imated tax. (1926) A tax paid quarterly by a taxpayer
not subject to withholding (such as a self-employed
person) based on either the previous year's tax liabil
ity or an estimate of the current year's tax liability.
[Cases: Internal Revenue C=.'4827, 4832, 5219.40;
Taxation (;::>3554.]
excess-profits tax. (1918) A tax levied on profits that
are beyond a business's normal profits . This type
oftax is usu. imposed only in times ofnational emer
gency (such as war) to discourage profiteering. [Cases:
Internal Revenue ~4130-4136.]
excise lieu property tax. A tax on the gross premiums
received and collected by deSignated classes ofinsur
ance companies. [Cases: Taxation ~2243.]
excise tax. See EXCISE.
export tax. A tax levied on merchandise and goods
shipped or to be shipped out of a country.
flat tax. (1952) A tax whose rate remains fixed regard
less of the amount ofthe tax base . Most sales taxes
are flat taxes. -Also termed proportional tax. Cf.
progressive tax; regressive tax. [Cases: Taxation
3672, 3673.]
floor tax. A tax imposed on distilled spirits stored in a
warehouse. [Cases: Internal Revenue ~4314.]
franchise tax. A tax imposed on the privilege of
carrying on a business (esp. as a corporation), usu. measured by the business's income. See FRANCHISE.
[Cases: Taxation C==>2233.]
general tax. (l6c) 1. A tax that returns no special
benefit to the taxpayer other than the support ofgov
ernmental programs that benefit all. [Cases: Taxation
C==>2001, 2010.] 2. A property tax or an ad valorem
tax that is imposed for no special purpose except to
produce public revenue. Cf. special assessment under
ASSESSMENT.
generation-skipping tax. (1977) A tax on a property
transfer that skips a generation . The tax limits the
use of generation-skipping techniques as a means of
avoiding estate taxes. [Cases: Internal Revenue
4220.]
generation-skipping transfer tax. (1984) A gift or estate
tax imposed on a generation-skipping transfer or a
generation-skipping trust. IRe (26 USCA)  2601
2663. Sometimes shortened to generation-skipping
tax; transfer tax. See DIRECT SKIP; GENERATION
SKIPPING TRANSFER; generation-skipping trust under
TRUST; TAXABLE DISTRIBUTION. [Cases: Internal
Revenue C:='4220-4228.]
gift tax. (1925) A tax imposed when property is volun
tarily and gratuitously transterred . Under federal
law, the gift tax is imposed on the donor, but some
states tax the donee. [Cases: Internal Revenue C==>
4200; Taxation ~3381.1
graduated tax. l. A tax employing a rate schedule with
higher marginal rates for larger taxable bases (income,
property, transfer, etc.) 2. See progressive tax.
gross-income tax. (1916) A tax on gross income,
possibly after the deduction for costs of goods sold,
rather than on net profits; an income tax without
allowance for expenses or deductions. See gross
income under INCOME. [Cases: Internal Revenue C==>
3110; Taxation ~3447.]
gross-receipts tax. A tax on a business's gross receipts,
without a deduction for costs ofgoods sold, or allow
ance for expenses or deductions. See GROSS RECEIPTS.
[Cases: Taxation C:='3604.]
head tax. 1. See poll tax. 2. HEAD MONEY (3).
hidden tax. (1935) A tax that is paid, often unknow
ingly, by someone other than the person or entity on
whom it is levied; esp., a tax imposed on a manu
facturer or seller (such as a gasoline producer) who
passes it on to consumers in the form ofhigher sales
prices.
highway tax. A tax raised to pay for the construc
tion, repair, and maintenance of highways. [Cases:
Highways ~123.]
holding-company tax. A federal tax imposed on undis
tributed personal-holding-company income after
allOWing deductions for such things as dividends
paid. IRC (26 USCA)  545. -Also termed personal
holding-company tax. [Cases: Internal Revenue
3850.1-3858.]

