Legal Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

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Illiquidity discount: A discount in the value of an interest in a business because of legal restrictions on the resale of such interest.

Impairment rating: A percentage estimate of how much normal use of your injured body parts that you have lost. Impairment ratings are based on guidelines published by the AMA.

Impaneling: Selecting a jury from the list of potential jurors.

Impeach: Attacking the credibility of a witness.

Implied contract: A type of enforceable contract that is not made explicitly, but is implied from the circumstances or the parties' conduct.

Incorporate: To obtain an official charter or articles of incorporation from the state for an organization, this may be a profit-making business, a professional business, such as a law office or medical office; or a non-profit entity or association.

Incorporator: The person or entity that organizes a corporation and files its Articles of Incorporation. The incorporator can take corporate actions before directors and officers are appointed.

Independent contractor: A person hired to do a particular job, subject to the direction of a supervisor. An independent contractor pays for his or her own expenses and taxes, and receives no employee benefits.  Some employers classify employees as an independent contractor to avoid workers' compensation. If your employer controls the manner of your work, has the right to terminate you, pays you an hourly wage or salary, requires you to work a specific schedule and makes deductions for Social Security or unemployment, then you are likely NOT an independent contractor.

Individual Retirement Account ("IRA"): A tax-deferred savings account in which the employee contributes no more than a set maximum amount annually.

Injunction: A court order requiring a person to do, or to refrain from doing, a particular thing.

Inspection report: An examination of a home's exterior, foundation, framing, plumbing, electrical system, heating, air conditioning, fireplace, kitchen, bathroom, roof, and interior.

Insolvent: When the total debt of an entity is greater than all of its property.

Inspections: Examinations of property for various reasons such as termite inspections, inspection to see if required repairs were made before funds are received, etc.

Installment Loan: A loan that requires periodic payment until both principal and interest are completely paid.

Insurable title: Title to property that a company agrees to insure against defects and disputes.

Intellectual property: Intellectual Property, or IP, is the group of legal rights to things people create or invent. Intellectual property rights typically include patent, copyright, trademark and trade secret rights.

Interest: A share of, a right to, or a concern with something of value; also, the premium paid for the use of money (based on an annual rate).

Interest-only loan: The borrower pays only the interest that accrues on the loan balance each month. Because each payment goes toward interest, the outstanding balance of the loan does not decline with each payment.

Interim financing: Short-term financing used by sellers to bridge the gap between the sale of one house and the purchase of another (also known as bridge or swing loans). A construction loan is also a form of interim financing.

Involuntary bankruptcy: A chapter 7 or chapter 11 case initiated by a debtor's creditors rather than by the debtor.

Insider: Someone who has a position in a business or stock brokerage, which allows him/her to be privy to confidential information (such as future changes in management, upcoming profit and loss reports).

Intentional infliction of emotional distress: Intentionally causing severe emotional distress by extreme or outrageous conduct.

Interrogatories: A written set of questions sent from one party to the other during the discovery process.

Interstate commerce: Commercial trade, business, movement of goods or money, or transportation from one state to another, regulated by the federal government according to powers spelled out in Article I of the Constitution.