Glossary of Legal Terms

Legal letters, contracts and court documents use words most people first meet when a dispute, a death or a separation forces them to. This glossary explains 120 of those terms in plain English, across 10 key areas of law that we practice, from wills and family law to insolvency, employment and migration.

Each definition reflects the law in Victoria, Queensland and at the federal level. Where the two states use different terms, we list both. 

Use the menu below to jump to a section. Note: These definitions provide general information and are not legal advice. For advice on your situation,
BOOK A CONSULT with our Melbourne or Brisbane lawyers.

Sections:

General Legal Terms
Litigation
Insolvency
Wills & Estates
Family Law
Property Law
Commercial & Business Law
Employment Law
Owners Corporation Law
Migration Law
Types of Courts & Jurisdictions
Additional Resources
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General Legal Terms

These terms are used across many different areas of law, including legal advice, documents, negotiations and dispute resolution. Some also commonly appear in court and tribunal proceedings.

Affidavit
A written statement of facts sworn or affirmed to be true and used as evidence.

Applicant
The person or organisation that starts a court or tribunal proceeding.

Conflict of Interest
A situation where competing interests or duties may affect independent professional judgment.

Costs
The legal fees and expenses incurred in dealing with a legal matter or proceeding. Before work begins, we provide clients with a Costs Document setting out which legal costs will be charged and where possible, an estimate of the total costs. See example: What is the average cost of divorce in Victoria?

Deed
A formal legal document that creates, records or confirms binding obligations between parties. Deeds are often used where greater formality or certainty is required and must meet specific requirements to be legally valid. Original deeds may be kept securely on file at our office for safekeeping.

Disclosure
The process of providing relevant information or documents to another party. It can also refer to the improper release of information in the form of a privacy breach. This example relates to an unintentional disclosure of personal medical information at work. 

Legal Professional Privilege
Protection that keeps certain confidential communications between a client and their lawyer from disclosure.

Respondent
The person or organisation required to respond to a court or tribunal proceeding.

Settlement
An agreement that resolves a dispute without requiring a final court decision and wide variety of legal matters, including Property Settlement in Family Law, a Settlement as a result of an Employment Law dispute, Litigation matters, Commercial Law and Conveyancing.

Subpoena
A court-issued document requiring a person to give evidence or produce documents. The request for information must be specific, otherwise a court may set the request aside as a "fishing expedition" (fishing for evidence).

Undertaking
A formal promise to another party, to do something specific, or to refrain from doing it.

Without Prejudice
A term (or label) indicating that genuine settlement discussions between parties are generally protected from being used as evidence in future.

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Litigation

These terms are commonly used when disputes are assessed, negotiated, settled or taken to court. They appear in correspondence, court documents, settlement negotiations and procedural steps throughout a matter. Find out more on our Litigation & Insolvency team page.

Alternative Dispute Resolution (ADR)
Processes used to resolve disputes outside a final court hearing, including mediation and arbitration.

Calderbank Offer
Derived from the case Calderbank v Calderbank [1975] All ER 333, this is a written settlement offer that cannot be used in court as evidence, but may affect later court decisions about legal costs.

Cause of Action
The legal basis on which a person or organisation brings a claim against another party.

Discovery
The process of identifying and exchanging documents relevant to issues in a legal proceeding.

Injunction
A court order requiring a person to do, or stop doing, something.

Interlocutory Application
An application for temporary or procedural orders before a matter is finally resolved.

Letter of Demand
A formal written demand seeking payment or another remedy before further legal action is taken. (a.k.a Notice of Demand).

Limitation Period
The legal time limit for starting a claim or court proceeding.

Pleadings
Formal court documents setting out the claims, defences and key facts relied upon by each party.

Summons
A formal legal document requiring a person to appear before a court or tribunal, often to give evidence or produce documents. (These must be taken seriously and not ignored, for example during a liqduiation.

Release
An agreement giving up certain legal claims or rights, often as part of a settlement.

Settlement Deed
A formal binding document recording the terms agreed to resolve a dispute.

Settlement Offer
A proposal to resolve a dispute without requiring a final court decision.

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Insolvency

These terms relate to when companies, directors, creditors and individuals are experiencing financial distress. They appear in restructuring, debt recovery, formal insolvency appointments and related legal proceedings. Find out more on our Litigation & Insolvency team page.

Administrator
An independent person appointed to take control of an insolvent company and assess its options, including restructuring the business or winding it up. (They commonly work for Insolvency Firms that manage the process).