illegal tax. 1. A tax that violates the law, esp. the con
stitution. For an example, see poll tax. 2. See erro
neous tax.
income tax. (18c) A tax on an individual's or entity's
net income . The federal income tax -set forth in
the Internal Revenue Code is the federal govern
ment's primary source of revenue, and most states
also have income taxes. Cf. property tax; EXCISE.
[Cases: Internal Revenue C='3065-4122; Taxation
(;::::>3401.]
indirect tax. (18c) A tax on a right or privilege, such as
an occupation tax or franchise tax . An indirect tax
is often presumed to be partly or wholly passed on
from the nominal taxpayer to another person. [Cases:
Licenses
inheritance tax. (I8c) 1. A tax imposed on a person who
inherits property from another (unlike an estate tax,
which is imposed on the decedent's estate) . 1here
is no federal inheritance tax, but some states have an
inheritance tax (though it is creditable or deductible
under the federal estate tax). Also termed succes
sion tax; death tax. Cf. estate tax. [Cases: Taxation
G::::3301.] 2. Loosely, an estate tax.
in lieu tax. A tax imposed as a substitute for another.
[Cases: Taxation ('::)2295.]
intangible tax. A state tax imposed on the privilege
of owning, transferring, deviSing, or otherwise
dealing with intangible property. [Cases: Taxation
(;::::>2061.]
interest-equalization tax. A tax imposed on a U.S. citi
zen's acquisition of stock issued by a foreign issuer
or a debt obligation of a foreign obligor, but only if
the obligation did not mature within a year.  'Ibis
tax was repealed in the mid-1970s. IRC (26 USCA)
 4911.
kiddie tax. (l8c) Slang. A federal tax imposed on a
child's unearned income (above an exempt amount)
at the parents' tax rate if the parents' rate is higher
and if the child is under 18 years old. -Also termed
child's income tax.
land tax. See property tax.
legacy tax. A tax on a legacy, often with the provision
that the rate increases as the relationship ofthe legatee
becomes more remote from the testator . In English
law, this tax was known as a legacy duty; it was abol
ished in 1949. Cf. collateral-inheritance tax. [Cases:
Taxation (;::::>3301.]
luxury tax. (1925) An excise tax imposed on high
priced items that are not deemed necessities (such as
cars costing more than a specified amount). Cf. sin
tax. [Cases: Taxation (;::::>3602.]
minimum tax. See alternative minimum tax.
nanny tax. (1993) Slang. A federal social-security tax
imposed on the employer of a domestic employee if
the employer pays that employee more than a spec
ified amount in total wages in a year. The term,
which is not a technical legal phrase, was popularized in the mid-1990s, when several ofPresident Clinton's
nominees were found not to have paid the social
security tax for their nannies.
occupation tax. (1879) An excise tax imposed for the
privilege of carrying on a business, trade, or profes
sion. For example, many states require lawyers to
pay an occupation tax. Also termed occupational
tax. [Cases: Licenses (;::::, 1.]
payroll tax. (1936) 1. A tax payable by an employer
based on its payroll (such as a SOcial-security tax or
an unemployment tax). [Cases: Internal Revenue
C~)4849; Taxation ('::::::3560.] 2. A tax collected by
an employer from its employees' gross pay (such as
an income tax or a social-security tax). See withhold
ing tax.
per capita tax. See poll tax.
personal-holding-company tax. See holding-company
tax.
personal-property tax. (1863) A tax on personal
property (such as jewelry or household furniture)
levied by a state or local government. [Cases: Taxation
<:-'-:>2176.]
pickup tax. Slang. A state death tax levied in an amount
equal to the federal death-tax credit. Also termed
sponge tax; slack tax. [Cases: Taxation ('::::::>3301.]
poll tax. (l7c) A fixed tax levied on each person within
a jurisdiction . The 24th Amendment prohibits the
federal and state governments from imposing poll
taxes as a condition for voting. Also termed per
capita tax; capitation tax; capitation; head tax. [Cases:
Elections (;::::>83; Taxation (;::::>2050.]
