Home Find A Trustee Bankruptcy Alternatives Consumer Proposal Bankruptcy Links and Resources

©  Copyright 2012 The Canadian Trustee Network Inc. all rights reserved

[Talk to a Trustee NOW! 1.855.752.5359] [Find a Bankruptcy Trustee] [Know the Bankruptcy Alternatives] [What is a Consumer Proposal] [Learn about Bankruptcy] [What are the Costs of Bankruptcy] [Bankruptcy & Insolvency Links and Resources] [Site Map] [Disclaimer] [HOME]

©  Copyright 2012 The Canadian Trustee Network Inc. all rights reserved

[Talk to a Trustee NOW! 1.855.752.5359] [Find a Bankruptcy Trustee] [Know the Bankruptcy Alternatives] [What is a Consumer Proposal] [Learn about Bankruptcy] [What are the Costs of Bankruptcy] [Bankruptcy & Insolvency Links and Resources] [Site Map] [Disclaimer] [HOME]


These are simple straight forward easy to understand explanations and should not be interpreted as legal definitions.

A  B  C  D  E  F  G  I  J  L  M  O  P  Q  R  S  T  U  V  W



Complete and without conditions.  For example, a bankrupt, usually after nine or twenty-one months receives an Absolute Order of Discharge, which means all of his debts, with certain exceptions, are wiped out.

Abstract of Title

A chronological history of real property (eg. house) showing the chain of title from its original grant to the present ownership.


A bill which has passed through the various legislative steps to become law.


A proceeding in a Court of law where one person seeks a Court Order for the enforcement of that person's or company's rights.


Delay or postponement to another time, or a time to be set later a meeting or action.

Administrator of Consumer Proposals

An administrator of Consumer Proposals is a trustee in bankruptcy or a person appointed by the Superintendent of Bankruptcy to administer Consumer Proposals.


A statement by a person in which the person states that to the best of his or her knowledge, the facts in question are true.  An affidavit is sworn before a Notary, Commissioner for Taking Oaths, lawyer or some other judicial officer who can administer oaths.

After Acquired Property

Property acquired by a bankrupt between the date of bankruptcy and before they have received a discharge from bankruptcy.


To void or to cancel.


To ask a more senior Court or person to review a decision of a lower Court.


The act of showing up in Court as either plaintiff, defendant, accused, or any other party to the action.


The act of making a request usually of the Court, for example, an application to have a bankrupt discharged.


The act of designating, or the acquisition of some, responsibility or position.  For example, the Court can appoint a Trustee in Bankruptcy as Receiver of some property.


A dispute resolution mechanism, whereby an independent neutral third party is appointed to hear and consider the merits of the dispute, and who renders a final and binding decision called an award.

Back to top

Arm's Length

The act of dealing with a person who is not a relative but an independent third party.


The amount of money by which a contract or obligation is in default.


The valuing of a thing or property

Assessment Interview

An interview conducted by a trustee or an administrator of a consumer proposal before a bankruptcy or a consumer proposal is filed. Its purpose is to evaluate the debtor's financial situation, explain the options available and discuss the benefits and the consequences of the debtor's choice.

Assets and Property

A thing, chattel, resource or item or piece of property owned or controlled by a person or company.   In a bankruptcy, you must assign all your assets to the trustee, except for exempt property (such as basic furniture, tools-of-trade and, under certain circumstances, the goods and services tax credit payments). Exempt property will vary from province to province. See Property Exemptions and confirm with your trustee.


To give or to transfer responsibility to another.

Assignment into Bankruptcy

The act of a person who places himself or his company into bankruptcy pursuant to the Bankruptcy and Insolvency Act.


To turn over; e.g., rent; a tenant agrees to recognize a new party as landlord.

Automatic Discharge

First-time bankrupts receive an automatic discharge nine months after they became bankrupt unless it is opposed by either a creditor, the trustee or the Superintendent of Bankruptcy.



A person who assists creditor's in repossessing, or distraining assests or property.


A person who has made an assignment or against whom a receiving order has been made, or the legal status of that person.


The state of being bankrupt.

Bankruptcy and Insolvency Act (the Act) (BIA)

This is the federal law that regulates bankruptcy and proposal proceedings in Canada. If falls under the responsibility of the Office of Superintendent of Bankruptcy at Industry Canada.

Back to top

Bankruptcy Court

This is the court in which a Judge, Master or Registrar will decide on the bankrupt’s application for discharge and other insolvency matters.   