Bankruptcy
A formal legal process for dealing with an individual who cannot pay their debts.

Bankruptcy Notice
A formal notice requiring payment of a judgment debt and potentially leading to bankruptcy proceedings.

Deed of Company Arrangement (DOCA)
A binding agreement setting out how a company’s affairs and debts will be dealt with.

Director Penalty Notice (DPN)
An ATO notice that can make directors personally liable for certain unpaid company tax and superannuation obligations.

Insolvent Trading
When a company incurs debts while unable to pay them as they become due.

Mothership Proceeding
In the insolvency context a mothership proceeding involves a plaintiff, generally a liquidator, issuing a single proceeding in court, in respect of multiple unfair preference claims.

Liquidation
The process of winding up a company, selling assets and distributing available funds to creditors.

Proof of Debt
A formal claim submitted by a creditor in an insolvency process.

Receivership
A process where a receiver takes control of assets, usually to recover money for a secured creditor.

Statutory Demand
A formal demand requiring a company to pay or secure a debt within the required period (example).

Unfair Preference
A payment giving one creditor an advantage over others shortly before a company becomes insolvent (example).

Voluntary Administration
A process where an administrator assesses an insolvent company’s future and possible restructuring options (Employee entitlements in Voluntary administration example).

Winding Up
The formal process of ending a company’s operations and dealing with its remaining assets and liabilities (Shareholder as a creditor example, Opposing Wind-up application example).

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Wills & Estates

These terms are often used when planning estates, preparing wills and powers of attorney, and administering a deceased person’s affairs. They also appear in probate applications, estate disputes and claims against an estate. Find out more on our Wills & Estates team page.

Beneficiary
A person or organisation entitled to receive assets or benefits under a will, trust or estate.

Contesting a Will
Challenging a will or seeking further provision from an estate through a legal claim - example What are the grounds for contesting a will?, (a.k.a Estate Litigation).

Estate Litigation
Legal disputes involving a deceased person’s Will or estate, including challenges to a Will or claims for further provision from an estate, including Family Provision Claims.

Enduring Power of Attorney (EPOA)
A document appointing someone to make financial or personal decisions if the appointor loses decision-making capacity.

Executor
The person appointed in a will to carry out its instructions and administer the estate.

Family Provision Claim
A claim by an eligible person seeking further provision from a deceased estate. (a.k.a Part IV claim). (Successful claim example). Other Provision Claims may be made as part of Estate Litigation.

Family Trust
A legal arrangement where a trustee holds and manages assets for the benefit of members of a family or other nominated beneficiaries. Often arranged during Estate Planning, or as a result of a Testamentary Trust being created upon the death of a Willmaker. Note: there are new tax rules which may impact the creation of discretionary trusts.

Intestate
Dying without a valid Will, or without a Will that deals with the entire estate. Intestacy laws determine how the affected estate is distributed among eligible family members or other beneficiaries.

Letters of Administration
Court authority allowing an administrator to manage an estate where the deceased did not leave a will, or if there was a will, no executor is available or willing to act.

Probate
The court process confirming a will and authorising the executor to administer the estate.

Special Disability Trust
A type of trust that allows families to put aside funds or other assets to support the accommodation and future care needs of a person with a severe disability.

Testamentary Capacity
The mental capacity required for a person to make or change a valid will.

Testamentary Trust
A trust created by a will to hold and manage assets for beneficiaries after death.

Will
A legal document recording how a person wants their estate dealt with when they pass away. It is a very private document, and usually not seen until the Will-makers' death. See: How do I see a person's will?

Will-maker (Testator)
The person who makes and signs their own Will.

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Family Law

These terms are frequently used when advising on relationships, separation, parenting arrangements and the division of property and finances. They appear in negotiations, agreements, court orders and dispute resolution processes throughout a family law matter. Find out more on our Family Law team page.

Financial Agreement
An informal agreement between parties about how financial matters, such as property, assets or maintenance, will be dealt with. If it has not formally made legally binding, the agreement may be open to later dispute.

Binding Financial Agreement (BFA)
A private agreement setting out how property, finances or maintenance will be dealt with between two parties, where both have sought legal advice. A BFA applies to both married couples and de facto couples and can be made before ("pre-nup"), during ("post-nup"), or after a marriage or de facto relationships.

Child Support
Payments or financial arrangements between separated/divorced parents to help cover the costs of raising their children.

