Glossary of legal terms


The acquisition in economic terminology implies getting hold of jobs and customers through well trained persons, so-called sales representatives. Acquisition of a company is a situation whereby two companies merge or one company purchases another company’s shares so that two or more companies consequently become one business unit.

Arbitration, or out of court procedure, is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons (the arbitrators, arbiters or arbitral tribunal). The arbitrator, or arbitral tribunal as a non-government court derives its authority for dispute resolution from the parties’ agreement.

The agreement about the dispute. The act of agreeing, convergence and equalization of attitudes and opinions.

Annex is a term used for an addition to a document. In law, it is an addition to the legal act, most commonly to a contract or a regulation, and is used to further regulate legal relations and questions regarding the relevant legal act.

It represents the determination of the value of the detected evidence and the evidence presented in relation to the disputed facts, which are the subject of proof and which constitute the content of the criminal matter.

Audit is a formal examination of an organization’s or individual’s accounts or financial situation. The accounts are checked for accuracy, completeness, credibility, legitimacy and objectivity.


Bianco (Italian), is a term that indicates that a certain document or security was signed without one or more essential elements necessary for the document to be legally valid (e.g. the issue date, client, amount). Holder of the document can, in accordance with the agreement and by binding the issuer, insert missing terms on their own.

Bail is the insurance (money, securities) that the borrower gives to the lender. It is given in cash. Exceptionally, the court may authorize the granting of bail in the form of bank guarantees, securities that can be quickly and easily redeemed.

Bankruptcy is a major court proceeding against the property of the insolvent debtor. It can be requested by the creditor or by the debtor itself. The property of the debtor becomes the liquidation mass that is used for settling the debts to creditors.


Civil Court Proceedings stem from the nature of legal matters in question in these proceedings, as well as the fact that a number of rules of the proceedings are applicable in the executive and non -contentious proceeding. In addition to administrative proceedings and criminal proceedings, it is the third basic type of litigation.

Cession or ceding of the claim means the transfer of alienable claim from the former creditor (assignor) to new creditor (assignee), whereby the borrower (Cesus) and the claim remain unchanged.

The cedant is the creditor from whom the alienable claim is being transferred to a new creditor or assignee.

Condominium is the ownership of a special part of co-owned property consisting of land with a building or the construction rights with the building. The object of condominium can only be a specific part of a co-owned real estate that makes a self-contained unit suitable for independent execution of co-owner’s rights.

The Croatian Bar Association is a professional association of Croatian lawyers. Croatian Bar Association, as the regulatory body of the legal profession and the professional organization of all Croatian lawyers and lawyer trainess  in Republic of Croatia, on the basis of public authority, regulates the work of lawyers and lawyertrainess and preserves the autonomy and independence of the legal department.

Clue is a piece of evidence, a fact that is not legally relevant, but is used in the detection of the existence or absence of legally relevant facts.

A criminal charge is formal accusation made by a governmental authority asserting that someone has committed a crime.

Clause is a section, phrase, paragraph or a segment of a legal document that relates to a particular point, most often to a certain condition, limitation or retention.

Competency is the right and duty of some government body or other legal entity in performing certain tasks; it is a scope of work determined by regulations.

Compensation is the obligation of responsibility for the damage caused.

The criminal scene investigation consists a of number of procedural or technical operations that are carried out by a court, police or some other authorized state body in the place of an event, in order to obtain direct observation of the existence or absence of any important facts that can serve as evidence in a judicial or administrative procedure.

Claim is a request for relif from the Credito to fullfil its obligation undertaken. for something due or believed to be due.

Contract is a voluntary, deliberate and legally binding agreement between two or more competent parties. It is directed to produce the legal effects, that are permitted by law, and that consist of either creation, termination or amendmen of legal relationships.


Delegation or deputation is an authorized group that represents the state, the state organ or the organization visited by a similar organ or is a participant of a multilateral meeting.

Division is a process of separating the joint property. It can be amicable and judicial.

A person with professional knowledge who help the accused in his defense in a criminal procedure.

Divorce is a legal dissolution of a marriage by court or other competent body when two spouses begin their separate lives.

Debentures are securities issued by the company, using its assets as collateral.


Exclusive right is the sole right that belongs to one subject only.

The expression of will  must come from a company or an individual who has the appropriate business capacity necessary for the conclusion of the matter, and it has to be given seriously and freely. The will can be expressed in different ways (words, letters, signs and exceptionally by silence).


A deed of gift is a signed legal document that voluntarily and without recompense transfers ownership of a certainreal, intellectual or personal property from one person or institution (donor), to another (donee), and where the donee accepts the gift.

A guarantee is an agreement by which a third party, i.e. Guarantor, commits to the Lender to fulfill a legally binding and due obligation of the principal debtor if he/she does not fulfill this obligation.


A franchise is a type of license that a party (franchisee) acquires to allow them to have access to a business’s (the franchiser) proprietary knowledge, processes, and trademarks in order to allow the party to sell a product or provide a service under the business’s name. In exchange for gaining the franchise, the franchisee usually pays the franchisor an initial start -up and annual licensing fees.

