Insurance and Business Law Flashcards

Comprehensive vocabulary flashcards covering the Irish legal system, legal personality, law of torts, contract law, agency, and fundamental insurance principles including insurable interest, disclosure, warranties, claims, indemnity, subrogation, and contribution.

Public Law

The branch of law concerned with the relationship between citizens and the State, as well as with the public interest.

Private Law

The branch of law concerned with the legal rights and relationships between private individuals or private legal entities.

Common Law

A system of law developed over centuries by judges deciding on individual cases, governed by the doctrine of binding judicial precedent.

Equity

A distinct body of legal rules developed by the Court of Chancery based on fairness and conscience, applied where the rigid nature of common law remedies (such as damages) produces an inadequate result.

Injunction

An equitable court order directing a person to do (mandatory) or to refrain from doing (prohibitory) a particular specified act.

Stare Decisis

The legal doctrine meaning 'to let the decision stand', which binds courts to follow decisions made in previous similar cases by higher or equal courts to ensure consistency.

Ratio Decidendi

The 'rationale of decision'; the core legal principle or crux of the case on which the court's final ruling is based, creating binding precedent.

Obiter Dictum

A judicial statement 'said in passing' that does not form the legal foundation for the decision; it is not binding on future courts but carries persuasive authority.

Statutory Instrument (SI)

A form of delegated or secondary legislation drafted and enacted by an authorised person (typically a government minister) to implement detailed rules under an Act of the Oireachtas.

Court of Justice of the European Union (CJEU)

The Luxembourg-based supreme judicial authority on EU law, whose decisions are strictly binding on all national courts of EU member states.

EU Regulation

A form of European Union legislation that is self-enacting, directly applicable, and automatically binding in its entirety across all member states without national legislation.

EU Directive

A legislative act of the EU binding on member states as to the result to be achieved, leaving the choice of form and methods of implementation to national authorities.

Injuries Resolution Board

A statutory body (formerly the Personal Injuries Assessment Board) that assesses damages and facilitates the early settlement of personal injury claims outside the court system.

Personal Injuries Guidelines

Guidelines adopted by the Judicial Council in March 2021 setting out compensation ranges for personal injury awards, replacing the Book of Quantum.

District Court (Ireland)

A court of limited, local, and summary jurisdiction with power to determine civil claims up to $€15,000$ (or $€2,000$ in the Small Claims procedure).

Circuit Court (Ireland)

A regional court with jurisdiction over civil claims up to $€75,000$ (limited to $€60,000$ in personal injuries actions).

High Court (Ireland)

A superior court with full original jurisdiction in all matters of fact and law, determining civil cases where damages sought exceed $€75,000$ ($€60,000$ for personal injuries) and assessing the constitutionality of laws.

Court of Appeal (Ireland)

An appellate court established under the Court of Appeal Act 2014 to hear appeals from the High Court, acting as the court of final appeal in most instances.

Supreme Court (Ireland)

The court of final appeal in Ireland, hearing cases of exceptional public importance or constitutional significance, and ruling on Bills referred by the President under Article 26.

Financial Services and Pensions Ombudsman (FSPO)

A statutory body providing an independent and impartial dispute resolution service for consumer complaints against regulated financial service and pensions providers.

Arbitration

A private dispute resolution mechanism governed by the Arbitration Act 2010 where a contractual dispute is determined by an agreed independent arbitrator whose award is legally enforceable like a court judgment.

Literal Rule

The primary rule of statutory and contractual interpretation requiring words and phrases to be construed in their ordinary, grammatical, and natural sense.

Golden Rule

A rule of statutory interpretation permitting a court to depart from the ordinary meaning of words if a literal interpretation leads to an absurd result, adopting an alternative meaning that reflects legislative intent.

Mischief Rule

A rule of statutory interpretation under which a judge interprets the words of an Act in light of the underlying defect or abuse ('mischief') that the legislation was intended to correct.

Noscitur a Sociis

A canon of construction meaning 'known by the company it keeps', whereby the meaning of an ambiguous word is deduced from its context and surrounding words.

Ejusdem Generis

An interpretation rule meaning 'of the same kind', whereby general words that follow specific words are restricted in meaning to things of the same class or category as the preceding specific words.

Expressio Unius Est Exclusio Alterius

A maxim of interpretation meaning 'expressing one thing excludes others', where the explicit mention of one specific thing implies the exclusion of items not listed.

Natural Person

A living human being who possesses legal rights and duties recognised by the law from birth until death.

Juristic Person

A non-human legal entity, such as an incorporated company, given a distinct legal personality and existence recognised by law.

Necessaries

Goods or services suitable to the condition in life of a minor and their actual requirements at the time of sale and delivery, under which contracts are legally binding on the minor.

Vicarious Liability

A form of legal liability where one person or entity is held legally liable for civil wrongs committed by another person, most commonly an employer for the torts of an employee in the course of employment.

Separate Corporate Personality

The foundational company law principle that an incorporated company has a legal existence, rights, and liabilities completely distinct and separate from its shareholders and directors.

