financial events

Bottomry

Bottomry, also known as a bottomry bond, is a contract where a shipowner provides his or her ship as security for a loan to finance a voyage or for a certain period of time. The shipowner usually uses the loan for maritime (i.e. sea-related)...

Cafeteria Plan

A cafeteria plan is a written employee benefit program that allows employees to choose at least two benefits from a menu of options. As explained by the Internal Revenue Service (IRS), a cafeteria plan must allow employees to choose between...

Cancel

Definition from Nolo’s Plain-English Law DictionaryTo cross out or destroy a document by tearing it up, writing on its face that it is cancelled or void, or otherwise defacing it.

Definition provided by Nolo’s Plain-English Law Dictionary.

Cancellation

Cancellation is the act of destroying a document by making lines through it, tearing it up, or defacing it with the intention of rendering it void. In contract law, cancellation happens when a party to a contract ends the contract due to the...

Cap

A cap is a set limit on some form of income, interest, fees, loan, or benefit. Examples of caps:

A loan can have varying interest rates based on the market, but the loan can have a maximum or cap rate of interest. Businesses can set a...

Capacity

In contract law, a person's ability to satisfy the elements required for someone to enter binding contracts. For example, capacity rules often require a person to have reached a minimum age and to have soundness of mind.

Capital Gains

Capital gain, for income tax purposes, is the gain realized from sale of capital assets. The difference between the original purchase price and the sale price is the gain realized. The tax on capital gains only occurs when an asset is sold or “...

Capture Doctrine: Trusts

The capture doctrine is a theory in trust law that exists in a few US states. If there exists evidence that the donee of a power of appointment intended to exercise control over the appointive assets, even if the exercise of the power was invalid or...

Carryback

Definition from Nolo’s Plain-English Law DictionaryA method for receiving a refund of back taxes by applying a deduction or credit from a current year to a prior year. (See also: carryover)

Definition provided by Nolo’s Plain-English Law Dictionary.

Carryover

Definition from Nolo’s Plain-English Law DictionaryA method by which deductions and credits for one tax year that could not be used to reduce tax liability in that year are applied against tax liability in subsequent years. (See also: carryback)

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