premium tax. A state tax paid by an insurer on
premiums paid by the insured. [Cases: Taxation
2243.]
privilege tax. A tax on the privilege of carrying on a
business or occupation for which a license or fran
chise is required. [Cases: Licenses
progressive tax. (1886) 1. A tax structured so that the
effective tax rate increases more than proportion
ately as the tax base increases, or so that an exemp
tion remains flat or diminishes . With this type of
tax, the percentage ofincome paid in taxes increases
as the taxpayer's income increases. Most income taxes
are progressive, so that higher incomes are taxed at
a higher rate. But a tax can be progressive without
using graduated rates. Also termed graduated tax.
Cf. regressive tax;jlat tax. Internal Revenue
C~3545-3552; Taxation 2. See graduated
tax.
property tax. (1808) A tax levied on the owner of
property (esp. real property), usu. based on the
property's value . Local governments often impose
property taxes to finance school districts, municipal
projects, and the like. Also termed (specif.) land
tax. Cf. income tax; EXCISE. [Cases: Taxation
2170-2216.]
proportional tax. Seeflat tax.

regressive tax. (1893) A tax structured so that the effec
tive tax rate decreases as the tax base increases .
With this type oftax, the percentage of income paid
in taxes decreases as the taxpayer's income increases.
A flat tax (such as the typical sales tax) is usu. consid
ered regressive -despite its constant rate because
it is more burdensome for low-income taxpayers than
high-income taxpayers. A growing exemption also
produces a regressive tax effect. C[ progressive tax;
flat tax. [Cases: Internal Revenue (;:::::>3545-3552;
Taxation (;:::::>3526.]
repressive tax. See sin tax.
sales tax. (1921) A tax imposed on the sale of goods
and services, usu. measured as a percentage of their
price. -Also termed retail sales tax. See flat tax.
[Cases: Taxation (;:::::>3602.]
''While the term 'sales tax' encompasses a large variety of
levies. the term often refers to the 'retail sales tax,' where
the tax is separately stated and collected on a transaction
by-transaction basis from the consumer; although the
economic burden of the sales tax falls upon the consumer,
the seller has the statutory duty to collect the tax for the
taxing jurisdiction." 68 Am. Jur. 2d Sales and Use Tax  1,
at 11 (1993).
self-employment tax. The Social-Security and Medicare
tax imposed on the net earnings of a self-employed
person. [Cases: Internal Revenue (;:::::>4381.]
service-occupation tax. A tax imposed on persons who
sell services, usu. computed as a percentage of net cost
ofthe tangible personal property (e.g., materials and
goods) transferred as an incident to the sale. [Cases:
Licenses C= 1; Taxation (;::::::>3658.]
severance tax. A tax imposed on the value of oil, gas,
timber, or other natural resources extracted from
the earth. [Cases: Logs and Logging Mines
and Minerals (;::::::>87.]
Sinking-fund tax. A tax to be applied to the repayment
of a public loan.
sin tax. (I97l) An excise tax imposed on goods or activ
ities that are considered harmful or immoral (such
as cigarettes, liquor, or gambling). -Also termed
repreSSive tax. Cf. luxury tax.
slack tax. See pickup tax.
special tax. (ISc) 1. A tax levied for a unique purpose.
2. A tax (such as an inheritance tax) that is levied in
addition to a general tax. [Cases: Taxation
specific tax. (ISc) A tax imposed as a fixed sum on each
article or item of property of a given class or kind
without regard to its value.
sponge tax. See pickup tax.
stamp tax. (ISc) A tax imposed by requiring the
purchase of a revenue stamp that must be affixed to
a legal document (such as a deed or note) before the
document can be recorded. Also termed documen
tary-stamp transfer tax. [Cases: Internal


or note) before the
document can be recorded. Also termed documen
tary-stamp transfer tax. [Cases: Internal Revenue
4390-4409.J
state tax. (18c) 1. A tax usu. in the form ofa sales or
income tax -earmarked for state, rather than federal or municipal, purposes. [Cases: Taxation (;:::::>2001.]
