C corporation
Common business slang to distinguish a corporation whose profits are taxed separate from its owners under subchapter C of the Internal Revenue Code, from an S corporation, whose profits are passed through to shareholders and taxed on their personal returns under subchapter S of the Internal Revenue Code.

capital case
A prosecution for murder in which the jury is also asked to decide if the defendant is guilty and, if he is, whether he should be put to death. When a prosecutor brings a capital case (also called a death penalty case), she must charge one or more "special circumstances" that the jury must find to be true in order to sentence the defendant to death. Each state (and the federal government) has its own list of special circumstances, but common ones include multiple murders, use of a bomb or a finding that the murder was especially heinous, atrocious or cruel.

capital gains
The profit on the sale of a capital asset, such as stock or real estate. If you sell your primary residence, you can exclude $250,000 in profit from capital gains tax. A couple can exclude $500,000.

capital punishment
The decision by a jury, in the second phase of a captital case, that the convicted defendant should be put to death.

capitalized interest
The accrued interest that is added to the principal balance of a loan while you are not making payments or your payments are insufficient to cover both the principal and interest due. When this happens, you end up paying interest on interest, sometimes called "negative amortization."

caption
A heading on all pleadings submitted to the court. It states basic information such as the parties names, court and case number.

carryover basis
The tax basis of someone who receives a gift. The recipient's basis is the same as the giver's; it simply "carries over" when the gift is made.

case
A term that most often refers to a lawsuit -- for example, "I filed my small claims case." "Case" also refers to a written decision by a judge -- or for an appellate case, a panel of judges. For example, the U.S. Supreme Court's decision legalizing abortion is commonly referred to as the Roe v. Wade case. Finally, the term also describes the evidence a party submits in support of her position -- for example, "I have made my case" or "'My case-in-chief' has been completed."

cash surrender value
The amount of cash available upon voluntary termination of an insurance policy before the insurance benefits become payable.

cause of action
A specific legal claim -- such as for negligence, breach of contract or medical malpractice -- for which a plaintiff seeks compensation. Each cause of action is divided into discrete elements, all of which must be proved to present a winning case.

CC&R
See covenants, conditions & restrictions.

CCCS
See Consumer Credit Counseling Service.

census
An official count of the number of people living in a certain area, such as a district, city, county, state, or nation. The United States Constitution requires the federal government to perform a national census every ten years. The census includes information about the respondents' sex, age, family, and social and economic status.

certification mark
A name, symbol, or other device used by an organization to vouch for the quality of products and services provided by others, for example, the "AAA Approved" sign found at hotels.

certification of trust
See abstract of trust.

certified copy
A copy of a document issued by a court or government agency guaranteed to be a true and exact copy of the original. Many agencies and institutions require certified copies of legal documents before permitting certain transactions. For example, a certified copy of a death certificate is required before a bank will release the funds in a deceased person's payable-on-death account to the person who has inherited them.

challenge for cause
A party's request that the judge dismiss a potential juror from serving on a trial jury by providing a valid legal reason why he shouldn't serve. Potential bias is a common reason potential jurors are challenged for cause -- for example, the potential juror is a relative of a party or one of the lawyers, or admits to a prejudice against one party's race or religion. Judges can also dismiss a potential juror for cause. There is no limit on the number of successful challenges for cause. Compare peremptory challenges.

chambers
A fancy word for a judge's office. Trial court judges often schedule pre-trial settlement conferences and other informal meetings in chambers.

Chapter 13 bankruptcy
The reorganization bankruptcy for consumers, in which you partially or fully repay your debts. In Chapter 13 bankruptcy, you keep your property and use your income to pay all or a portion of the debts over three to five years. The minimum amount you must pay is roughly equal to the value of your nonexempt property. In addition, you must pledge your disposable net income -- after subtracting reasonable expenses -- for the period during which you are making payments. At the end of the three-to five-year period, the balance of what you owe on most debts is erased.

Chapter 13 plan
A document filed in a Chapter 13 bankruptcy in which the debtor shows how all of his or her disposable income will be used over a three- to five-year period to pay all mandatory debts -- for example, back child support, taxes, and mortgage arrearages -- as well as some or all unsecured, nonpriority debts, such as medical and credit card bills.

