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Legal & AI Glossary

A plain-language guide to the legal and AI terms you are most likely to meet. These are general explanations to help you understand the basics; rules vary by country, so confirm anything specific with a qualified legal consultant.

Affidavit
A written statement of facts that the person making it swears or affirms is true, usually for use in a legal proceeding. Making a false statement in an affidavit can carry serious consequences.
Alimony / spousal maintenance
Financial support that one spouse may be required to pay the other after separation or divorce. The amount, duration, and even whether it applies depend on local law and the couple's circumstances. Learn more →
Arbitration
A private alternative to court where the parties present their case to one or more arbitrators who make a binding decision. It is often used in commercial and cross-border contracts. Learn more →
Breach of contract
When one party fails to do what the contract requires, such as not paying or not delivering on time. The other party may be entitled to a remedy, though what is available varies by jurisdiction. Learn more →
Child custody
The legal arrangements for who a child lives with and who makes decisions about their upbringing after parents separate. Courts generally focus on the child's best interests, though the framework varies by jurisdiction. Learn more →
Clause
A single provision or section within a contract that sets out one specific point, such as payment terms or how the agreement can be ended. Reading clauses carefully matters because each one can change your rights and duties. Learn more →
Contract
A legally binding agreement between two or more parties that creates obligations each side is expected to keep. It can be written or, in many cases, spoken, though written contracts are easier to prove. Learn more →
Damages
A sum of money a court may order one party to pay another to compensate for loss or harm caused by a breach or wrong. How damages are calculated varies by jurisdiction.
Due diligence
The careful investigation and review you carry out before entering a deal or agreement, such as checking a company's finances or a property's legal status. It helps you understand risks before you commit. Learn more →
Employment contract
An agreement between an employer and employee setting out terms such as pay, hours, duties, and how the job can end. Many of these terms are also shaped by local employment laws. Learn more →
Force majeure
A contract clause that can excuse a party from its obligations when extraordinary events outside their control, such as natural disasters, make performance impossible. What counts as force majeure depends on the wording and the applicable law. Learn more →
Indemnity
A promise by one party to cover the costs or losses of another if a certain situation arises. Indemnity clauses shift financial risk, so it is worth understanding exactly what you are agreeing to cover. Learn more →
Intestacy (dying without a will)
What happens when someone dies without a valid will, leaving the law to decide how their estate is shared out. The default rules differ from country to country. Learn more →
Jurisdiction
The authority of a particular court or legal system to decide a matter, and the geographic or subject area it covers. Which jurisdiction applies can affect which laws are used and where a dispute is heard. Learn more →
Liability
Legal responsibility for something, often for a loss, debt, or harm. Being liable usually means you may have to pay compensation or otherwise put things right.
Limited company
A business set up as a separate legal entity from its owners, which can limit the owners' personal liability for the company's debts. Setup and ongoing obligations vary by jurisdiction. Learn more →
Litigation
The process of resolving a dispute through the courts, which can involve filing claims, exchanging evidence, and a judge or jury deciding the outcome. It is often slower and more costly than other options.
Mediation
A way of resolving a dispute in which a neutral third person helps the parties reach their own agreement. The mediator does not impose a decision; the parties stay in control of the outcome.
Non-disclosure agreement (NDA)
A contract in which one or more parties agree to keep certain information confidential and not share it with others. NDAs are common when sharing business ideas, data, or trade secrets. Learn more →
Power of attorney
A legal document that lets you appoint someone to act on your behalf, for example to manage finances or sign documents. The powers granted can be broad or narrow, and the rules differ by country.
Prenuptial agreement
An agreement made before marriage setting out how assets and finances would be handled if the couple later separates. Whether and how courts enforce them varies considerably between countries. Learn more →
Probation period
An initial stretch at the start of a job during which the employer assesses whether the role is a good fit, often with simpler rules for ending the employment. The length and rules vary by country and contract. Learn more →
Security deposit
Money a tenant pays at the start of a tenancy that the landlord may hold to cover unpaid rent or damage beyond normal wear. Rules on holding and returning deposits vary by jurisdiction. Learn more →
Severance / end-of-service
A payment or benefit an employee may receive when their employment ends, sometimes called end-of-service pay. Whether it applies and how much is owed depends heavily on local law and the contract. Learn more →
Shareholders' agreement
A contract among a company's shareholders that sets out how the company will be run and how decisions, ownership, and disputes are handled. It works alongside the company's formal governing documents. Learn more →
Sole proprietorship
A business owned and run by one person where there is usually no legal separation between the owner and the business, so the owner is personally responsible for its debts. It is often the simplest structure to set up. Learn more →
Statute
A written law passed by a legislature, such as a parliament or congress. Statutes vary widely between countries, so the exact rules depend on where you are.
Tenancy agreement (lease)
A contract between a landlord and tenant allowing the tenant to occupy a property in exchange for rent. It sets out terms like the rent, the length of the tenancy, and each side's responsibilities. Learn more →
Lawfe provides general legal information powered by AI. It is not a law firm and does not provide legal advice. For advice on your specific situation, consult a qualified legal consultant — you can connect with a verified consultant directly in the app.

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