2. A tax levied under a state law.
stock-transfer tax. A tax levied by the federal govern
ment and by some states on the transfer or sale of
shares of stock. -Often shortened to transfer tax.
[Cases: Internal Revenue (;:::::>4404; Taxation
2218.]
"Some state statutes impose special taxes, usually in the
form of a stamp tax, upon sales and agreements for sale
and other transfers of stock in corporations. Such a tax
is in the nature of an excise tax on the transfer. Taxes on
the issuance and transfer of corporate stock, commonly
known as 'stock transfer taxes' and payable by means of
stamps, are constitutional, as within the power of state
governments." 71 Am. Jur. 2d State and Local Taxation
 643, at 896 (1973).
stopgap tax. A tax, usu. temporary, levied during the
term of a budget to cover an unexpected deficit.
Also termed additional tax.
succession tax. See inheritance tax (1).
surtax. (1881) An additional tax imposed on some
thing being taxed or on the primary tax itself. [Cases:
Taxation (;:::::>3527.]
tonnage tax. See tonnage duty under DUTY (4).
transfer tax. (1890) 1. A tax imposed on the transfer
of property, esp. by will, inheritance, or gift. [Cases:
Internal Revenue (;::::::>4220-4228; Taxation (;:::::>22l8,
3301, 3381.] 2. See stock-transfer tax. 3. See genera
tion-skipping transfer tax.
undistributed-earnings tax. See accumulated-earnings
tax.
unemployment tax. (1937) A tax imposed on an
employer by state or federal law to cover the cost
of unemployment insurance . The Federal Unem
ployment Tax Act (FUTA) provides for a tax based
on a percentage of employee earnings but allows a
credit for amounts paid in state unemployment taxes.
[Cases: Internal Revenue (;:::::>4305.]
unified transfer tax. The federal transfer tax imposed
equally on property transferred during life or at death.
_ Until 1977, gift-tax rates were lower than estate
taxes. -Also termed unified estate-and-gift tax.
unitary tax. A tax of income earned locally by a
business that transacts business through an affiliated
company outside the state or country. See UNITARY
BUSINESS. [Cases: Taxation C=3477.]
unrelated-business-income tax. (1962) A tax levied on
a not-for-profit organization's taxable income, such
as advertiSing revenue from a publication. [Cases:
Internal Revenue (;:::::>4068; Taxation (;:::::>3488.]
use tax. A tax imposed on the use of certain goods
that are bought outside the taxing authority's juris
diction. -Use taxes are deSigned to discourage the
purchase ofproducts that are not subject to the sales
tax. [Cases: Taxation (;::::::>3603.]
value-added tax. (1935) A tax assessed at each step in
the production of a commodity, based on the value
added at each step by the difFerence between the

commodity's production cost and its selling price.
 A value-added tax -which is levied in several
European countries effectively acts as a sales tax
on the ultimate consumer. -Abbr. VAT. [Cases:
Taxation C=;3602.]
windfall-profits tax. (1973) A tax imposed on a business
or industry as a result ofa sudden increase in profits.
 An example is the tax imposed on oil companies in
1980 for profits resulting from the Arab oil embargo
of the 19705. [Cases: Internal Revenue C=>4338.]
window tax. Hist. English law. A tax imposed on a house
containing a certain number of windows (uau. more
than six). Itwas established under the Taxation Act
of 1695 and replaced with a tax on inhabited houses
established under the House Tax of 1851. See HODSE
DUTY.
withholding tax. (1927) A portion of income tax
that is subtracted from salary, wages, dividends, or
other income before the earner receives payment.
