Legal Glossary - MNO
A process in which an impartial third party (the mediator) assists the opposing parties to bring about an agreed settlement or compromise, without requiring a decision of the Court. The outcome has no binding force, unless the parties mutually assent to form a contract requiring their adherence. (They may then sue for breach). Mediation is popular with the legal fraternity as it involves less cost, less stress and antagonism, and less commitment of time than litigation.
Mitigation of loss
Action taken to minimise losses incurred due to a breach of contract. A person suing for damages resulting from a breach of contract is expected to take reasonable steps to mitigate their losses rather than to allow the sum claimable to be maximised.
A security interest over an item of property, taken when money is lent. This terminology is applicable whether the related transaction is the sale of goods or the sale of real estate, whether the agreement is entered at the instigation of the purchaser or seller. The lender is mortgagee and the borrower (customer) is mortgagor.
The right to be given a fair hearing, to be able to present your case, and receive an unbiased and properly informed decision. Synonym: procedural fairness. See also the right to be heard.
A branch of tort law based on a concept that all persons have a duty of care toward each other, and requiring that harm incurred due to the failure of such duty be compensated. Factors to be considered in establishing or defending a negligence claim are: duty of care, foreseeability, causation, contributory negligence and voluntary assumption of risk.
A party to a contract who initiates the transaction. Normally it is the dominant party – the provider of goods or services, or the employer. In retail sales where goods are available on shelves for customers to select, the customer is the offeror. The rights of parties are not affected by being offeror or offeree.
A party to a contract who responds to the offer by accepting or declining the offer. Normally it is the subservient party – the purchaser of goods or services or the employee. In retail sales where goods are available on shelves for customers to select, the seller is the offeree. The rights of parties are not affected by being offeror or offeree.