Limited Liability

The legal protection restricting a shareholder's personal financial liability for the debts and obligations of a company to the amount paid or unpaid on their shares.

Corporate Veil

A legal concept that separates and shields the personal liability of shareholders and officers from the debts and torts of the company in which they hold shares.

Designated Activity Company (DAC)

A private company incorporated under the Companies Act 2014 whose legal capacity is defined and restricted by an explicit objects clause contained in its constitution.

Ultra Vires

An act or contract carried out beyond the scope of legal powers or objectives authorised by a company's constitution or a body's statutory mandate.

Fiduciary Duty

A strict duty of good faith, honesty, and trust requiring corporate directors and agents to act entirely in the best interests of their company or principal.

Examinership

A legal rescue mechanism where an ailing but potentially viable company is placed under court protection for up to 70–100 days while an examiner formulates a survival scheme.

Partnership

The relationship subsisting between persons carrying on a business in common with a view of profit, where partners share joint, several, and unlimited personal liability.

Tort

A civil wrong arising from a breach of duty fixed by law towards persons generally, actionable primarily for unliquidated damages.

Actionable Per Se

A civil wrong that is actionable in itself without any legal requirement for the claimant to prove that actual damage, injury, or financial loss occurred.

Strict Liability

A standard of tortious or statutory liability where a defendant is held legally responsible for harm or damage regardless of whether their conduct was intentional or negligent.

Negligence

The breach of a legal duty of care owed by a defendant to a plaintiff which results in reasonably foreseeable loss, injury, or damage.

Neighbour Principle

The common law test formulated in Donoghue v Stevenson stating that one must take reasonable care to avoid acts or omissions reasonably foreseeable as likely to injure one's legal 'neighbour'.

Novus Actus Interveniens

A 'new act intervening'; an independent intervening cause that breaks the chain of causation between the defendant's original negligence and the ultimate damage.

Remoteness of Damage

The legal principle established in The Wagon Mound (No. 1) that a defendant is only liable for losses that were reasonably foreseeable as a consequence of their breach.

Eggshell Skull Rule

The common law principle that a defendant must 'take their victim as they find them', rendering them liable for the full extent of injury even if heightened by a pre-existing physical condition.

Negligent Misstatement

A false or inaccurate statement or professional advice made carelessly in the context of a special relationship, causing direct financial loss to a party who reasonably relied upon it.

Nervous Shock

A recognised psychiatric illness or injury induced by sudden mental or emotional shock resulting from a defendant's negligent or intentional act.

Trespass

A tort consisting of direct, unlawful, and intentional interference with the person, land, or goods of another, which is actionable per se.

Public Nuisance

An unlawful act or omission that causes inconvenience, danger, or annoyance to the public at large or interferes with a common right of all citizens.

Private Nuisance

An unlawful, continuous, and unreasonable interference with a person's use, enjoyment, or rights associated with their occupation and ownership of land.

Rule in Rylands v Fletcher

A rule of strict liability establishing that a person who brings and keeps on land anything likely to cause mischief if it escapes is prima facie answerable for all damage following its non-natural escape.

Breach of Statutory Duty

A tort that arises when a person or organisation violates a specific statutory obligation intended by the legislature to confer a private right of civil action for damages.

Res Ipsa Loquitur

A rule of evidence meaning 'the thing speaks for itself', shifting the burden of proof to the defendant when an accident could not have occurred without negligence and the causative agency was under the defendant's control.

Defamation

The publication to a third party of a false statement that tends to injure a person's reputation in the eyes of reasonable members of society.

Volenti Non Fit Injuria

A common law tort defence meaning 'no legal wrong is done to a person who consents', operating when a plaintiff knowingly and voluntarily assumes the legal risk of injury.

Ex Turpi Causa Non Oritur Actio

A legal doctrine meaning 'no action arises from a base cause', prohibiting a plaintiff from pursuing a civil legal action founded upon their own illegal or criminal activity.

Contributory Negligence

A defence demonstrating that a plaintiff failed to take reasonable care for their own safety, resulting in a proportionate reduction in damages under Section 34 of the Civil Liability Act 1961.

Special Damages

Ascertainable, liquidated out-of-pocket financial expenses and monetary losses incurred by an injured party up to the date of trial, such as medical fees and loss of earnings.

General Damages

Unliquidated financial compensation awarded by a court for non-monetary harm that cannot be precisely calculated, including pain, suffering, loss of amenities, and future losses.

Exemplary Damages

Punitive damages awarded above general and special damages to punish a defendant for outrageous or oppressive conduct and deter similar behaviour.

Date of Knowledge

The date on which an injured plaintiff first became aware of the significance of their injury, its cause, and the defendant's identity for the purposes of the Statute of Limitations.

Contract

An agreement between two or more parties to do or abstain from doing an act, made with the intention of creating a legally binding relationship enforceable by law.

Contract Under Seal

A formal speciality contract executed in writing as a deed and witnessed, which is legally binding without the requirement for consideration.

Simple Contract

An informal contract made orally, in writing, or implied by conduct, which requires valid consideration from both parties to be enforceable.

