The term that describes a duty that is enforced by a court and where non-fulfilment may incur a penalty.

A legal document, usually in writing, giving details of a formal legally binding agreement, between two or more different people or groups. To be legally binding it must contain certain elements: it must contain an offer made by one party and accepted in its entirety by the other, it must include some form of consideration whether it be money, goods or services, and it must be properly signed by all parties to it, and dated.

A contract in which all elements of a contract are specifically stated (offer, acceptance and consideration), and the terms are set out, as compared with an implied contract in which the existence of the contract is assumed by the circumstances.

Also referred to as a mortgage loan, is used by purchasers of real property to raise capital for the purchase, or by existing owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is secured on the borrower’s property, putting in place a legal mechanism which will enable the lender to take possession and sell the secured property to pay off the loan in the event that the borrower defaults on the loan or otherwise fails to abide by its terms.

Is the investigation of a business or person prior to signing a contract. A common example of due diligence in various industries is the process through which a potential buyer evaluates a target company or its assets for an acquisition.

The right to use and derive profit from a piece of real property belonging to another, provided the property itself remains undiminished and undamaged in any way. There is no transfer of legal title and a usufruct can be granted for the holder’s lifetime or a shorter term.

Significant enough substantial failure in the performance of a contract, as to give the affected party the right to sue for damages as well as release the aggrieved party from its obligations.

Is deliberate deception to secure an unfair or unlawful gain. It is both a civil wrong (a fraud victim may sue the fraud perpetrator to remedy the fraud and/or recover compensation) and a criminal offence (a fraud perpetrator may be prosecuted and imprisoned by the government authorities).