quia timet (kwI-[schwa] tI-m[schwa]t orkwee-[schwa] tim-et). [Latin “because he fears”] A legal doctrine that allows a person to seek equitable relief from future probable harm to a specific right or interest. [Cases: Equity 17. C.J.S. Equity § 55.] “A second class of cases where equity courts act to prevent injury are known as ‘quia timet’ […]
A corporate bond secured by the corporation’s net income, after the payment of interest on senior debt. • Sometimes this type of bond is a cumulative-income bond, in which case, if the income in any year is insufficient to pay the full interest, the deficit is carried forward as a lien on any future income.
An interest in land, created by will, that takes effect in the future and depends on a future contingency; a limitation, by will, of a future estate or interest in land when the limitation cannot, consistently with legal rules, take effect as a remainder. • An executory devise, which is a type of conditional limitation,
divide-and-pay-over rule. Wills & estates. The principle that if the only provisions in a testamentary disposition are words ordering that payment be made at some time after the testator’s death, time will be of the essence and the interest is future and contingent rather than vested and immediate. [Cases: Wills 630(6). C.J.S. Wills § 1339.]
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possibility. 1. An event that may or may not happen. 2. A contingent interest in real or personal property. bare possibility. See naked possibility. naked possibility. A mere chance or expectation that a person will acquire future property. • A conveyance of a naked possibility is usu. void for lack of subject matter, as in
forward-rate agreement. A contract that specifies what the interest rate on an obligation will be on some future date. — Abbr. FRA.
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board of trade. 1. A federation of business executives dedicated to advancing and protecting business interests. 2. An organization that runs a commodities exchange. See CHICAGO BOARD OF TRADE. [Cases: Commodity Futures Trading Regulation 6. C.J.S. Securities Regulation § 455.] 3. Hist. The Lords of the Committee of the Privy Council that had jurisdiction over
commitment, n. 1. An agreement to do something in the future, esp. to assume a financial obligation (the shipper made a firm commitment to deliver the goods). 2. The act of entrusting or giving in charge (commitment of money to the bank). 3. The act of confining a person in a prison, mental hospital, or
bargain, n. An agreement between parties for the exchange of promises or performances. • A bargain is not necessarily a contract because the consideration may be insufficient or the transaction may be illegal. See BARGAIN SALE; informal contract under CONTRACT. [Cases: Contracts 1. C.J.S. Contracts §§ 2–3, 9, 12.] — bargain, vb. “A bargain is
arbitrage (ahr-b[schwa]-trahzh), n. The simultaneous buying and selling of identical securities in different markets, with the hope of profiting from the price difference in those markets. — Also termed space arbitrage. [Cases: Securities Regulation 53.17(4). C.J.S. Securities Regulation § 153.] — arbitrager (ahr-b[schwa]-trazh-[schwa]r), arbitrageur (ahr-b[schwa]-trah-zh[schwa]r), n. covered-interest arbitrage. The simultaneous investment in a currency and