The most common example is the income tax and
SOcial-security tax withheld by an employer from an
employee's pay. [Cases: Internal Revenue ~'='4849;
Taxation C=> 3560.]
taxable, adj. (16c) 1. Subject to taxation <interest earned
on a checking account is taxable income>. [Cases:
Internal Revenue 10: Taxation e:-::3446-3477.]
2. (Oflegal costs or fees) assessable <expert-witness fees
are not taxable court costs>. [Cases: Costs C:=-146-194;
Federal Civil Procedure C=>2742.]
taxable cost. See COST (3).
taxable distribution. (1927) A generation-skipping
transfer from a trust to the beneficiary (Le., the skip
person) that is neither a direct skip nor a taxable ter
mination. See GENERATION-SKIPPING TRANSFER;
generation-skipping tramfer tax under TAX; genera
tion-skipping trust under TRUST; SKIP PERSON. [Cases:
Internal Revenue C:::04224.j
taxable estate. See ESTATE (3).
taxable gift. See GIFT.
taxable income. See INCOME.
taxable termination. (1988) A taxable event that occurs
when (1) an interest in a generation-skipping trust
property terminates (as on the death ofa skip person's
parent who possessed the interest), (2) no interest in the
trust is held by a nonskip person, and (3) a distribution
may be made to a skip person . Before the creation
of taxable terminations in 1976, a taxpayer could
create a trust that paid income to a child for life, then
to that child's child for lite, and so on without incur
ring an estate or gift tax liability at the death of each
generation's beneficiary. See GENERATION-SKIPPING
TRANSFER; generation-skipping transfer tax under TAX;
generation-skipping trust under TRUST; SKIP PERSON.
[Cases: Internal Revenue C=>4224.J
taxable year. See tax year under YEAR.
tax accounting. lhe accounting rules and methods used
in determining a taxpayer's liability. tax-anticipation bill. A short-term obligation issued by
the U.S. Treasury to meet the cash-flow needs of the
government . Corporations can tender these bills at
par value to make quarterly tax payments. Abbr.
TAB.
tax-anticipation note. See NOTE (1).
tax-anticipation warrant. See WARRANT (2).
tax-apportionment clause. A testamentary provision
directing how inheritance and estate taxes should be
paid. [Cases: Internal Revenue C=>4824; Taxation
3346.]
tax assessment. See ASSESSMENT (3).
tax assessor. See ASSESSOR (1).
taxation. (14c) 1. Ihe imposition or assessment of a
tax; the means by which the state obtains the revenue
required for its activities. [Cases: Internal Revenue C=>
300l-3007; Taxation C;;;-2001.]
double taxation. (18c) 1. The imposition of two taxes
on the same property during the same period and
for the same taxing purpose. [Cases: Taxation
2150-2156,3435.] 2. The imposition of two taxes on
one corporate profit; esp., the structure of taxation
employed by Subchapter C of the Internal Revenue
Code, under which corporate profits are taxed twice,
once to the corporation when earned and once to the
shareholders when the earnings are distributed as
dividends. 3. Int'llaw. The imposition ofcomparable
taxes in two or more states on the same taxpayer for
the same subject matter or identical goods. -Also
termed duplicate taxation.
duplicate taxation. See double taxation.
equal and uniform taxation. A tax system in which
no person or class of persons in the taxing district
whether it be a state, city, or county is taxed at
a different rate from others in the same district on
the same value or thing. [Cases: Taxation C=>2134,
3428,3627.]
pass-through taxation. (1998) 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 on Form 8832 (Entity Classification Election).
See Treas. Reg.  301.7701-(3)(b)(1). -Also termed
conduit taxation. [Cases: Internal Revenue C=>3896,
3920-3924.]
2. TAXATION OF COSTS.
taxation ofcosts. The process offixing the amount of
litigation-related expenses that a prevailing party is
entitled to be awarded. -Sometimes shortened to
taxation. [Cases: Costs C=> 195; Federal Civil Proce
dure C=>2742.l.J
tax audit. See Al:DIT.