Consent Orders
Court orders made with the agreement of the parties, which are legally binding once approved.

Entitlements
The legal rights a person may have to property, financial support or other benefits arising from a relationship, separation or divorce. These entitlements are negotiated, determined or formalised as part of the family law process. 

De Facto Relationship
A relationship recognised by law where two people live together as a couple without being married. A Divorce does not apply when ending a de facto relationship, but property settlements and financial agreements may be required for any couple when they separate permanently. Note: in some circumstances a de facto couple may not have lived under the same roof, and it is possible to have been in multiple de facto relationships, and a de facto relationship does not automatically justify a division of property in a settlment.

Divorce
The legal process that formally ends a marriage. Key tips: Divorce in Australia: What You Need to Know, Step-by-Step Guide.

Family Dispute Resolution (FDR)
A process where an independent practitioner helps parties resolve parenting or other family law disputes.

Financial Disclosure
The process of providing relevant financial information and documents to the other party. In Family Law, full and frank disclosure' is required to ensure both parties full understand the financial situation, so a fair outcome can be achieved. 

Financial Intermingling
The combining or sharing of finances in a relationship, such as joint bank accounts, jointly owned property or shared expenses. It is one factor considered when determining whether a de facto relationship exists.

Liability / Liabilities (Financial Obligations)
During a financial settlement or property settlement, there are usually assets (positive values) and liabilities (negative values) like mortgages, personal loans, credit cards, other debts or future costs to be totaled up, and divided between the two parties. The disagreements and negotiation about these points and what is "fair" is a common part of Family Law. Example: What happens to your HECS debt when you separate? Example: Spousal Maintenance.

Parenting Arrangements
Arrangements for a child’s care, living arrangements and time with each parent, which may be agreed informally or formalised through a Parenting Plan or Parenting Order. Note: Child Support is the term for regular financial payments, and is formalised separately to Parenting Arrangements, which focus on what, when, who, how, where of how children are looked after.

Parenting Plan
A written agreement between parents about the care and living arrangements of their children. Note that a parenting plan is not legally enforceable in the way that a Parenting Order issued by a court is.

Parenting Order
A court order setting out arrangements for a child’s care, living arrangements or time with parents.

Pre-nup (Pre-nuptial and Post-nuptial Agreements)
Common terms for Binding Financial Agreements, made before or during a marriage, setting out how property, finances or maintenance will be dealt with if the relationship ends.

Property Settlement
The process of dividing assets, liabilities and financial interests after a relationship ends. This can also include splitting Superannuation interests. 

Separation
The ending of a marriage or de facto relationship, whether or not the parties live apart.

Spousal Maintenance
Financial support paid by one former partner to the other following separation, where they are unable to adequately support themselves and the other party has the financial capacity to assist. The amount and duration depend on the parties’ circumstances. (The term you may have heard on American TV shows for this is "alimony payments").

Superannuation Splitting
Process of dividing up superannuation as part of an asset pool during a divorce or separation: Example: Navigating Super splitting, What happens to my superannuation after a Separation or divorce?

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Property Law

These terms are commonly used in property sales, purchases, leasing and matters involving interests in land. They appear in contracts, title documents, disclosure statements and the transfer of property ownership. Find out more on our Property Law team page.

Adjustment of Outgoings
The calculation and apportionment of property expenses between buyer and seller at settlement.

Caveat
A notice recorded on title to protect a claimed interest in land and restrict certain dealings.

Caveatable Interest
A legal or equitable interest in land that may support the lodging of a caveat.

Covenant
A a written agreement that limits the way land can be used and developed. It is often applied when an owner subdivides land and wants to restrict the use and development of the lots.

Contract of Sale
The agreement setting out the terms and conditions for buying and selling property.

Conveyancing
The legal process of transferring property ownership from one party to another.

Easement
A legal right to use another person’s land for a specific purpose, but not to take ownership.

Encumbrance
A legal right, interest or restriction affecting the ownership, use or transfer of property. Examples of encumbrances include mortgages, easements, covenants, Section 173 Agreements and caveats.

Make Good
A tenant’s obligation to restore leased premises at the end of a lease.

Property Dispute
Disagreements over property can arise between neighbours, co-owners, owners corporations, tenants, landlords or other parties. They may be resolved through negotiation, mediation or legal proceedings, often heard at VCAT.

Restrictive Covenant
A restriction registered on title that limits how land may be used or developed.