Chapter 7 bankruptcy
The most familiar type of bankruptcy, in which many or all of your debts are wiped out completely in exchange for giving up your nonexempt property. Chapter 7 bankruptcy takes from three to six months, costs about $200, and commonly requires only one trip to the courthouse.

charge
A formal accusation of criminal activity. The prosecuting attorney decides on the charges, after reviewing police reports, witness statements and any other evidence of wrongdoing. Formal charges are announced at an arrested person's arraignment.

charitable trust
Any trust designed to make a substantial gift to a charity and also achieve income and estate tax savings for the person who creates the trust (the grantor).

child
(1) A son or daughter of any age, sometimes including biological offspring, unborn children, adopted children, stepchildren, foster children and children born outside of marriage. (2) A person under an age specified by law, often 14 or 16. For example, state law may require a person to be over the age of 14 to make a valid will, or may define the crime of statutory rape as sex with a person under the age of 16. In this sense, a child can be distinguished from a minor, who is a person under the age of 18 in most states. A person below the specified legal age who is married is often considered an adult rather than a child. See also emancipation.

child support
The entitlement of all children to be supported by their parents until the children reach the age of majority or become emancipated -- usually by marriage, by entry into the armed forces or by living independently. Many states also impose child support obligations on parents for a year or two beyond this point if the child is a full-time student. If the parents are living separately, they each must still support the children. Typically, the parent who has custody meets his or her support obligation through taking care of the child every day, while the other parent must make payments to the custodial parent on behalf of the child -- usually cash but sometimes other kinds of contributions. When parents divorce, the court almost always orders the non-custodial parent to pay the custodial parent an amount of child support fixed by state law. Sometimes, however, if the parents share physical custody more or less equally, the court will order the higher-income parent to make payments to the lower-income parent.

circuit court
The name used for the principal trial court in many states. In the federal system, appellate courts are organized into thirteen circuits. Eleven of these cover different geographical areas of the country -- for example, the United States Court of Appeal for the Ninth Circuit covers Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon and Washington. The remaining circuits are the District of Columbia Circuit and the Federal Circuit, (which hears patent, customs and other specialized cases based on subject matter). The term derives from an age before mechanized transit, when judges and lawyers rode "the circuit" of their territory to hold court in various places.

circumstantial evidence
Evidence that proves a fact by means of an inference. For example, from the evidence that a person was seen running away from the scene of a crime, a judge or jury may infer that the person committed the crime.

civil
Noncriminal. See civil case.

civil case
A noncriminal lawsuit, usually involving private property rights. For example, lawsuits involving breach of contract, probate, divorce, negligence and copyright violations are just a few of the many hundreds of varieties of civil lawsuits.

civil procedure
The rules used to handle a civil case from the time the initial complaint is filed through pretrial discovery, the trial itself and any subsequent appeal. Each state adopts its own rules of civil procedure (often set out in a separate Code of Civil Procedure), but many are influenced by or modeled on the Federal Rules of Civil Procedure.

Civil Rights Act of 1964
Federal legislation designed to end discrimination based on religion, color, race or national origin. This law guarantees the right of access to education, public facilities and public accommodations, such as restaurants and hotels. It also prohibits discrimination in employment.

class action
A lawsuit in which a large number of people with similar legal claims join together in a group (the class) to sue someone, usually a company or organization. Common class actions involve cases in which a product has injured many people, or in which a group of people has suffered discrimination at the hands of an organization.

cleaning fee
A nonrefundable fee charged by a landlord when a tenant moves in. The fee covers the cost of cleaning the rented premises after you move out, even if you leave the place spotless. Cleaning fees are illegal in some states and specifically allowed in others, but most state laws are silent on the issue. Landlords in every state are allowed to use the security deposit to clean a unit that is truly dirty.

clear and present danger
Speech that poses a "clear and present danger" to the public or government will not be protected under the First Amendment's guarantee of free speech. The classic example is that shouting "Fire!" in a crowded theatre is not protected speech.

close corporation
A corporation owned and operated by a few individuals, often members of the same family, rather than by public shareholders. State laws permit close corporations to function more informally than regular corporations. For example, shareholders can make decisions without holding meetings of the board of directors, and can fill vacancies on the board without a vote of the shareholders.

closing argument
At trial, a speech made by each party after all the evidence has been presented. The purpose is to review the testimony and evidence presented during the trial as part of forcefully explaining why your side should win. Especially in trials before a judge without a jury, it is common for both parties to waive their closing argument on the theory that the judge has almost surely already arrived at her decision.

