Charge registration

A company must register charges over its assets with the Registrar of Companies within the statutory period. Failure renders the charge void against the liquidator and creditors.

Separate legal personality

The principle that a company registered under the Companies Act is a legal person distinct from its shareholders. It owns property and contracts in its own name with perpetual succession.

Lifting the corporate veil

A court's power to disregard separate legal personality where the company is used for fraud, sham, or as a mere agent of a shareholder, thereby imposing personal liability.

Director's fiduciary duty

The duty of good faith, care, and skill owed by directors to the company. Directors must avoid conflicts of interest; breach may result in personal liability and disqualification.

Kandyan marriage

A marriage solemnised under the Kandyan Marriage and Divorce Act. It is governed by Kandyan law for divorce, matrimonial rights, and succession, and registration is essential for proof.

Welfare of the child

The paramount consideration in custody disputes. Courts assess the child's best interests, including stability, education, and relationship with each parent, when making custody and access orders.

Muslim Marriage and Divorce Act

The statute governing marriage, divorce, and maintenance for Muslims in Sri Lanka. The Quazi court has jurisdiction over matrimonial disputes under this Act.

Maintenance Ordinance

The statute under which a spouse or child may claim maintenance. The court assesses need, means, and conduct of the parties when determining the amount and duration of maintenance.

Legitima portio

The forced share of an estate reserved for surviving children and, in some regimes, the spouse. A will cannot defeat these forced shares, which take priority over testamentary dispositions.

Intestate succession

The statutory order of distribution where a person dies without a valid will. Under the general law, the spouse and children take first, followed by parents, siblings, and more remote relatives.

Probate

A court grant confirming the executor's authority to administer an estate under a will. Letters of administration are granted where there is no executor or on intestacy.

Muslim will limit

Under Muslim law a testator may dispose of only one-third of the estate by will. The remaining two-thirds pass according to the fixed Quranic inheritance shares.

Notarial protocol

The notary's register recording each deed, its date, the parties, and a summary. It is a public record that may be inspected on payment of the prescribed fees.

Attestation clause

The part of a deed in which the notary certifies that the parties appeared, were identified, and executed the deed voluntarily. False certification is a disciplinary and criminal offence.

Conflict of interest

A situation where the notary or a close relative has a personal interest in the transaction. The notary must decline to act and refer the parties to another notary.

Deed formalities

The statutory requirements for a valid deed, including parties' names, recitals, operative clauses, consideration, property description, and attestation with signatures of parties, witnesses, and notary.

Touting

The prohibited practice of soliciting clients through intermediaries or improper inducements. It breaches professional dignity and may lead to suspension or removal from office.

Client money account

A separate bank account in which a notary holds funds belonging to clients. It must be reconciled regularly and kept distinct from the notary's own funds to prevent misappropriation.

Customer due diligence

The AML process of identifying the customer and beneficial owner, verifying identity with reliable documents, and understanding the purpose and nature of the transaction before acting.

Suspicious transaction report

A report filed promptly with the Financial Intelligence Unit where a notary suspects money laundering or terrorist financing. Tipping off the customer is prohibited and is a criminal offence.

Stamp duty

A tax payable on instruments such as transfers, leases, mortgages, and gifts under the Stamp Ordinance. Unstamped instruments are inadmissible in evidence until duty and penalty are paid.