Glossary

acceptance

To agree to an offer, forming a contract. Acceptance can be verbal, in writing, or an action.

act of God

An unforeseen event that is not within the control of a party to a contract that prevents the party from performing their obligations under the contract.

addendum

An addition to a completed written document.

adjournment

Delay or reschedule a court hearing to another day.

advance directive

Written instructions about what health care a person wants or does not want in the future if a decision needs to be made and they’re incapable of making it. Learn more.

affidavit

A document where a person makes statements about facts they say are true. The document must be sworn in front of an authorized person, such as a lawyer, a notary public, or certain court or government officers.

agent

A person acting on behalf of someone else to create legal relations with others.

amortization period

The length of time to pay off a whole mortgage, if the interest rate remained constant. A typical amortization period for a new mortgage is 25 years.

annual percentage rate of interest

How much it costs to borrow money for one year, expressed as a percentage. A rate of 20% means that it costs $20 to borrow $100 for one year.

annulment

A court order declaring a marriage invalid.

appraisal

A report from an expert on the value of something.

arbitrator

A specially trained person appointed to resolve a dispute. Similar to a judge, they hear the evidence and listen to the arguments of each party, and then make a decision resolving the dispute.

arrears

Payments that were due but have not yet been paid.

arrest warrant

An order from a court that gives the police the power to arrest someone.

assets

Anything a person owns that has value. Assets can include things such as money, land, investments, and personal belongings such as jewelry and furniture.

assign

To transfer your legal rights or obligations to somebody else.

assignment in bankruptcy

A legal document that’s the starting point for a voluntary bankruptcy. Only a licensed insolvency trustee can file an assignment in bankruptcy. Learn more about declaring bankruptcy.

assumable mortgage

A mortgage that may be transferred without changing the terms of the original mortgage. (A mortgage is a legal agreement in which a person borrows money to buy real property, such as a home, and gives the lender a security interest in the property.)

attorney

A person legally appointed or empowered to act on behalf of another person.

authorized user

Someone who’s allowed to use another person’s account but isn’t liable for charges to the account.

autopsy

A thorough medical examination of a body after death. It may be done to find out how or why a person has died, or to learn about a disease or injury.

averaging agreement

An agreement between an employer and a worker that deals with hours of work and overtime. The agreement allows a worker’s hours to be averaged over a period of one to four weeks. A worker may agree to work up to 12 hours in a day, averaging 40 hours in a week, without being paid overtime.

bailiff

A person hired by a creditor to carry out tasks such as repossessing property. Licensed bailiffs act where money is owed under an agreement. Court bailiffs carry out court orders on behalf of creditors.

balance

When talking about money, the balance is the amount of money a person has in a bank account or owes to a creditor. For example, the balance on a credit card is the total amount of money owed.

bankruptcy

A legal process where a person gives up most of their property in exchange for getting rid of (most of) their debts. Learn more about declaring bankruptcy.

beneficiary

A person who is to receive money or property in a will, registered account, or insurance policy.

biometrics

Personal information used to prove your identity (for example, your fingerprints).

breach of contract

If a party does not do what they said they would in a contract.

budget

A plan setting out how a person will spend money over a period of time. It shows all the money expected to be earned (income) and spent (expenses) during that period.

builders lien

A charge against title to property being built or renovated. A contractor, subcontractor or worker can file a builders lien claim if they are not paid for work done or materials supplied for a construction or renovation project. Learn more.

bylaw

A rule that an organization (such as a non-profit society or a strata property) makes and that its members must follow. (This is different from a bylaw that a local government makes.)

Canada Pension Plan

A pension plan run by the federal government that pays benefits to workers or their families once the worker retires, is disabled, or dies. The amount of the benefits depends on how much someone contributed to the plan.