co-tenants
Two or more tenants who rent the same property under the same lease or rental agreement. Each co-tenant is 100% responsible for carrying out the rental agreement, which includes paying the entire rent if the other tenant skips town and paying for damage caused by the other tenant.

codicil
A supplement or addition to a will. A codicil may explain, modify, add to, subtract from, qualify, alter or revoke existing provisions in a will. Because a codicil changes a will, it must be signed in front of witnesses, just like a will.

collateral
Property that guarantees payment of a secured debt.

collateral estoppel
See estoppel.

collection agency
A company hired by a creditor to collect a debt that it is owed. Creditors typically hire a collection agency only after they have made efforts to collect the debt themselves, typically through letters (called "dunning" letters) and telephone calls. Collection agencies are regulated by the federal Fair Debt Collection Practices Act. Unfortunately, too many collectors ignore this law.

collective mark
A name, symbol or other device used by members of a group or organization to identify goods or services it provides. For example, the letters ILGWU on a shirt label signify that the shirt was made by a member of the International Ladies' Garment Workers' Union.

collective work
For copyright purposes, a work, such as a periodical, anthology or encyclopedia, in which a number of separate and independent works are assembled into one work. To create a collective work, permission must be obtained from the owners of the copyrights of the constituent parts (assuming such parts are not already in the public domain). Although the author of the compilation may not own the copyright to any of the individual parts, the creativity involved in selecting and organizing the constituent materials is in itself protected by copyright.

collision damage waiver
See loss damage waiver.

collision insurance coverage
A component of car insurance that pays for damages to the insured vehicle that result from a collision with another vehicle or object. Collision insurance generally covers the amount of damage over and above an amount the insured person must pay, called the "deductible" amount.

collusion
Secret cooperation between two people in order to fool another. Collusion was often practiced by couples before no-fault divorce in order to make up a grounds for divorce (such as adultery). By fabricating a permitted reason for divorce, colluding couples hoped to trick a judge into granting their freedom from the marriage. But a spouse accused of wrongdoing who later changed his or her mind about the divorce could expose the collusion to prevent the divorce from going through.

comfort care
Medical care intended to provide relief from pain and discomfort, such as pain control drugs.

comity of nations
Courtesy between nations that obligates their mutual recognition of each other's laws.

commerce
As defined by the Lanham Act, trade that the federal government is authorized to regulate. To qualify for federal trademark protection and registration, a mark must have first been used in commerce. In practice, this means that a product or service must be sold outside of the state in which it originates, be advertised out of state or cater to travelers, such as a hotel, before it can qualify for trademark protection.

commercial frustration
An unforeseen and uncontrollable event that excuses a party to a contract from performing his or her duties under that contract. For example, a landlord can break a lease if the property she agreed to rent accidentally burns down before the tenants move in.

common law marriage
In some states, a type of marriage in which couples can become legally married by living together for a long period of time, representing themselves as a married couple and intending to be married. Contrary to popular belief, the couple must intend to be married and act as though they are for a common law marriage to take effect -- merely living together for a long time won't do it.

community property
A method for defining the ownership of property acquired during marriage, in which all earnings during marriage and all property acquired with those earnings are considered community property and all debts incurred during marriage are community property debts. Community property laws exist in Arizona, California, Idaho, Nevada, New Mexico, Texas, Washington, and Wisconsin. Compare equitable distribution and separate property.

community property with right of survivorship
A way for married couples to hold title to property, available in Arizona, California, Nevada, Texas and Wisconsin. It allows one spouse's half-interest in community property to pass to the surviving spouse without probate.

comparable rectitude
A doctrine that grants the spouse least at fault a divorce when both spouses have shown grounds for divorce. It is a response to an old common-law rule that prevented a divorce when both spouses were at fault.

competent evidence
Legally admissible evidence. Competent evidence tends to prove the matter in dispute. In a murder trial, for example, competent evidence might include the murder weapon with the defendant's fingerprints on it.

compilation
For copyright purposes, a work formed by selecting and assembling preexisting materials (generally facts or data unprotected by copyright) in a unique way to form an original work of authorship. A database is a good example of a compilation. A compilation must have some creative aspects -- such as the way it is organized and the materials selected for inclusion -- to qualify for copyright protection. For example, a list of favorite Web sites including the word "gelatin," arranged by category, would be rather creative, while a phone directory would not.