Bona Fide

In good faith.

Builder's Lien

A builder that supplied goods or services, can take action by filing an charge, like a mortgage, against the property for monies he is owed.


CAIRP (Canadian Association of Insolvency and Restructuring Professionals)

The Canadian Association of Insolvency and Restructuring Professionals is the national professional organization representing 913 general members acting as trustees in bankruptcy, receivers, agents and consultants in insolvency matters. There are also another 430 members (in the articling, life and corporate categories). The Association is a non-profit corporation, established in 1979 to "advance the practice of insolvency administration and the public interest related to it".

The CAIRP website is:

Case Law

Laws are continually being reviewed and interpreted by Judges in various cases. Reviewing past decisions can act as a precedent (guide) to how the law will be, or should be, applied under same or similar circumstances.


A formal warning.  Beware!

Caveat Emptor

Let the buyer beware.


An encumbrance, lien or financial obligation that is attached to some property.  For example, a person who files a lien against a piece of property might say that he has a charge against that property.


Assets that are movable and not attached to land or real property.

Back to top

Chattel Mortgage

An interest that is given by one person in, say, a piece of property such as a TV to another person to secure a debt.

Claim Provable In Bankruptcy

Any claim or liability that is provable under the Bankruptcy and Insolvency Act. (BIA)

Claw Back

The reversal of an action. For example, a one year claw back will be in effect for RRSPs in provinces without RRSP exemption laws. In other words, RRSP contributions made in the 12 months prior to bankruptcy (in those provinces) will form part of bankruptcy estate and be distributed to your creditors.

Clearance Certificate

A certificate issued by a statutory body signifying that they are not owed any money in regards to a certain estate.


Property that has been given or committed in order to guarantee a loan.

Commissioner of Oaths

Commissioner for taking affidavits in a province as authorized by provincial statute.

Common-Law Partner

Your spouse under the law even though the couple are not legally married.


Under common-law, one of the three criteria that have to be met before a contract is binding.  Refers to money or payment of money or some benefit accruing to the one party, or some loss or responsibility given, suffered or undertaken by the other.

Consumer Debtor

A natural person who is bankrupt or insolvent and whose aggregate debts, excluding any debts secured by the person's principle residence, do not exceed $250,000 or such other maximum as is prescribed.

Consumer Goods

Goods that are used or acquired for use primarily for personal, family or household purposes.

Consumer Proposal

A simplified form of Proposal available to debtors owing less than an amount prescribed under the Bankruptcy and Insolvency Act. In 2011 the amount was $250,000, excluding a mortgage on the principal residence.


An oral or written agreement between two or more parties which is enforceable by law.  In order to be valid, a contract requires an offer, an acceptance of that offer and, in common-law jurisdictions, consideration.


That act which transfers property from one person to another.

Back to top


Your bankruptcy, or proposal does not cancel the responsibility of anyone who has guaranteed or co-signed a loan on your behalf. For example, if your parent co-signed a loan for you, that parent would be liable to pay the loan in full even if you decide to file for bankruptcy.


Individuals are required to take counselling from trustees or administrators when they file for bankruptcy or make consumer proposals. If they do not take counselling they may not be discharged from bankruptcy or have their consumer proposal satisfied.


A Creditor is a person, or business to whom money is owned. Secured creditors are creditors who have taken some measure to protect themselves and hold a mortgage, pledge, lien or similar instrument on, or against, your property, If they are not paid, they can enforce their claims by recovering the assets on which they hold security. Unsecured creditors are creditors who do not have any security for the debt owing to them.    

Credit Bureau

Credit bureaus, or credit reporting agencies, collect information about consumers’ financial affairs and sell the information to their clients, such as credit grantors, employers, and insurance companies. These agencies obtain information from various sources, for example:

From the consumer who provides information when filing out an application for credit or a loan;

From public records which provide information related to such matters as bankruptcy, court judgments, and conditional sales contracts;

From credit grantors and collection agencies who provide credit files on a monthly basis.

These files contain information such as the account number, the outstanding balance, and a nine-point rating scale, for example: R1 indicating that payment was made on time; R2 that payment was made 30 days late, but not more then 60 days; and R9 indicating a bad debt or on that has been placed for collection and it also applies to bankruptcy.   It should be noted that your credit rating is set by your creditors. Credit bureaus only pass on that information to their clients.