Legal work that requires a formal legal form or agreement between parties, in order to be concluded.

The fact is any information that can be undeniably established. In establishing the facts, it is necessary to have an objective approach that needs to be substantiated by the exact evidence.

Fee is a payment (reward) made to a professional person in exchange for advice or services.


In law, hearing is a proceeding before a court or other decision-making body or officer, such as government agency or Parliamentary committee.  Hearing is scheduled for taking certain actions in the procedure, e.g. to gather certain evidence or perform a discussion.


When a co-ownership exists over a certain matter, it is considered that this matter is legally divided into substantially equal parts (ideal parts). The size of the part is determined by co-owner’s shares. The ideal part of the matter is inseparable from the co-owned part by which it is determined.

Immunity (in law) is the exclusion of liability in regards to legal matters, such as economic and legal responsibility.

Inheritance law is a set of legal rulesthat regulate the transition of assets (their subjective rights and obligations), from one person who has passed away – the decedent, to other personos-the successors.


Land Consolidation is an agricultural measure carried out for the purpose of grouping of sole land particles in order to rationalize agricultural production.

Law is the system of rules which a particular country or community recognizes as regulating the actions of its members and that can be enforced by imposition of penalties.

A lawsuit is a proceeding by a party or parties against another party/parties in the civil court of law.

Rent or lease, in general, is a contract relating to property, according to which a property owner allows another person to own, use and enjoy the property for a certain period in exchange for periodic payments, usually in the form of rent.

Legislative authority or legislature is the name of the branch of government whose function is to pass the law.

Legal remedies are statements of the will by which the authorizing officer from the competent body of a higher degree requires the examination of the legality of the act which has been passed by the lower body. Extraordinary remedies are used against legitimate decisions, and are permitted only for the reasons stated in law and usually granted to the authorized person for a longer period of time.

Liquidation is the process in law and business by which a company is brought to an end, and its property and assets are redistributed to other companies or individuals according to law.


Marital disputes are disputes for determining the existence or non-existence of marriage, annulment or divorce and are conducted at the municipal court. Litigation begins with the law suit, and the persons authorized to make a law suit are determined by law, depending of their legal interest.

Marriage contract is concluded in writing and the signatures of the spouses must be certified by a public notary. Marriage is a legally regulated union of man and woman.


Obligation is any positive or negative human activity that the debtor  is obliged to perform towards the creditor  on the basics of the obligatory relationship.

Offsetting or compensation in law is a reduction in the amount of a judgement granted to a losing party based on debts owed by the prevailing party to the losing party.

Ownership is the real right that gives the holder the most complete legal power over a certain matter. The owner is allowed to do as they like with their belongings, as long as it is not illegal.


Precautionary measure is a type of legal enforcement to ensure the presence of a defendant in a criminal procedure, or to prevent their dangerous behavior during the procedure.

Procedural law in civil matters  is the body of law that sets out the rules and standards that courts follow when adjudicating civil lawsuits. These rules govern the commencement of a lawsuit or a case, what kind of service of process in required, and mutual relations of the subjects.

Government bodies, bodies of local and territorial (regional) self-government, legal persons with public authorities and legal persons who have access to classified information (state secret, military secret, official secret, business secret), have the obligation to protect the state  secrets.

Public Notary is a person authorized to draw up public documents, certify signatures and transcripts.


Cadaster is a comprehensive land recording of the real estate or real property’s metes-and-bounds of a country. It contains information about the position, shape and surface of cadastral parcels and buildings, or other structures, which are subject to registration in accordance with special regulations.

Registration of property rights and goods in the land registry.


Security is a document proving ownership or particular right in economic relationship.

Seizure is defined as enforceable action taken in the process of the enforcement proceedings.

Settlement is an agreement between two or more parties, concluded before courts and entered into court records. The settlement is only valid if it is granted by the court (acknowledged by the court), and if it does not violate any of the existing legal regulations.

Substantive truth, the real truth, is the truth that is based on real facts and is expressed by the image of the established facts and the reality being the same.

Suspension of the proceedings is the temporary halt of almost all activities in the litigation as a result of an explicit or a tacit disposition.

Statute of Limitations is a statute assigning a certain time after which rights cannot be enforced by legal action or offenses cannot be punished. It represents the loss of the creditors rights to claim due to its passive attitude through the legal timeframe.


Each co-owner, regardless of the size of their share, has indefeasible right to dissolute the co-ownership. Dissolution may be carried out by physical division, civil division or division by disbursement.

Title deed is a document that states and proves someone’s legal right to own a building or a piece of land. It contains the information about the owner, change of ownership and personal restrictions of the owner in regards to disposition of property.


Veto means a ban. It is the right of an entity, e.g. the country that is a member of an international organizations, political staff operating on national or regional level and so on, to, under certain legal conditions, ban the adoption of some decision, resolution, law etc., if they estimate that it is not in their or common interest.


The Will is a legal declaration of a person’s final wishes regarding the disposal of their property or estate after death.