complaint
Papers filed with a court clerk by the plaintiff to initiate a lawsuit by setting out facts and legal claims (usually called causes of action). In some states and in some types of legal actions, such as divorce, complaints are called petitions and the person filing is called the petitioner. To complete the initial stage of a lawsuit, the plaintiff's complaint must be served on the defendant, who then has the opportunity to respond by filing an answer. In practice, few lawyers prepare complaints from scratch. Instead they use -- and sometimes modify -- pre-drafted complaints widely available in form books.

comprehensive insurance coverage
An element of car insurance that pays for damages to your vehicle caused by anything other than a collision, including vandalism, theft and natural disasters.

condemnation
See eminent domain.

conditions of carriage
The terms of your contract with an airline after you buy a ticket. Conditions of carriage cover everything from baggage limitations to the amount of compensation you can recover if you're injured on the flight. These provisions often vary from airline to airline. A few, but by no means most, conditions of carriage appear in the fine print on the back of your ticket. To find out about the rest, you can ask the airline for a copy; it is legally obligated to provide one. The conditions of carriage contain a lot of fine print detail and will not make for exciting reading.

condonation
One person's approval of another's activities, constituting a defense to a fault divorce. For example, if a wife did not object to her husband's adultery and later tries to use it as grounds for a divorce, he could argue that she had condoned his behavior and could perhaps prevent her from divorcing him on these grounds.

confidential communication
Information exchanged between two people who (1) have a relationship in which private communications are protected by law, and (2) intend that the information be kept in confidence. The law recognizes certain parties whose communications will be considered confidential and protected, including spouses, doctor and patient, attorney and client, and priest and confessor. Communications between these individuals cannot be disclosed in court unless the protected party waives that protection. The intention that the communication be confidential is critical. For example, if an attorney and his client are discussing a matter in the presence of an unnecessary third party -- for example, in an elevator with other people present -- the discussion will not be considered confidential and may be admitted at trial. Also known as privileged communication.

confine
See imprison.

confinement in prison
In most states with fault divorce, grounds for a spouse not in prison to obtain a fault divorce if the other spouse has been imprisoned for a certain number of years.

conformed copy
An exact copy of a document filed with a court. To conform a copy, the court clerk will stamp the document with the filing date and add any handwritten notations to the document that exist on the original, including dates and the judge's signature. A conformed copy may or may not be certified.

connivance
A situation set up so that another person commits a wrongdoing. For example, a husband who invites his wife's lover along on vacation may have connived her adultery, and if he tried to divorce her for her behavior, she could assert his connivance as a defense.

consanguinity
An old-fashioned term referring to the relationship of "blood relatives" -- people who have a common ancestor. Consanguinity exists, for example, between brothers and sisters but not between husbands and wives.

conservator
Someone appointed by a judge to oversee the affairs of an incapacitated person. A conservator who manages financial affairs is often called a "conservator of the estate." One who takes care of personal matters, such as healthcare and living arrangements, is known as a "conservator of the person." Sometimes, one conservator is appointed to handle all these tasks. Depending on where you live, a conservator may also be called a guardian, committee or curator.

consideration
The basis of a contract. Consideration is a benefit or right for which the parties to a contract must bargain; the contract is founded on an exchange of one form of consideration for another. Consideration may be a promise to perform a certain act -- for example, a promise to fix a leaky roof -- or a promise not to do something, such as build a second story on a house that will block the neighbor's view. Whatever its particulars, consideration must be something of value to the people who are making the contract.

Consolidated Omnibus Budget Reconciliation Act (COBRA)
A federal law requiring that employers offer employees -- and their spouses and dependents -- continuing insurance coverage if their work hours are cut or they lose their job for any reason other than gross misconduct. Courts are still in the process of determining the meaning of gross misconduct, but it's clearly more serious than poor performance or judgment. COBRA also makes an ex-spouse and children eligible to receive group rate health insurance provided by the other ex-spouse's employer for three years following a divorce.

consortium
(1) A group of separate individuals or companies that come together to undertake an enterprise or transaction that is beyond the means of any one member. For example, a group of local businesses may form a consortium to fund and construct a new office complex. (2) The duties and rights associated with marriage. Consortium includes all the tangible and intangible benefits that one spouse derives from the other, including material support, companionship, affection, guidance and sexual relations. The term may arise in a lawsuit if a spouse brings a claim against a third party for "loss of consortium" after the other spouse is injured or killed.