Canada Revenue Agency

The government agency that manages the income tax process. They’re also responsible for some social benefits, like the Canada child benefit and the child disability benefit. Visit the CRA website.

capacity

A person’s ability to make their own choices and decisions.

catphishing

When someone assumes a fake identity to lure another person into an emotional or romantic relationship with them, so they can trick them out of their money.

caveat

A legal notice that lets others know there may be a problem, dispute, or competing claim that needs to be dealt with first.

certificate of divorce

A document issued by the court that confirms a divorce is final and states the date it took effect. A certificate of divorce is commonly used as proof of divorce when applying for a marriage licence or updating government records.

closed mortgage

A mortgage that has restrictions on making extra payments or paying off the mortgage before the term is complete.

co-sign

A promise a person makes to be responsible for the legal obligations of someone else.

co-signer

A person who signs a legal document (such as a loan or contract) jointly with another person.

codicil

A legal document created after a will that changes some conditions in the will.

collateral

Property given or promised to someone to make sure a loan is paid back or a promise is kept.

collection agent

Someone who in the course of business collects debt for other parties.

collective agreement

When a workplace includes workers who belong to a union, a collective agreement sets out the conditions of employment. These typically include wages and benefits, hours of work, duties of workers and the employer, and a process to resolve disputes.

commercial lien

A legal right that allows service providers to hold onto a customer's property as security for payment.

committee

A person or body (such as the Public Guardian and Trustee) appointed by the court to make legal, financial and medical decisions for someone who is mentally incapable and cannot manage their own affairs.

common law

A body of law based on judges' decisions and on custom rather than on laws made by a legislative body.

compensatory damages

A money award to put a person in the position they would have been in if another party had not injured them.

condition

An essential term in a contract; a term that is so important that without it one or other of the parties would not enter into the contract.

conduct of sale

A court order that gives a creditor the right to oversee the sale of a property in a foreclosure action. (A lender can bring a foreclosure action when a property owner defaults under a mortgage.) 

conflict of interest

A situation in which a person has competing interests or loyalties.

consideration

Something of value that is given or paid by a party to a contract.

consolidation loan

When a debtor combines most or all of their debts into a single, new loan.

constructive dismissal

When an employer makes a fundamental change to a worker's job situation and the worker doesn't agree or accept it. Being constructively dismissed is the legal equivalent of being fired for no reason. Learn more.

consumer proposal

An offer made by a debtor to pay creditors a portion of what they’re owed. A consumer proposal is a formal, legally binding process overseen by a licensed insolvency trustee. Learn more.

contingency fee

A fee for services of a lawyer, a contingency fee depends on whether the client wins their case. If the client wins, the lawyer gets part of the money awarded. If the client loses, they don’t pay the lawyer any fee (but still pay out-of-pocket expenses).

continuing services contract

A contract where services are received and payments are made on an ongoing basis. Special rules apply to continuing services contracts.

contract

A legally recognized agreement made between two or more people.

contributory negligence

Where a claimant’s own negligence contributed to their loss or damage. When a claimant is found contributorily negligent, their damages are reduced by the percentage of fault assigned to them.

cooling-off period

A period of time after signing a contract during which the buyer can change their mind for any reason and cancel the contract for a full refund. Not all contracts have cooling-off periods, or the same cooling-off period. Learn more.

copyright

The right to produce, reproduce, publish or perform an original creative work.

coroner

An appointed official who investigates all unnatural, sudden or unexpected deaths in British Columbia.

counterclaim

In a lawsuit, a claim made to offset another claim.

counteroffer

A response to a contract offer that makes any material change in the terms of the offer.

court bailiff

A government-appointed bailiff company that creditors can hire to carry out court orders on their behalf.

credit

When a person gets money, goods or services now in exchange for a promise to pay it back later.

credit card

A card that allows a person to pay for things based on a promise to pay later.

credit counselling agency

An agency that helps people better manage their money and debt.

credit counsellor

Someone who helps people manage their finances and reduce their debt.

