Practice Area » Debt Collection » Glossary of Debt Collection Terminology
Debt Collection Glossary
Please select the letter you wish to preview the legal definitions for.
ABCDE FG HIJKL M N OP Q R S T UVW X Y Z
Abatement: Reduction or rebate of an amount owed, usually by agreement with the person to whom the debt is owed. Debts or claims may be abated pro rata if there is not enough money to meet them all.
Acceptance: One of three requirements for a valid contract under common law (the other two being offer and consideration). A contract does not become legally binding until one party has made an offer and the other party indicates his readiness to accept the terms of the offer. Acceptance must be unconditionally communicated to the offeror while the offer is still open. Acceptance of an offer can, in certain circumstances, be implied by conduct.
Accord and Satisfaction: A contract may be discharged if one party, who has complied with his part of the contract, accepts compensation from the other party instead of enforcing the contract. The accord is the agreement by which the obligation is discharged. The satisfaction is the consideration (usually money and of a lesser value) which makes the agreement operative.
Action: Proceedings in a civil court.
Affidavit: Sworn written statement signed by a deponent, who swears that its contents are true to the best of his knowledge and belief. It must be witnessed by a practising solicitor or commissioner for oaths.
Attachment and committal: Bringing a person before a court, with a threat of imprisonment for failure to obey a court order.
Attachment of earnings: Court order for deduction of salary at source in order to pay, for example, maintenance or a debt.
Audi alteram partem: (Latin:hear the other side) A principle of natural justice which requires that, where a decision may affect an individual's rights, that person has a right to be heard. It includes the right to receive notice of a hearing and to be legally represented.
Bailee: Person who accepts property through a contract of bailment, from the bailor, and who has certain duties of care while the property remains in his possession.
Bailment: Temporary transfer of goods by a bailor to a bailee (for example, for storage), after which the property is either returned to the bailor or disposed of according to the contract of bailment.
Barrister: Specialist in litigation and advocacy who receives instructions from a solicitor. Barristers may not normally deal directly with members of the public.
Bill of exchange: Written, signed instrument requiring the person to whom it is addressed to pay on demand (or on a future date) a fixed amount of money either to the person identified as payee or to anyone presenting the bill of exchange. A cheque is a form of bill of exchange.
Breach of contract: Failure or refusal to fulfil a term of a contract. The injured party may bring an action for damages, for enforcement or for cancellation of the agreement.
Case law: Published court decisions which establish legal precedents, binding lower courts.
Caveat: (Latin: let him beware.) A formal warning.
Caveat emptor (let the buyer beware) is a warning to buyers to check for themselves things which they intend to buy, so they cannot later hold the vendor responsible for the faulty condition of the item. The Sale of Goods and Supply of Services Act 1980 extends the rights of consumers in this area.
Certiorari: Form of judicial review whereby a court is asked to set aside the decision of an administrative tribunal, judicial officer or public organisation. Certiorari may be used where the decision of the lower tribunal was made in breach of the rules of natural justice. An application for certiorari must normally be made within six months of the decision.
Charge: Form of security for payment of a debt.
Cheque: Form of bill of exchange where the order to pay is given to a bank holding the payor's funds.
Child: Person under 18.
Circuit Court: Court above the District Court and below the High Court, with power to award damages up to €38,100.
Circuit Judge: Judge of the Circuit Court, addressed as "My Lord" whether male or female.
Clayton's Case: This English case established a presumption that money withdrawn from an account is presumed to be debited against the money first deposited (first in, first out).
Collateral: Property committed to guarantee a loan.
Company: Legal entity which permits a group of shareholders to create an organization to pursue set objectives. A company may have legal rights which are usually reserved for individuals, such as the power to sue and be sued, own property, hire employees or lend and borrow money. The main advantage of a company structure is that it gives shareholders a right to participate in profits (through dividends) without any personal liability.
Consent order: Court order agreed between both sides.
Consideration: Consideration has been defined as "some right, interest, profit or benefit accruing to the one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other". Under common law, any binding contract must have some consideration, no matter how small. The courts will not normally inquire into the sufficiency of the consideration; a "peppercorn rent" would be sufficient.