constable
A peace officer for a particular geographic area -- most often a rural county -- who commonly has the power to serve legal papers, arrest lawbreakers and keep the peace. Depending on the state, a constable may be similar to a marshal or sheriff.

constructive eviction
When a landlord provides housing that is so substandard that a landlord has legally evicted the tenant. For example, if the landlord refuses to provide heat or water or refuses to clean up an environmental health hazard, the tenant has the right to move out and stop paying rent, without incurring legal liability for breaking the lease.

Consumer Credit Counseling Service (CCCS)
A national non-profit agency that, at no cost, helps debtors plan budgets and repay their debts. One major criticism of CCCS is that each office is primarily funded by voluntary donations from the creditors that receive payments from debtors repaying their debts through that office. Despite this criticism, most CCCS counselors provide clients with thorough and neutral advice.

Consumer Leasing Act
A federal law that requires lease agreements to include certain terms, including a statement of the number of lease payments and their dollar amounts, penalties for not paying on time and whether a lump sum payment is due at the end of the agreement. Despite this law, many vehicle lease agreements are nearly impossible to decipher.

consummation
The actualization of a marriage. Sexual intercourse is required to "consummate" a marriage. Failure to do so is grounds for divorce or annulment.

contempt
See contempt of court.

contempt of court
Behavior in or out of court that violates a court order, or otherwise disrupts or shows disregard for the court. Refusing to answer a proper question, to file court papers on time or to follow local court rules can expose witnesses, lawyers and litigants to contempt findings. Contempt of court is punishable by fine or imprisonment.

contest
[as in to contest a will]To oppose, dispute or challenge through formal or legal procedures. For example, the defendant in a lawsuit almost always contests the case made by the plaintiff. Or, a disgruntled relative may formally contest the provisions of a will.

contingency
A provision in a contract stating that some or all of the terms of the contract will be altered or voided by the occurrence of a specific event. For example, a contingency in a contract for the purchase of a house might state that if the buyer does not approve the inspection report of the physical condition of the property, the buyer does not have to complete the purchase.

contingency fee
A method of paying a lawyer for legal representation by which, instead of an hourly or per job fee, the lawyer receives a percentage of the money her client obtains after settling or winning the case. Often contingency fee agreements -- which are most commonly used in personal injury cases -- award the successful lawyer between 20% and 50% of the amount recovered. Lawyers representing defendants charged with crimes may not charge contingency fees. In most states, contingency fee agreements must be in writing.

contingent beneficiary
1) An alternate beneficiary named in a will, trust or other document. 2) Any person entitled to property under a will if one or more prior conditions are satisfied. For example, if Fred is entitled to take property under a will only if he's married at the time of the will maker's death, Fred is a contingent beneficiary. Similarly, if Ellen is named to receive a house only in the event her mother, who has been named to live in the house, moves out of it, Ellen is a contingent beneficiary.

continuance
The postponement of a hearing, trial or other scheduled court proceeding, at the request of one or both parties, or by the judge without consulting them. Unhappiness with long trial court delays has resulted in the adoption by most states of "fast track" rules that sharply limit the ability of judges to grant continuances.

contraband
An item that is illegal to possess, produce or distribute.

contract
A legally binding agreement involving two or more people or businesses (called parties) that sets forth what the parties will or will not do. Most contracts that can be carried out within one year can be either oral or written. Major exceptions include contracts involving the ownership of real estate and commercial contracts for goods worth $500 or more, which must be in writing to be enforceable. (See statute of frauds.) A contract is formed when competent parties -- usually adults of sound mind or business entities -- mutually agree to provide each other some benefit (called consideration), such as a promise to pay money in exchange for a promise to deliver specified goods or services or the actual delivery of those goods and services. A contract normally requires one party to make a reasonably detailed offer to do something -- including, typically, the price, time for performance and other essential terms and conditions -- and the other to accept without significant change. For example, if I offer to sell you ten roses for $5 to be delivered next Thursday and you say "It's a deal," we've made a valid contract. On the other hand, if one party fails to offer something of benefit to the other, there is no contract. For example, if Maria promises to fix Josh's car, there is no contract unless Josh promises something in return for Maria's services.