credit file

A collection of information about a person’s history of borrowing money and paying bills. A credit reporting agency includes information from a person’s credit file to create a credit report.

credit monitoring

A service of periodically checking a credit report for accuracy and fraudulent activity.

credit report

A detailed list of a person’s history of paying bills and borrowing money, and other information about them.

credit reporting agency

A business that keeps a record of a person’s credit history, in the form of a credit report. It also calculates a person’s credit score. The two main credit reporting agencies in Canada are Equifax and TransUnion.

credit score

A number between 300 and 900 that reflects the information in a person’s credit report. The score indicates how likely a person is to pay back their debts. High credit scores are good, and low credit scores are bad. Lenders use a person’s credit score to decide whether to lend them money. Learn more.

credit union

A non-profit cooperative association that provides banking services to its members. The services include providing savings and checking accounts, loans, and credit cards.

creditor

A person or business another person owes money to.

cremation

Using extreme heat and processing to turn a body after death into sand-like ashes.

curber

A person who sells cars to try to earn income but has not been licensed as a car dealer.

damages

Compensation paid to a person for loss or injury. In some cases, damages also punish the other party for their conduct.

death certificate

A certified extract of the registration of death. Survivors need to provide a death certificate to apply for benefits and to settle the legal and business affairs of the deceased.

debt collector

A person who is collecting or attempting to collect a debt. This includes a collection agent.

debt repayment plan

An arrangement where a debtor deposits money in an account that’s used to pay their creditors. It’s a way of consolidating debts.

debt settlement

A settlement of a person’s debts negotiated with their creditors. The settlement is typically a lump-sum amount that’s less than the full value of the debts.

debtor

Someone who owes money.

deductible

In an insurance policy, the deductible is an amount of money the policy holder is responsible for paying toward an insured loss.

defamation

Communication about a person that tends to hurt their reputation. Learn more.

default

When a person doesn't do something they legally agreed to do. For example, defaulting on a loan means that a person didn't pay back some or all of the money that they owed in the time they were supposed to pay it.

demand letter

A letter that says what a party to a dispute thinks the other party did wrong, and what they can do to resolve the situation.

device subsidy

The difference between the retail price of a phone handset and the amount a customer pays for the phone when they agree to a cellphone contract.

direct sales contract

A contract that is entered into in person at a place other than the seller’s permanent place of business. Special rules apply to direct sales contracts.

disability assistance

A disability benefit available to those with a persons with disability (PWD) designation, which recognizes they have a severe mental or physical impairment that restricts their ability to perform daily living activities. Learn more.

disability benefits

Welfare benefits that provide targeted help to people facing health struggles that make it very difficult for them to work or to do certain daily living activities. The two main disability benefits are disability assistance (also called PWD benefits) and PPMB benefits (benefits for persons with persistent multiple barriers to employment). Learn more.

discharge

In a bankruptcy, a discharge releases the bankrupt person from their debts. It ends the bankruptcy process.

discrimination

When a person is treated badly or unfairly because of parts of their identity protected under human rights law. Examples include a person’s race, sex, sexual orientation, age, or disability. Learn about discrimination in various contexts.

disposition permit

A permit to dispose of human remains or cremated human remains in British Columbia.

distance sales contract

A contract that is entered into not in person (for example, online or over the phone) and there is no opportunity to inspect what is being bought. Special rules apply to distance sales contracts.

divorce order

A court order that legally ends a marriage. A divorce order takes effect 31 days after it's issued, at which point both former spouses are free to remarry.

down payment

A part of the purchase price paid at the time of purchase, with the balance to be paid later.

In a real estate transaction, the down payment is the part of the purchase price personally paid by the buyer. The balance of the purchase price is typically paid by a lender (with the buyer paying the lender back over time).

DPSP

A type of pension plan for workers. On a periodic basis, the employer shares profits made from the business with all workers or a designated group of workers.

duress

Forcing a person to behave in a certain way by harming them or threatening to harm them.