Unilateral Contract

A contract where one party makes an open promise (such as offering a reward) which becomes binding on that party only if and when another party performs the requested act.

Bilateral Contract

A contract involving a mutual exchange of promises between two or more parties, where each party undertakes legal obligations to the other.

Void Contract

An agreement that lacks legal validity and has no binding effect on either party from the outset, being treated in law as though it never existed.

Voidable Contract

A contract that is valid and binding when made, but which one or both parties have the legal option to affirm or set aside due to defects such as misrepresentation, duress, or undue influence.

Invitation to Treat

A preliminary communication, price display, or advertisement that invites the other party to make a contractual offer, rather than being an offer itself.

Postal Rule

The common law rule establishing that an acceptance made by post is complete and legally effective at the exact moment the letter is correctly posted, rather than upon receipt.

Consideration

Some right, interest, profit, or benefit accruing to one party, or some forbearance, detriment, loss, or responsibility given, suffered, or undertaken by the other, changing a promise into an enforceable bargain.

Promissory Estoppel

An equitable doctrine that prevents a promisor from enforcing strict legal rights where they previously promised not to do so and the other party detrimentally relied on that promise.

Condition (Contract Law)

A vital term going to the root of a contract, the breach of which entitles the innocent party to treat the contract as repudiated and seek damages.

Warranty (Contract Law)

A minor or subsidiary term of an agreement, the breach of which entitles the injured party to claim damages but not to repudiate the contract.

Duress

Unlawful force, threats of violence, or economic coercion applied to compel a party into entering an agreement against their will, rendering the contract voidable.

Undue Influence

An equitable doctrine where one party abuses a relationship of trust, confidence, or dominance to persuade another party into entering a contract without exercising free will.

Non Est Factum

A common law defence meaning 'not my deed', permitting a person who signed a document in error due to blindness, illiteracy, or trickery to avoid liability if it differs fundamentally from what was represented.

Rectification

An equitable remedy through which a court corrects a written legal document to accurately reflect the true, common intention and prior agreement of the parties.

Frustration

The discharge of a contract occurring when an unforeseen supervening event, arising without the fault of either party, renders performance physically, legally, or commercially impossible.

Privity of Contract

The fundamental common law doctrine providing that contract rights and obligations are confined exclusively to the parties who originally concluded the agreement.

Agent

A person who has the legal authority or power to act on behalf of another person (the principal) to establish contractual relations with a third party.

Agency by Ratification

The retrospective creation of an agency relationship where a principal confirms, adopts, and accepts liability for an unauthorised act previously carried out in their name by an agent.

Agency by Necessity

An agency created by operation of law when an emergency arises requiring a bailee of goods to act to preserve property when instructions from the owner cannot be obtained.

Apparent Authority

The authority an agent appears to have in the eyes of a third party because of representations or conduct by the principal holding the agent out as authorised, binding the principal.

Undisclosed Principal

A principal whose existence and identity are entirely unknown to a third party at the time a contract is made by an agent acting within their actual authority.

Breach of Warranty of Authority

A cause of action available to a third party against a purported agent who falsely or mistakenly claims to possess authority to bind a principal who is ultimately not bound.

Lien

The legal right of an agent or creditor to retain physical possession of goods or property belonging to another as security until an outstanding debt is discharged.

Insurable Interest

A legal or equitable relationship recognised at law between the insured and the subject matter of insurance, such that the insured benefits from its safety and suffers financial loss upon its destruction.

Moral Hazard

A risk that arises from the character, dishonesty, lack of prudence, or altered incentives of a policyholder, increasing the probability or severity of an insurance loss.

Physical Hazard

The tangible, objective, and physical characteristics of the subject matter of insurance (such as construction materials or location) that influence the likelihood and extent of a loss.

Insolvency Service of Ireland

An independent statutory body established under the Personal Insolvency Act 2012 responsible for monitoring and administering formal debt solutions and personal insolvency arrangements.

Bailee

A person who has lawful physical possession of goods belonging to another for a particular purpose or limited time, owing a duty of reasonable care which creates an insurable interest.

Reinsurance

A contract under which an insurer (the cedant) transfers part or all of its assumed insurance liabilities to another insurer (the reinsurer) in exchange for a premium.

Utmost Good Faith (Uberrimae Fidei)

A fundamental legal doctrine in non-consumer insurance requiring the proposer and insurer to deal honestly and voluntarily disclose all material facts to each other without being asked.

Material Fact

Every circumstance that would influence the judgement of a prudent underwriter in determining whether to accept a risk and in fixing the appropriate premium and terms.

Spent Conviction

A single conviction of a person aged 18 or older where at least seven years have elapsed, which is relieved from mandatory disclosure under the Criminal Justice Act 2016.

Increase of Risk Clause

A policy condition requiring the insured to notify the insurer of any permanent alteration in the subject matter that increases the hazard, on pain of suspension or cessation of cover.

Warranty (Insurance)

A vital undertaking or promise made by the insured in a non-consumer insurance contract, the breach of which automatically terminates policy cover from the date of the breach.