Archives: Glossary

Something the law treats as true, even if it is not literally true, so that a legal rule can work. A common example is treating a corporation as a “person” that can own property, make contracts and be sued.

The capacity to hold legal rights and duties, such as owning property, making contracts, and suing or being sued. Every natural person has it, and the law gives it to certain artificial persons such as corporations. Some arrangements do not have it; for example, under California law a trust is generally not a legal personality, and the trustee sues or is sued on its behalf.

In California and some other states, a pleading that challenges the legal sufficiency of a complaint, similar to a federal motion to dismiss for failure to state a claim.

A contract under which a seller agrees to sell, and a buyer to buy, receivables on a recurring schedule on terms set in advance.

A company that purchases debts, often charged-off consumer debts, from the original creditor or another owner.

The body of law governing maritime matters such as ships, cargo and navigable waters, and the jurisdiction of courts over those cases.

A label for people who claim they are not subject to government authority or courts unless they consent. Courts consistently reject these arguments.

Money that the law requires creditors to accept for debts. Under 31 U.S.C. § 5103, U.S. coins and currency, including Federal Reserve notes, are legal tender.

Having full legal capacity to manage one’s own affairs, as opposed to a minor or a person under guardianship.

Under UCC § 1-201(b)(21)(A), the person in possession of a negotiable instrument payable to bearer or to that identified person.