Contempt: Deliberate disregard of a court order.
Costs: The legal expenses of an action, such as lawyers' fees, witness expenses and other fees paid out in bringing the matter to court. The rule is generally that "costs follows the event", which means that the loser normally pays the legal costs of both sides. The judge has the final decision and may decide not to make an order on costs.
Debtor: Person who owes money, goods or services to a creditor. If a court judgment has been registered against the person owing the money, he is known as a judgment debtor.
Defence: Response to claim by plaintiff.Defendant: Person, company or organization which defends a civil action taken by a plaintiff and against whom the court is asked to order damages or corrective action to redress some unlawful or improper action alleged by the plaintiff. Also a person charged with a criminal offence.
District Court: Lowest court in the Irish judicial system, with power to award damages up to €6,350 in civil cases.
District Judge: Judge of the District Court, addressed as "Judge".
Evidence: Testimony of witnesses at a trial, or the production of documents or other materials to prove or disprove a set of facts. Evidence may be direct or circumstantial (that is evidence from which a fact may be presumed). The best evidence available - such as original, rather than copy, documents - must generally be presented to a court.
Fieri facias: (Latin:cause to be made) A writ of fieri facias commands a sheriff to take and auction off property to pay a debt (plus interest and costs) owed by a judgment debtor.
In personam: (Latin:against the person) All legal rights are either in personam or in rem. An in personam right attaches to a particular person.
In rem: (Latin:against the thing) In rem rights relate to property and are not based on any personal relationship.
Inter alia: (Latin:among other things) Used to precede a list of examples covered by a more general descriptive statement.
Inter partes: Latin: between the parties.
Legal Aid: Government scheme providing advice or assistance from a solicitor or barrister free or at a reduced rate.
Minor: Person under the age of 18 who is not married (or has not been married). A minor may only enter into certain contracts, such as those for necessaries or an apprenticeship. An Irish resident under the age of 18 may not legally marry without the permission of the Court, even if the ceremony takes place somewhere (such as Northern Ireland) where the minimum age for marriage is under 18.
Novation: Substitution of a new contractual debt for an old debt by agreement between the debtor, the creditor and a third party who takes on responsibility for the original debt.
Order: Formal written direction by a judge. Once a final order is made, it may only be amended if there has been an accidental slip in the judgment.
Pro rata: (Latin:in proportion) Division proportionate to a certain rate or interest. For example, if a company with two shareholders, one with 25% and the other with 75% of the shares, declared a dividend of €1,000 to be split pro rata between the shareholders, the one with 25% of the shares would receive €250 and the other €750.
Pro tempore (pro tem): (Latin:for the time) Temporary or for the time being.
Quantum: Latin: amount or extent.
Reserved costs: Apportionment of payment of legal fees to be decided at a later stage.
Reserved judgment: Decision to be given at a later date.
Respondent: Person against whom a summons is issued, or a petition or appeal brought.
Search Warrant: Written order (normally issued by a judge or peace commissioner) giving gardai permission to enter private property, to search for and seize evidence of the commission of a crime, the proceeds of crime or property that they suspect may be used to commit a crime.
Service: Delivery of court documents by one party to the other, personally or by post.
Stare decisis: (Latin:to stand by decisions) Policy whereby, once a court has made a
decision on a certain set of facts, lower courts must apply that precedent in subsequent cases which embody the same facts.
Substituted service: If a party appears to be avoiding service of legal documents, the court may be asked to direct that, instead of personal service (that is giving the documents directly to the person), they should be served in a different way, perhaps by posting them to the defendant's home or office or leaving them with a member of his family.
Summons: Written command to a person to appear in court.
Undertaking: Enforceable promise given to court.
Void: Without legal effect. A document that is void is worthless. An anti-competitive agreement or contract in restraint of trade may be void. A "marriage" involving a person under the age of 18 would be void in Ireland.
Voidable: The law distinguishes between void and voidable contracts. Some contracts have such a fundamental defect that they are said to be void. Others have more minor defects and are voidable at the option of the innocent party.
Business & Commercial
Landlord & Tenant
Conveyancing & Property
Probate & Administration
Litigation
PIAB
Debt Collection
Family Law
Wills
Glossary