Section 32 Statement (Vendor's Statement)
A disclosure document which a Victorian seller must provide before a buyer signs a property contract.

Title Search
A search of land records to confirm ownership and identify registered interests or restrictions affecting property.

Transfer of Land
The document and registration process used to change legal ownership of land.

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Commercial Law & Business Law

These terms refer to structuring, operating, buying and selling businesses. They appear in commercial contracts, transactions, negotiations and advice about business ownership and obligations. Find out more on our Commercial Law team page.

Commercial Law often relates to transactions and complex planning, and Business Law often relates to the legal terms used in the day-to-day operations of a company, but in most cases the term “Commercial Law” covers both areas.

Asset Sale
A transaction where selected business assets are sold without transferring ownership of the company.

Business Sale Agreement
The contract setting out the terms for buying or selling a business.

Directors' Duties
Legal obligations directors owe when managing a company and making decisions on its behalf.

Due Diligence
The review of legal, financial and operational information before a major transaction or investment.

Heads of Agreement
A document recording key commercial terms before the parties enter a more detailed agreement.

Mergers and Acquisitions (M&A)
Transactions involving the purchase, sale, merger or combination of businesses or companies.

Restraint of Trade
A clause limiting certain competitive activities after employment, business ownership or a sale ends.

Services Agreement
A contract setting out the terms on which one party provides services to another.

Share Sale
A transaction where ownership of a company changes through the sale of its shares.

Shareholders' Agreement
An agreement governing the rights, responsibilities and relationships between a company’s shareholders.

Supply Agreement
A contract setting out the terms for supplying goods or products between parties.

Unfair Contract Terms
One-sided contract terms that may cause significant imbalance and be prohibited or unenforceable under Australian law.

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Employment Law

These terms are normally used when managing employment relationships, workplace issues and the ending of employment. They appear in contracts, workplace policies, negotiations, investigations, disputes and Fair Work processes. Find out more on our Employment Law team page.

Adverse Action
Action taken against someone for an unlawful reason connected with a workplace right or protected attribute.

Deed of Release
A formal agreement resolving an employment dispute and releasing specified legal claims.

Employment Contract
An agreement setting out the terms and conditions of an employment relationship.

Enterprise Agreement
A registered agreement setting employment conditions for employees within a particular business or organisation.

General Protections
Workplace laws protecting people from adverse action for exercising rights or possessing protected attributes.

Modern Award
A legal instrument setting minimum pay and employment conditions for particular industries or occupations.

National Employment Standards (NES)
Minimum employment entitlements applying to most employees under Australia’s national workplace relations system.

Performance Management
A structured process for addressing an employee’s performance, conduct or ability to meet workplace expectations.

Redundancy
The ending of employment because a role is no longer required to be performed.

Unfair Dismissal
A dismissal that is harsh, unjust or unreasonable under Australian workplace law.

Workplace Investigation
A formal process for examining allegations, complaints or misconduct within a workplace.

Workplace Mediation
A facilitated process used to help resolve workplace disputes between employees, managers or employers.

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Owners Corporation Law

These terms are commonly used in managing, maintaining and regulating properties with shared ownership. They appear in plans, rules, notices, fees, meetings and owner’s corporation disputes. Find out more on our Owners Corporation Law team page.

Breach Notice
A formal notice alleging a breach of owners corporation rules and requiring action to address it.

Common Property
Areas and facilities shared by lot owners and managed by the owners corporation.

Lot
A separately owned part of a property shown on a registered plan of subdivision.

Lot Entitlement
A lot owner’s share of common property and voting rights within the owners corporation.

Lot Liability
The proportion of owners corporation fees and expenses payable by each lot owner.

Maintenance Fund
Money set aside for major repairs, maintenance and replacement of common property.

Owners Corporation Fees
Amounts paid by lot owners to fund management, maintenance, insurance and other shared expenses.

Owners Corporation Rules
Rules governing the use of lots, common property and behaviour within the property.

Plan of Subdivision
The registered plan defining individual lots, common property and boundaries within a property.

Special Levy
An additional fee charged to lot owners for significant or unexpected owners corporation expenses.

Special Resolution
A resolution requiring a higher level of member approval for certain significant decisions.

VCAT Application
An application to VCAT to resolve an owners corporation dispute or enforce legal obligations.