Credit History

A record of your credit related personal, employment and debt repayments maintained by a Credit Reporting Agency


Deemed Assignment

When a debtor's Division I proposal is rejected by the creditors they are deemed to have filed an assignment into bankruptcy the day the proposal was rejected.



Those charges or the security that attaches to any kind of property.  For example, if there is a mortgage on a piece of property, then the property is said to be encumbered by that mortgage.


What remains or would remain after a property is sold. It is calculated by taking the selling price and subtracting any mortgages or registered liens.

Back to top


Under the Bankruptcy and Insolvency Act, the name given to the file or bankruptcy estate.


Trustees in Bankruptcy are subject to the Codes of Ethics under: CAIRP, The Canadian Association of Insolvency and Restructuring Professionals;The Bankruptcy and Insolvency Act;The Canadian Institute of Chartered Accountants or the CGA Association, where applicable;

Ex Parte

For one party only.  Ex parte refers to those proceedings where one of the parties has not received notice and therefore is neither present nor represented in a court of law.

Examination For Discovery

A legal proceeding whereby one party examines the party on the other side, usually under oath for the purpose of confirming facts and perhaps obtaining admissions from that other party.


To carry out.


Under the appropriate Act in each province are detailed listings of certain assets that are exempt from seizure by any execution creditor or by a Trustee in Bankruptcy. For exemptions in each province click here


To strike out; to obliterate, erase or mark for deletion.


Fair Market Value

That hypothetical value of a piece of property, given a willing purchaser and a willing vendor, and a reasonable amount of time for the property to be exposed to sale.

Final Statement of Receipts and Disbursements

This document, prepared by the trustee, must contain a complete account of all moneys received by the trustee out of the property of the bankrupt or otherwise, the amount of interest received by the trustee, all moneys disbursed and expenses incurred and the remuneration claimed by the trustee, together with full particulars, description and value of all property of the bankrupt that has not been sold or realized, setting out the reason why the property has not been sold or realized and the disposition made thereof. Once approved by the inspectors, it is submitted to the Superintendent for comments.

Financing Statement

Form prescribed under the Personal Property Security Act setting out essential information such as the name of the debtor and the collateral; the secured party must file the financing statement at the Personal Property Registry to perfect a security interest by registration.

First Meeting of Creditors

The meeting called by the Trustee in Bankruptcy to consider the affairs of the bankrupt or a debtor under a proposal.  There is not a meeting of creditors required for simple personal bankruptcy cases, unless the Superintendent of Bankruptcy or creditors holding 25% of the proven claims request one.

Back to top


Assets that are attached to or form part of a building once installed, or are permanently fixed to the property.


That action that a lender will take to repossess and sell a piece of property due to a default.

Fraudulent Preference

Under the Bankruptcy and Insolvency Act (BIA) this is the preferring by a debtor of one or more creditors over others by the payment to those creditors of some extraordinary amounts of money. Under the BIA, the Trustee can, under certain circumstances, set aside fraudulent preferences up to three months prior to the date of bankruptcy in the case of arm's length parties and one year in the case of non-arm's length parties. There are also other Acts that can be used to set aside these transactions.



The seizure of property, usually earnings, belonging to a debtor that are being held by a third party.  

General Security Agreement (GSA)

A contract under which all the personal property of a debtor is pledged as security to a lender. Goodwill

The intangible portion of a business's value attributed to its reputation or known expertise and makes it have more worth than just the value of its assets.


A person who pledges collateral for another or who guarantees to pay a certain debt if the debtor defaults.



The act of one party protecting or guaranteeing protection, or freedom from liability, of a third party for actions of that party.


Any deed, written contract or sealed agreement.


A mandatory or prohibitive order or judgment issued by a Court.


Unable to pay debts as they generally become due or where the value of debt exceeds the value of assets.

Insolvent Person

A person who is not bankrupt and whose liabilities exceed his assets and/or ability to pay. The BIA contains a statutory definition that differs from this general definition as follows: "means a person who is not bankrupt and who resides or carries on business in Canada whose liabilities to creditors provable as claims under the Bankruptcy and Insolvency Act amount to at least $1,000.00 and (a) who is, for any reason, unable to meet his obligations as they generally become due, or (b) who has ceased paying his current obligations in the ordinary course of business as they generally become due, or (c) the aggregate of whose property is not, at a fair valuation, sufficient or, if disposed of at a fairly conducted sale under legal process, would not be sufficient to enable payment of all his obligations, due and accruing due."

