What is the regular Lawyer Jargon in our days
A Law Firm may be full of confusing terms, and if you don’t know what they mean then setting up a company can start to look far more scary than it really should be. Read through this jargon buster and you should find it much easier to understand what starting up is all about.
This is the capital that’s going to be spent in a company. Example: ‘I launch my company with a capital of $5,000, of which $2,000 is my own.’
You are entered into a deal as you sign a legal document. Starting a business allows you to sign and enter into contracts on behalf of the business—the deal would be between the other party and the organization, not you.
The directors of the company are ultimately the persons in charge of the company. There will be boards of directors, named by the founders, for a big corporation. However, in the case of a home company, you can name yourself as sole director because you are still the sole shareholder (see ‘shareholder’).
This is the official name for the company’s start-up operation. Example: ‘My company was incorporated in March 2021.’
When a corporation cannot afford to pay off its debts. The form of business you have set up will have an impact on what happens in this situation—you might be responsible for any of more of your debts.
A limited liability company is one where you agree upfront how much risk you can face if anything goes wrong. This saves you from being financially ruined if anything bad happens to your company.
The ‘office’ of your business is not only a position for computers—it is also a legal term, meaning that your company is located. Your business must have a registered office, which means that you cannot start a company until you have an address that would be legitimate to use for this reason.
Home company would be private, which means that members of the public cannot participate in the purchase of shares. This would not deter individuals from purchasing percentages of the business if you’re able to sell, however. Starting a business as a private company doesn’t deter you from turning it to a public one later.
Someone who serves as a proxy for you on your behalf—you have granted them the legal right to talk for you. For eg, if you get a lawyer to manage the incorporation of your business, they can incorporate it to you by a proxy.
The owners are the persons who own the corporation. In your firm, you will be the only shareholder (and thus own 100% of your business) unless you have made a bargain with someone else for them to own a share.
When you deal with laws, the amount of Latin involved can be overwhelming. Here are some Latin words that you might come across when you start up your business.
Bona fide meaning: ‘in good faith’. This is used to suggest that somebody thinks they’re telling the truth.
De facto meaning: ‘in fact’. Used where something has happened that gives priority to the ‘actual’ case over the legal one.
De jure meaning: ‘in law’. The opposite of the de facto situation.
Ex gratia meaning: ‘out of grace’. When anything is going to be done at no cost.
Prima facie meaning: ‘at first sight’. Anything that seems real, but it’s false.
Quid pro quo meaning: ‘something for something’. Where a bill is paid for a service (or services will be exchanged).
Be Careful with the Lawyer Jargon
No matter how much jargon you can begin to experience when you start your company, don’t start using it yourself. It will make it so that the ‘insiders’ will get what you say, and everyone else will feel either a little stupid or a little irritated. By the same way, if you’re talking to someone (your accountant, for example) and they’re using a language that you don’t understand, there’s nothing wrong with telling them to clarify what they mean—their it’s mistake to use an excessively complex term, not yours for not understanding it.
If you’re not aware, there’s a clear rule: jargon is very unique to the communication of scientific definitions. It should not be used to replace everyday language, since it does little but create misunderstanding.