conviction
A finding by a judge or jury that the defendant is guilty of a crime.

cookie
A piece of information that a website stores on a visitor's hard drive so that the website can retrieve the information when the visitor returns to the site. For example, a website may use a cookie to retrieve a visitor's name and address so the visitor doesn't have to enter that information again. A website can legally use cookies to personalize a visitor's experience, to track a visitor's movements on a site or to target a visitor for specific advertisements. Generally, a cookie cannot be used to corrupt or steal data, such as an email address, from a visitor's hard drive.

cooling-off rule
A rule that allows you to cancel a contract within a specified time period (typically three days) after signing it. Federal cooling-off rules apply this three-day grace period to sales made door-to-door and anywhere other than a seller's normal place of business, such as at a trade show. Another federal cooling-off rule lets you cancel a home improvement loan or second mortgage within three days of signing. Various states have cooling-off rules that sometimes apply even longer cancellation periods to specific types of sales, such as dancing lessons and timeshares.

cooperative insurance
Compulsory employment benefits provided by a state or federal government to ensure a minimum standard of living for lower and middle income people. Survivors benefits, disability benefits and health insurance are common examples. Also called social insurance.

copy
For copyright purposes, the physical form in which an expression is reproduced and retained over time, no matter how brief. Copies include such things as photocopies, computer disks and tape recordings. The exclusive right to prepare copies of an original work is one of the primary rights protected by a copyright.

copyright
A legal device that provides the owner the right to control how a creative work is used. A copyright is comprised of a number of exclusive rights, including the right to make copies, authorize others to make copies, make derivative works, sell and market the work and perform the work. Any one of these rights can be sold separately through transfers of copyright ownership.

copyright notice
The © symbol, plus the date of publication and the author's name. For works published in the U.S. after March 1, 1989, no copyright notice is required for copyright protection within the U.S. or any country that has signed the Berne Convention or GATT. A notice is still useful to remind others that the work is copyrighted, to steer a would-be user in the right direction to obtain permission to use the copyrighted material and to preclude a defense of "I didn't know it was copyrighted" if someone uses the copyrighted material without permission.

Copyright Office
A branch of the U.S. Library of Congress that oversees the implementation of the federal copyright laws, including issuing regulations and processing applications for the registration of copyrights.

copyright owner
Under the Copyright Act of 1976, a term with two meanings. First, it refers to the person or entity listed as the owner in the U.S. Copyright Office, usually the original author or developer. Second, it refers to a person or entity to which an exclusive part of the copyright has been transferred in writing. For instance, if Harry writes and copyrights a book, then sells the right to prepare a screenplay based on the book to a movie studio, both he and the studio are copyright owners.

copyright registration
Act required by the U.S. Copyright Office before a court action may be brought to prevent infringement. Copyright protection automatically attaches to any work of authorship as soon as it is fixed in a tangible medium of expression. Registration also confers strategic benefits in an infringement action, including a presumption that the registered owner is the rightful owner, as well as the ability to collect damages that often make the difference between an owner being able to afford litigation and having to forego his or her rights.

corporate resolution
A written document that describes an action taken by the board of directors of a corporation. For example, when a corporation issues a stock dividend, the declaration of the dividend is a corporate resolution.

corporation
A legal structure authorized by state law that allows a business to organize as a separate legal entity from its owners. A nonprofit is often referred to as an "artificial legal person," meaning that, like an individual, it can enter into contracts, sue and be sued and do the many other things necessary to carry on a business. One advantage of incorporating is that a corporation's owners (shareholders) are legally shielded from personal liability for the corporation's liabilities and debts (unpaid taxes are often an exception). In theory, a corporation can be organized either for profit-making or nonprofit purposes. Most profit-making corporations are known as C corporations and are taxed separately from their owners, but those organized under subchapter S of the Internal Revenue Code are pass-through tax entities, meaning that all profits are federally taxed on the personal income tax returns of their owners.

corpus delecti
Latin for the "body of the crime." Used to describe physical evidence, such as the corpse of a murder victim or the charred frame of a torched building.

cosigner
A person who signs his or her name to a loan agreement, lease or credit application. If the primary debtor does not pay, the cosigner is fully responsible for the loan or debt. Many people use cosigners to qualify for a loan or credit card. Landlords may require a cosigner when renting to a student or someone with a poor credit history.