Back to top


A person or persons usually appointed by creditors at the first meeting of creditors, to assist and give direction to the trustee in the administration of the estate of the bankrupt. Inspectors may also be appointed pursuant to the provisions of a proposal.


Long-term or non-current assets that lack physical substance.

Interim Dividend

Dividend paid to creditors before the administration of the estate of the bankrupt has been finalized.

Interim Order

A temporary Court Order intended to be of limited duration, usually until the Court has had an opportunity of hearing the full case and the opportunity of making a Final Order.

Interim Receiver

A person appointed by the Court to protect the assets of a debtor during that time between the application to the Court for a Receiving Order and the time where the Receiving Order is handed down.

Involuntary Creditor

A creditor that has no control over the granting of the credit or the amount of the debt. The best example being your income tax. If you owe the government $5,000 for back taxes, you did not walk into a CRA office and ask to borrow five grand - you where suppose to file your return and pay your tax.  

Ipso Facto

By the fact itself.

Ipso Facto Clause

An “ipso facto clause” is a contractual term that generally allows a creditor to terminate a contract or a supply of service if an individual enters into proceedings under an insolvency statute.


Joint Assignment

Paragraph 155(f) of the Act, provides that in circumstances specified in directives of the Superintendent, the estates of individuals who, because of their relationship, could be reasonably be dealt with as one estate may be dealt with as one estate.

Joint and Several Liability

The liability of more than one person for which each person may be sued for the entire amount of the damages.

Joint Tenancy

The situation where two or more persons are equally owners of a property.  


A formal decision, sentence or Order of a Court of Justice.

Back to top

Judgement Proof

A term to describe assets or earnings protected from being seized by a creditor. i.e. assets a creditor cannot seize by going to court and getting a judgement.



Any legal obligation for which a person is responsible.


Security for the holder against a debtor's assets, usually arising by operation of law rather than express contract between the parties.

Lis Pendens

A dispute which is the subject of ongoing or pending litigation. A lis pendens can be filed at the Land Registry Office against real property to indicate to third parties that another party may have an interest in the property.


A dispute that results in Court action or a law suit.

Locality of Debtor

Means the principal place during the year immediately preceding the bankruptcy where the debtor has carried on business or where the debtor has resided, or where the greater portion of the property of the debtor is situated.

Letter of Comment

This refers to the letter from the Superintendent commenting on the trustee's statement of receipts and disbursements. When the statement needs to be taxed, this letter must be placed by the trustee before the taxing officer.


Under the Bankruptcy and Insolvency Act the government has imposed a levy over all dividends paid to creditors.  In Summary Administrations the levy is the first $200.00 and in Ordinary bankruptcies it is usually 5% Therefore, if a creditor is entitled to a $100 dividend, he will only get $95 with $5 being paid to the government.  



An alternate dispute mechanism whereby the mediator acts as a facilitator assisting the parties in coming to a mutually agreed settlement.  Under the Bankruptcy and Insolvency Act, mediation can be used, for example, if a creditor or the Trustee opposes a bankrupt's discharge.


An interest given on real property to guarantee the payment of a debt or execution of some action.

Mutatis Mutandis

With appropriate changes as applicable.  For example, in proposals all other sections of the Bankruptcy and Insolvency Act, over and above the section on proposals, applies to proposals, mutatis mutandis.



A solid affirmation to tell the truth, sworn in front of a Notary or Commissioner for Taking Oaths.  

Back to top

Official Receiver

A person deemed to be an officer of the Court who reports to the Superintendent of Bankruptcy and performs duties as specified by the Bankruptcy and Insolvency Act.


A command of a Court or Judge.

Orderly Payment of Debts

A scheme governed by Provincial Court to allow a debtor to pay his debts in accordance with the sections under Part X of the Bankruptcy and Insolvency Act.

Order Nisi

A judgment or decree that will become final on a particular date unless set aside or invalidated by certain specified contingencies. In mortgage foreclosure actions, it is the order of the Court which accelerates the amount due under the mortgage document.

Ordinary Creditor

A general creditor with no priority or security.


Pari Passu

Equally and without preference.  This term is often used in bankruptcy proceedings where creditors are said to be paid pari passu, or each creditor is paid pro rata in accordance with the amount of his claim.


