Some important Economic and Legal Terms

Affidavit: A statement of declaration made on oath and signed before officer authorized to administer oath. ³¹¹ ° Assignment: The transfer of an interest in someone else’s favor. All-right reserved: This is said of books and trademarks. No one Ran then copy it.

Attachment: Taking over the property or assets under orders of court.

At sight: Refers to the bills exchange, which are payable on demand.

Balance Sheet: The statement of account of a firm or a person showing

He affairs and equilibrium between assets and liabilities; profit and loss.

Bank Rate: It is the rate of interest charged by the Reserve Bank of India (RBI) for lending money to commercial banks.

Bill of exchange: An unconditional order in writing addressed by one person (called the drawer) to another person (called the drawing) requesting the person to whom it is addressed to pay on demand or after a fixed or determinable time a definite sum of money to the order of a third person (called a payee).

Bond: A document whereby a person, a corporation or even government agrees to pay the specified sum on a determined date.

Capital: The amount of money invested in an organization. It would in due course mean, cash in hand, stocks, furniture, securities, buildings, etc.

Contempt of Court: It means disobedience of judgment or order of a court.

Copyright: Exclusive right of an author in his works, forbidding others from unauthorized use of the material in his works.

Credit Note: It is an acknowledgement by a seller or a sum due to the purchaser.

Crossed Cheque: cheques whereas two parallel lines have been put such a cheque becomes payable only to the payee.

Days of Grace: Period of 3 days allowed after the payment has become due.

Decree: Decision-or judgement having the force of law. Deed: An instrument signed and sealed purpborting to convey an Merest in real property from one person to another.

Dishonour: The refusal by one on whom a bill of exchange is drawn t0 pay or accept the bill in accordance with the terms of the instrument.

Depreciation: Depreciation means fall in money value indicating ‘inflationary conditions and high prices.

Estopple : A legal term indicating that a person is barred from a legal remedy because of some former act which precludes him of the right.

Floating Debts: Short term government obligation to cover temporary need for ready cash.

Gift Tax: It is a tax on gifts. Its purpose is to prevent evasion 0f Estate Duty by genuine or fictitious gifts.

Indirect Tax: A tax collected indirectly in the form of excise duties etc. levied on the articles of daily consumption.

Inflation: Increase in the quantity of money in circulation with_0ut corresponding increase in purchasing power. It results in abnormal price rise.

Joint Sector: It refers to a sector which is jointly owned, managed and run by both public and private sectors. It is a partnership between the two sectors.

Lieu: Legal rights of a person to detain or control property belonging to someone else until charges against the property have been cleared.

Letter of Credit: This term of banking is used in important trade. In order to ensure a consignor that the consignee would honour the document; the consignor demands of the consignee (importer) a letter of credit. The banks open a letter of a credit i.e., undertake a responsibility of it to honour the document against a certain percentage. Immediately on arrival of the documents the bank pays the amount and an arrival of the documents the bank pays the amount and takes possession of the goods. The deal is between the bank and the importers.

Legal Tender: Money in any form which a creditor cannot refuse in payment of debt.

Limited Company: A Registered Company in which the liability of each share-holder is limited to the extent of his/her share in it.

Lockout: Closure of a factory by employers when there is a labour dispute and fear of damage to machinery and property.

Log book: A book of record in which daily proceedings are recorded.

Manifest: A complete list of all packages comprising the cargo of ship with particulars of contents, sender’s name, marks etc.

Mixed Economy: It is that system of Economic Planning under which both private as well as public sectors are given equal opportunity for full development in their respective spheres.

Monopoly: It exists when there is only one seller of a product m a market.

Motel: It is type of a hotel built for touring motorists providing all hotel facilities and garage accommodation for vehicles.

National debt: It is the money borrowed by the country when it18 unable to meet its own expenditure from its own resources.

Nationalization: The act of taking over an undertaking by to Government as the Nationalisation of Insurance Companies. J|

Need-based Wages: Wages enough to cover the basic needs of wage-earners such as distinguished from wages determined on the basis availability of labour, productivity and profitability.

Negotiable Instruments: Bill of Exchange, cheques, pronotes, ants of payments, bonds, hundies are all classed as Negotiable rumens. Payment of such an instrument passes on to the holder Octopi: Tax imposed on articles coming inside a city.

Overdrawn: Said of an account where the payments made exceed the deposits made.

Per Capita Income: It is the average income of an individual wage-earner in a country in one year.

Post Dated Cheque (PDC): Said of a cheque which bears date and becomes payable as such later than the date of issue.

Power of Attorney: The power invested in a person by which they are legally authorised to act for another. For example a solicitor appears in court of law for another person and then calls a barrister to plead the case.

Preference Shares: Special type of shares, dividend on which, of course, fixed is paid in the first instance.

Pronote: A written promise to pay on demand or at a specified future time a sum of money to a person specified or to his order or to bearer.

Public Sector: All undertakings financed and controlled by the government.

Royalty: A payment made for some transference of a privilege. Security: A guarantee in the form of cash, bonds, property, etc., kept as pledge for repayment of debt or protection against financial loss.

Seller’s Market: A market where goods and services are scarce and the prices are relatively high.

Self Generating Economy: If the economy of a country moves without any external assistance, it is known as self generating economy.

Super Tkx: A special tax levied over and above the normal income tax on an income exceeding a certain limit.

Surrender Value: It means the value acquired by an insurance policy when it is surrendered to the insurer.

Sight: Said in relation to bills of exchange payable when received and on which no days of grace is allowed.

Soft Currency: The currency of a country in relation to which there was a favourable balance of trade or a favourable balance of payments and, therefore, readily available.

Summon: A written notification, delivered for a person to appear in a certain court at a certain time Unless a man is issued a summon, no action can be taken against him.

Trade Mark: It is the name, sign or mark given to a particular product “the company. Trade marks should not be copied. Infringement of this is Punishable.

Turnover: The total value of the sales made by a company or a firm one accounting year is called the turnover.

Visa: An entry on a passport certifying that the person may be allow h to enter the country.

Will: A legal document by which a person disposes of his assets on death.