cost basis
See basis.

counterclaim
A defendant's court papers that seek to reverse the thrust of the lawsuit by claiming that it was the plaintiff -- not the defendant -- who committed legal wrongs, and that as a result it is the defendant who is entitled to money damages or other relief. Usually filed as part of the defendant's answer -- which also denies plaintiff's claims -- a counterclaim is commonly but not always based on the same events that form the basis of the plaintiff's complaint. For example, a defendant in an auto accident lawsuit might file a counterclaim alleging that it was really the plaintiff who caused the accident. In some states, the counterclaim has been replaced by a similar legal pleading called a cross-complaint. In other states and in federal court, where counterclaims are still used, a defendant must file any counterclaim that stems from the same events covered by the plaintiff's complaint or forever lose the right to do so. In still other states where counterclaims are used, they are not mandatory, meaning a defendant is free to raise a claim that it was really the plaintiff who was at fault either in a counterclaim or later as part of a separate lawsuit.

counteroffer
The rejection of an offer to buy or sell that simultaneously makes a different offer, changing the terms in some way. For example, if a buyer offers $5000 for a used car, and the seller replies that he wants $5500, the seller has rejected the buyer's offer of $5000 and made a counteroffer to sell at $5500. The legal significance of a counteroffer is that it completely voids the original offer, so that if the seller decided to sell for $5000 the next day, the buyer would be under no legal obligation to pay that amount for the car.

County Attorney
See District Attorney.

court calendar
A list of the cases and hearings that will be held by a court on a particular day, week or month. Because the length of time it will take to conduct a particular hearing or trial is at best a guess and many courts have a number of judges, accurately scheduling cases is difficult, with the result that court calendars are often revised and cases are often heard later than initially planned. A court calendar is sometimes called a docket, trial schedule or trial list.

court costs
The fees charged for the use of a court, including the initial filing fee, fees for serving the summons, complaint and other court papers, fees to pay a court reporter to transcribe deposition and in-court testimony and, if a jury is involved, to pay the daily stipend of jurors. Often costs to photocopy court papers and exhibits are also included. Court costs must be paid by both parties as the case progresses, but ultimately, the losing party will be responsible for both parties' costs.

court order
See order.

covenant
A restriction on the use of real estate that governs its use, such as a requirement that the property will be used only for residential purposes. Covenants are found in deeds or in documents that bind everyone who owns land in a particular development. See covenants, conditions and restrictions.

covenants, conditions & restrictions (CC&Rs)
The restrictions governing the use of real estate, usually enforced by a homeowners' association and passed on to the new owners of property. For example, CC&Rs may tell you how big your house can be, how you must landscape your yard or whether you can have pets. If property is subject to CC&Rs, buyers must be notified before the sale takes place.

credit bureau
A private, profit-making company that collects and sells information about a person's credit history. Typical clients include banks, mortgage lenders and credit card companies that use the information to screen applicants for loans and credit cards. There are three major credit bureaus, Equifax, Experian and Trans Union, and they are regulated by the federal Fair Credit Reporting Act.

credit counseling
Counseling that explores the possibility of repaying debts outside of bankruptcy and educates the debtor about credit, budgeting, and financial management. Under the new bankruptcy law, a debtor must undergo credit counseling with an approved provider before filing for bankruptcy.

credit file
See credit report.

credit insurance
Insurance a lender requires a borrower to purchase to cover the loan. If the borrower dies or becomes disabled before paying off the loan, the policy will pay off the remaining balance. Federal and state consumer protection laws require the lender to disclose to existing and potential borrowers the terms and costs of obtaining credit insurance because it can affect the terms of the loan.

credit report
An account of your credit history, prepared by a credit bureau. A credit report will contain both credit history, such as what you owe to whom and whether you make the payments on time, as well as personal history, such as your former addresses, employment record and lawsuits in which you have been involved. An estimated 50% of all credit reports contain errors, such as accounts that don't belong to you, an incorrect account status or information reported that is older than seven years (ten years in the case of a bankruptcy).

credit shelter trust
See AB trust.

creditor
A person or entity (such as a bank) to whom a debt is owed.

crime
A type of behavior that is has been defined by the state, as deserving of punishment which usually includes imprisonment. Crimes and their punishments are defined by Congress and state legislatures.

crime against nature
Sodomy; oral or anal copulation.

