Glossary

Arbitration

A private process where the parties agree to let a neutral decision maker resolve their dispute outside of court. Many contracts require it.

Burden of proof

The obligation to prove a disputed fact. In most civil cases the plaintiff must show it is more likely true than not.

Consideration

Something of value each side gives up in a contract. Without consideration on both sides, a promise is usually not legally enforceable.

Cy pres

From the French for ‘as near as possible.’ When a charitable purpose becomes impossible or impractical, a court redirects the assets to the closest achievable purpose. How it works in a dissolution.

Damages

Money a court awards to compensate for harm caused by a legal wrong.

Due diligence

The investigation a party does before a deal or decision, such as reviewing a company’s finances and legal risks before an acquisition. Full explainer.

Due process

The constitutional guarantee of fair procedure, including notice and a chance to be heard, before the government takes your life, liberty, or property.

Fiduciary duty

A legal obligation to act in someone else’s best interest, such as a company director toward shareholders or a trustee toward a beneficiary. Full explainer for nonprofit boards.

Fiscal sponsorship

An arrangement where a charitable project operates under an existing nonprofit’s tax-exempt status instead of forming its own organization. Full explainer.

Injunction

A court order that requires someone to do something or to stop doing something, used when money alone cannot fix the harm.

Jurisdiction

A court’s authority to hear a particular case, based on the subject matter and on the people or property involved.

Parens patriae

Latin for ‘parent of the country.’ The state’s authority to protect interests that have no private owner, including the enforcement of charitable purposes. Why it makes attorneys general the charity regulator.

Prima facie case

Latin for ‘at first look.’ The minimum showing a plaintiff must make to require the defendant to respond.

Pro bono

Short for pro bono publico, ‘for the public good.’ Legal work done free of charge. Not to be confused with pro se or pro hac vice.

Section 1983

A federal statute (42 U.S.C. Section 1983) that lets individuals sue state and local government officials who violate their constitutional rights. How qualified immunity limits it.

Stare decisis

Latin for ‘to stand by things decided.’ The principle that courts follow rules set in earlier decisions so the law stays consistent.

Statute of limitations

The deadline for filing a lawsuit. Once it passes, the claim is usually barred no matter how strong it is.