An action that has to be taken before a security interest is secured.  

Personal Property

Property that is not real property; things moveable, also known as chattels.


A person who initiates a case in Court.  That person may also be referred to as the Claimant, Petitioner or Applicant.  The person who is being sued is generally called the Defendant or Respondent.


To place after in order of importance; to put off to a later time.

Power of Attorney

An instrument authorizing another to act as one's agent or attorney.

Power of Sale

The right to sell land when a mortgage is in default.

PPSA - Personal Property Security Act

The system, for example, in Ontario and most common-law provinces, where a person is required to register any interest that he has in the property of another before the security is valid.

Preferred Creditors

Those creditors, in the Bankruptcy and Insolvency Act specified in Section 136, that rank ahead of ordinary or unsecured creditors.  Some preferred creditors are employees for wages, and a landlord for some specified rental arrears.

Back to top


The term given to the fact that the information is in a directive issued by the Superintendent of Bankruptcy.

Prima Facie

On the face of it or at first sight.

Pro Rata

To divide proportionately amongst people having a claim.

Promissory Note

A written, signed promise to pay a certain amount of money on demand or at a certain date in the future.

Proof of Claim

A prescribed form that will be sent along with the notice of bankruptcy or notice of proposal. Creditors are required to fill out and return this form to the trustee, or to the administrator of the consumer proposal, in order to prove their claim. If a meeting of creditors is called, those creditors wishing to vote at the meeting must file their proof of claim with the trustee before the time set for the opening of the meeting.


Includes money, goods, things in action, land and every description of property, whether real or personal, legal or equitable, and whether situated in Canada or elsewhere, and includes obligations, easements and every description of estate, interest and profit, present or future, vested or contingent, in, arising out of or incident to property.


Under the BIA there are two types of proposals that can be made:

Division I, for companies and individuals with debt over $250,000, or

Division II - Consumer proposal, for debtor's with debts, excluding the mortgage on their principal residence, under $250,000.  In a consumer proposal the debtor is not automatically deemed bankrupt if the proposal is refused.

Provable Claims

All those debts of a bankrupt outstanding as of the date of the bankruptcy.

Proven Claims

Claims that have been filed in the proper form with support to prove what is owed. Once accepted by the trustee the claim will be used to determine voting at any meeting of creditors and for determining the amount of the dividends when there are monies to distribute.


Under the BIA a creditor may appoint another person to act on his behalf at a creditors meeting.

Back to top



Under the BIA there must be one person present, either in person or by proxy, at a meeting of creditors before the meeting is considered to be properly constituted. If there is no Quorum another meeting may be required to be called.



Having a rightful place on the list of claims for a bankrupt estate.

Real Property

Immovable property such as a building and land.


The amount of money received from the sale of property.


A person or corporation appointed by a person who holds a debenture or other security agreement, giving that person authority to take possession of and sell the asset(s) specified in the debenture.

Remuneration of Trustee

In estates under summary administration and in consumer proposals the trustee's, or administrator's, fees and expenses are set by the Bankruptcy and Insolvency Rules. But what does differ among trustees is the amount required to be paid up-front and and how fast you are required to pay.

Repairer's Lien

A mechanic or other person who, by bestowing money, skills or material on any chattel, is entitled to a lien on the chattel, which empowers that person to sell the chattel if he is not paid within a prescribed period of time.


Registered Retirement Income Fund.


Registered Home Ownership Savings Plan.


Registered Retirement Savings Plan.



The status a creditor has when he has security or a right in some property that he can sell or realize on.

Secured Creditor

A creditor that can take your property, called the security, if you default on your loan. The usual examples are your house or car. We all understand that if we do not pay our car loan the bank may reposess our car or if we do not pay our mortgage the bank may take and sell our home. It is important to note, however, that secured creditors are not usually affected by the filing of a bankruptcy or proposal. If you wish to keep the security and continue the payments it is rarely a problem.


Something given or pledged to a person who is lending money in order to secure or guarantee payment of that debt.

Back to top

Security Agreement

A verbal or written agreement between a secured party and a debtor giving the secured party a security interest in personal property; a written agreement is not necessary if the secured party is in possession of the collateral.


The transferring of property to another person or a gift.  Under certain circumstances, settlements are void against the Trustee and are brought back into the bankruptcy estate.


A dollar realization on assets that is not sufficient to clear the debt completely.

Sine Die

Adjourned without giving any future date of meeting or hearing.