criminal case
A lawsuit brought by a prosecutor employed by the federal, state or local government that charges a person with the commission of a crime.

criminal complaint
See information.

criminal insanity
A mental defect or disease that makes it impossible for a person to understand the wrongfulness of his acts or, even if he understands them, to ditinguish right from wrong. Defendants who are criminally insane cannot be convicted of a crime, since criminal conduct involves the conscious intent to do wrong -- a choice that the criminally insane cannot meaningfully make. See also irresistible impulse; McNaghten Rule.

criminal law
Laws written by Congress and state legislators that make certain behavior illegal and punishable by fines and/or imprisonment. By contrast, civil laws are not punishable by imprisonment. In order to be found guilty of a criminal law, the prosecution must show that the defendant intended to act as he did; in civil law, you may sometimes be responsible for your actions even though you did not intend the consequences. For example, civil law makes you financially responsible for a car accident you caused but didn't intend.

cross-claim
See cross-complaint.

cross-complaint
Sometimes called a cross-claim, legal paperwork that a defendant files to initiate her own lawsuit against the original plaintiff, a co-defendant or someone who is not yet a party to the lawsuit. A cross-complaint must concern the same events that gave rise to the original lawsuit. For example, a defendant accused of causing an injury when she failed to stop at a red light might cross-complain against the mechanic who recently repaired her car, claiming that his negligence resulted in the brakes failing and, hence, that the accident was his fault. In some states where the defendant wishes to make a legal claim against the original plaintiff and no third party is claimed to be involved, a counterclaim, not a cross-complaint, should be used.

cross-examination
At trial, the opportunity to question any witness, including your opponent, who testifies against you on direct examination. The opportunity to cross-examine usually occurs as soon as a witness completes her direct testimony -- often the opposing lawyer or party, or sometimes the judge, signals that it is time to begin cross-examination by saying, "Your witness." Typically, there are two important reasons to engage in cross-examination: to attempt to get the witness to say something helpful to your side, or to cast doubt on (impeach) the witness by getting her to admit something that reduces her credibility -- for example, that her eyesight is so poor that she may not have seen an event clearly.

cross-licensing
Businesses' sharing of patent rights through licensing agreements so that they can use each other's inventions.

cruelty
Any act of inflicting unnecessary emotional or physical pain. Cruelty or mental cruelty is the most frequently used fault ground for divorce because as a practical matter, courts will accept minor wrongs or disagreements as sufficient evidence of cruelty to justify the divorce.

cum testamento annexo
See administrator with will annexed.

curator
See conservator.

current monthly income
As defined by the new bankruptcy law, a bankruptcy filer's total gross income (whether taxable or not), averaged over the six-month period immediately preceding the bankruptcy filing. The debtor's current monthly income is used to determine whether the debtor can file for Chapter 7 bankruptcy, among other things.

curtesy
See dower and curtesy.

custodial interference
The taking of a child from his or her parent with the intent to interfere with that parent's physical custody of the child. This is a crime in most states, even if the taker also has custody rights.

custodian
A term used by the Uniform Transfers to Minors Act for the person named to manage property left to a child under the terms of that Act. The custodian will manage the property if the gift giver dies before the child has reached the age specified by state law -- usually 21. When the child reaches the specified age, he will receive the property and the custodian will have no further role in its management.

custody (of a child)
The legal authority to make decisions affecting a child's interests (legal custody) and the responsibility of taking care of the child (physical custody). When parents separate or divorce, one of the hardest decisions they have to make is which parent will have custody. The most common arrangement is for one parent to have custody (both physical and legal) while the other parent has a right of visitation. But it is not uncommon for the parents to share legal custody, even though one parent has physical custody. The most uncommon arrangement is for the parents to share both legal and physical custody.

cybersquatting
Buying a domain name that reflects the name of a business or famous person with the intent of selling the name back to the business or celebrity for a profit. The Anticybersquatting Consumer Protection Act of 1999 authorizes a cybersquatting victim to file a federal lawsuit to regain a domain name or sue for financial compensation. Under the act, registering, selling or using a domain name with the intent to profit from someone else's good name is considered cybersquatting. Victims of cybersquatting can also use the provisions of the Uniform Domain Name Dispute Resolution Policy adopted by ICANN, an international tribunal administering domain names. This international policy results in arbitration of the dispute, not litigation.