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Migration

These terms refer to Australian visa applications, employer sponsorships, skilled migration and reviews of migration decisions. They relate to both visa applications that individuals make and those that employers may make on someone’s behalf. The terms appear in applications, nominations, supporting documents, visa conditions and review proceedings. Find out more on our Migration Law team page.

Administrative Review Tribunal (ART) Review
A review of certain migration decisions, including some visa refusals and cancellations, by the Administrative Review Tribunal.

Bridging Visa
A temporary visa allowing a person to remain lawfully in Australia while another immigration matter is resolved.

Employer Sponsorship
The process by which an approved employer supports an overseas worker for an eligible Australian visa.

Expression of Interest (EOI)
An online submission through SkillSelect indicating interest in being invited to apply for a skilled visa.

Labour Market Testing
A process requiring employers to test the Australian labour market before nominating certain overseas workers.

Labour Agreement
A formal arrangement between an employer and the Australian Government that allows businesses to sponsor overseas skilled workers, if the local market needs are not met through standard visa programs. 

Points Test
A system for calculating and awarding points for factors used to assess eligibility for a range of skilled working visas including subclass, 189, 190, 489, and 491.

Skills Assessment
An independent assessment of an applicant’s skills and qualifications for a nominated occupation.

Skilled Independent Visa (subclass 189)
A permanent residency visa for invited skilled workers whose occupations are in demand in Australia.

Skilled Nominated Visa (subclass 190)
A permanent skilled visa for eligible applicants nominated by an Australian state or territory government.

Skills in Demand Visa (subclass 482)
A temporary visa allowing employers to sponsor skilled overseas workers for nominated positions in Australia

Skilled Work Regional (Provisional) visa (subclass 491)
Is a five-year provisional visa that replaced the closed Skilled Regional (Provisional) visa (subclass 489) in 2019

Visa Cancellation
The formal ending of a visa after it has been granted because relevant legal requirements are no longer met.

Visa Conditions
Requirements attached to a visa that govern what the holder must or must not do in Australia.

Visa Refusal
A decision by Home Affairs not to grant a visa application. Our Migration Lawyers can help to dispute (overturn) these refusals.

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Types of Courts & Jurisdictions

What is a court or jurisdiction?
A court is the legal institution that hears cases, while its jurisdiction defines the types of matters it can decide. A courthouse is simply the physical location, and different courts may operate from the same building (courthouse) or across multiple locations.

Aitken Partners has been working with clients for over 100 years, and our expert lawyers will clearly explain and walk you through what to expect, in the event that your matter requires a court appearance.

Victoria

Magistrates’ Court of Victoria 
https://www.mcv.vic.gov.au/

County Court of Victoria 
https://www.countycourt.vic.gov.au/

Supreme Court of Victoria 
https://www.supremecourt.vic.gov.au/

Victorian Civil and Administrative Tribunal (VCAT) 
https://www.vcat.vic.gov.au/

Coroners Court of Victoria 
https://www.coronerscourt.vic.gov.au/

Queensland

Magistrates Court of Queensland 
https://www.courts.qld.gov.au/the-courts/magistrates-court

District Court of Queensland 
https://www.courts.qld.gov.au/the-courts/district-court

Supreme Court of Queensland 
https://www.courts.qld.gov.au/the-courts/supreme-court

Queensland Civil and Administrative Tribunal (QCAT) 
https://www.qcat.qld.gov.au/

Federal

Federal Court of Australia 
https://www.fedcourt.gov.au/

Federal Circuit and Family Court of Australia (FCFCOA) 
https://www.fcfcoa.gov.au/

Fair Work Commission (FWC) 
https://www.fwc.gov.au/

Administrative Review Tribunal (ART) 
https://www.art.gov.au/

High Court of Australia 
https://www.hcourt.gov.au/

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Additional Resources

Victoria
The Law Handbook (Victoria) https://www.thelawhandbook.org.au/
Victorian Legislation https://www.legislation.vic.gov.au/
Victorian Courts and Tribunals https://courts.vic.gov.au/court-system/victorian-courts-and-tribunals

Queensland
Queensland Law Handbook https://queenslandlawhandbook.org.au/
Queensland Legislation https://www.legislation.qld.gov.au/
Queensland Courts Information. https://www.courts.qld.gov.au/

Federal and Australia-wide
Federal Register of Legislation https://www.legislation.gov.au/
AustLII Legislation Database https://www.austlii.edu.au/
Federal Court of Australia Information https://www.fedcourt.gov.au/

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