Small Claims/Small Claims Court

A Court which has simplified rules, thus encouraging non-lawyers to attend at the Court without legal representation.

Statement of Affairs

The listing of a debtor's assets and liabilities and sworn under oath by the debtor before a lawyer or Commissioner for Taking Oaths.

Statement of Receipts and Disbursements

A statement prepared in the matter of receivership or agency appointment or a bankruptcy appointment, whereby the realizations and disbursements are set out.

Status Quo

The current state of affairs, or current position.

Stay of Proceedings

The stopping or preventing of legal actions undertaken.  In the Bankruptcy and Insolvency Act, there is a stay of proceedings in the case of a bankruptcy or in the case of a proposal.  This stops all legal actions against the company or person.

Superintendent of Bankruptcy (Office of the Superintendent - OSB)

A federally appointed official who oversees the administration of the Bankruptcy and Insolvency Act in Canada. The OSB helps ensure that bankruptcies and insolvencies are conducted in a fair and orderly manner. The OSB: supervises the administration of estates in bankruptcy, consumer proposals and receiverships, under the Bankruptcy and Insolvency Act (BIA); maintains a publicly accessible record of bankruptcy and insolvency proceedings under the BIA ; licenses private-sector trustees to administer estates and appoints administrators of consumer proposals; records and investigates complaints from creditors, debtors, and members of the general public regarding possible wrongdoing by someone involved in the insolvency process under the BIA; records and investigates complaints regarding the conduct of monitors under the CCAA; sets and enforces professional standards for the administration of estates filed under the BIA; and promotes awareness of the rights and responsibilities of the stakeholders in the insolvency system. The Superintendent's Web site address is:

Summary Administration

Under the BIA a summary administration bankruptcy is a consumer bankruptcy defined as a bankruptcy where realizable assets are less than $15,000.  Summary administration bankruptcies have stream lined procedures, making them less costly to administer.

Back to top

Surplus Income

Payments required, if any, to be made by a bankrupt to the trustee for distribution to creditors. The amount of the payment is fixed by the trustee, at the beginning of the bankruptcy, having regard to the standards established by the Superintendent and to the personal and family situation of the bankrupt. This amount is subject to change if there are material changes in the personal or family situation of the bankrupt, or if the official receiver so recommends.



The person under the Bankruptcy and Insolvency Act who administers bankruptcy and proposal estates.

Trustee's Report on the Bankrupt's Application for Discharge (also known as the 170 Report)

The trustee must prepare a report in the prescribed form with respect to the affairs of the bankrupt, the causes of the bankruptcy, the manner in which the bankrupt has performed the duties imposed under the Act or obeyed the orders of the court, the conduct of the bankrupt both before and after the date of the initial bankruptcy event, whether the bankrupt has been convicted of any offence under the Act, and any other fact, matter or circumstance that would justify the court in refusing an unconditional order of discharge. This report needs to be approved by the inspectors or provide the reasons why the inspectors did not approve it. The trustee is required to send a copy of this report to the creditors who have requested it.


Ultra Vires

Without authority.

Unsecured Creditor

A creditor that cannot take property from you without an Order of the Court. Unsecured creditors must first take legal action against you and win their case before they could attempt to seize your property.


Vesting of Property in Trustee

All property owned by the bankrupt or in which the bankrupt may have a beneficial interest, with certain exceptions, passes on to the trustee in bankruptcy.

Voting Letter

A document in which a proven creditor registers his vote for or against the acceptance of a proposal.

Back to top


Warehouseman's Lien

The charge that a warehouseman has on goods left for storage in his care.  The warehouseman has the right to hold onto the goods until he is paid or to sell the goods to recover his account.

Without Prejudice

Without dismissing, damaging or otherwise affecting a legal interest or demand; without detriment to existing right or claim; relates to fact, not to opinion. This expression is used when a person, in the desire to avoid litigation or dispute without admitting that the other party has a claim, offers to do something he need not do, such as to compromise a claim of his own or to pay when he feels he is not liable.


Form of written notice or command issued by a Court or other official. Can include Writ of Summons, Writ of Subpoena, Writ of Attachment, Writ of Habeas Corpus, etc.

Writ of Summons

Form of written notice prepared by the Plaintiff which is registered at the appropriate Court Registry, giving notice to the defendants that a legal action has been commenced against them and containing details of the Plaintiff's claims.