transferee liability. Tax. The liability of a transferee to pay taxes owed by the transferor. • This liability is limited to the value of the asset transferred. The Internal Revenue Service can, for example, force a donee to pay the gift tax when the donor who made the transfer cannot pay it. IRC (26 USCA) […]
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Insurance that covers bodily injuries or property damage suffered during the policy period. • Each instance of injury or damage is an “occurrence” that may trigger an insured’s entitlement to benefits. The terms of occurrence-based liability insurance policies are usu. broad, limited only by specific exclusions. — Also termed accident-based insurance.
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memorandum of association. English law. A legal document setting up a corporation — either with or without limited liability — and including the company’s name, purpose, and duration. See ARTICLES OF INCORPORATION.
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The taxation of an entity’s owners for the entity’s income without taxing the entity itself. • Partnerships and S corporations are taxed under this method. So are limited liability companies and limited liability partnerships unless they elect to be taxed as corporations by “checking the box” on their income tax returns. The election is made
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taxation. 1. The imposition or assessment of a tax; the means by which the state obtains the revenue required for its activities. [Cases: Internal Revenue 3001–3007; Taxation 1. C.J.S. Internal Revenue §§ 2, 4; Taxation §§ 1–3, 5–6.] double taxation. 1. The imposition of two taxes on the same property during the same period and
benefit of inventory. Civil law. The principle that an heir’s liability for estate debts is limited to the value of what is inherited, if the heir so elects and files an inventory of the estate’s assets. — Also termed bénéfice d’inventaire. [Cases: Descent and Distribution 119. C.J.S. Descent and Distribution §§ 112, 114, 123.]
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government-agency defense. Torts. An affirmative defense that immunizes a contractor from liability upon proof that the contractor acted on the government’s behalf as an agent or as a government officer. • This defense is extremely limited because of the difficulty of establishing the government-agent relationship. See Yearsley v. W.A. Ross Constr. Co., 309 U.S. 18,
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commodatum (kom-[schwa]-day-t[schwa]m), n. [Latin commodare “to lend”] Roman & civil law. The gratuitous lending of goods to be used by the borrower and then returned undamaged to the lender. • This ar-rangement is for the sole benefit of the borrower. It is one of three types of contracts for permissive use, the other two being
care, n. 1. Serious attention; heed (written with care). 2. Under the law of negligence or of obligations, the conduct demanded of a person in a given situation. • Typically, this involves a person’s giving attention both to possible dangers, mistakes, and pitfalls and to ways of minimizing those risks (standard of care). See DEGREE