tax avoidance. (1927) The act of taking advantage of
legally available tax-planning opportunities in order
to minimize one's tax liability. Cf. TAX EVASION. [Cases:
Internal Revenue ~3056-3058; Taxation ~2220.1
tax base. The total property, income, or wealth subject to
taxation in a given jurisdiction; the aggregate value of
the property being taxed by a particular tax. Cf. BASIS
(2).
tax basis. See BASIS (2).
tax-benefit doctrine. See TAX-BENEFIT RULE.
tax-benefit rule. (1942) The principle that if a taxpayer
recovers a loss or expense that was deducted in a
previous year, the recovery must be included in the
current year's gross income to the extent that it was pre
viously deducted. -Also termed tax-benefit doctrine.
[Cases: Internal Revenue~3089, 3138.]
tax bracket. (1923) A categorized level ofincome subject
to a particular tax rate under federal or state law <28%
tax bracket>. [Cases: Internal Revenue ~3545-3552;
Taxation ~3525-3529.]
tax certificate. An instrument issued to the buyer of
property at a tax sale, certifying the sale and entitling
the buyer to a tax deed and possession of the property
upon the expiration of the redemption period. -Ifthe
property is redeemed, the tax certificate is voided. See
REDEMPTION PERIOD; tax sale under SALE. Cf. tax deed
under DEED. [Cases: Taxation ~2986, 3064.]
tax court. (1841) 1. TAX COURT, U.S. 2. In some states, a
court that hears appeals in nonfederal tax cases and
can modify or change any valuation, assessment, clas
sification, tax, or final order that is appealed. [Cases:
Taxation ~2691, 3548, 3695.]
Tax Court, U.S. A federal court that hears appeals by
taxpayers from adverse IRS decisions about tax defi
ciencies. _ The Tax Court was created in 1942, replac
ing the Board of Tax Appeals. -Abbr. TC. [Cases:
Internal Revenue ~4645-4655.]
tax credit. (1946) An amount subtracted directly from
one's total tax liability, dollar for dollar, as opposed to
a deduction from gross income. - Often shortened to
credit. ct DEDUCTION (2). [Cases: Internal Revenue~
3520-3537; Taxation (;;)3517.]
child-and dependent-care tax credit. (2001) A tax
credit available to a person who is employed full-time
and who maintains a household for a dependent child
or a disabled spouse or dependent. [Cases: Internal
Revenue ~3520, 3534; Taxation ~3517.1
earned-income credit. (1927) A refundable federal tax
credit on the earned income of a low-income worker
with dependent children. _ The credit is paid to the
taxpayer even if it exceeds the total tax liability. See
IRC (26 USCA)  32. -Abbr. Ere. [Cases: Internal
Revenue ~3532.]
foreign tax credit. (I928) A tax credit against U.S.
income taxes for a taxpayer who earns income
overseas and has paid foreign taxes on that income. See FOREIGN-EARNED-INCOME EXCLUSION. [Cases:
Internal Revenue ~4098.]
"Since direct foreign investments and business operations
of United States persons often attract foreign income taxes
along with the baseline U.S. tax, the specter of double
taxation is bound to haunt the pursuit of foreign income.
The principal accommodation of the U.S. tax system to
the possibility of source-based taxation by other countries
is the foreign tax credit. From a simple idea a dollar
for-dollar reduction of U.S. tax for income taxes paid to
foreign countries the foreign tax credit has evolved into
an elaborate statutory structure capable of


S. tax for income taxes paid to
foreign countries the foreign tax credit has evolved into
an elaborate statutory structure capable of engulfing an
entire professional career." Joseph Isenbergh, International
Taxation 14 (2000).
investment tax credit. (1965) A tax credit intended to
stimulate business investment in capital goods by
allowing a percentage of the purchase price as a credit
against the taxpayer's income taxes. -The Tax Reform
Act of 1986 generally repealed this credit retroactively
for most property placed in service after January 1,
1986. -Abbr. ITe. [Cases: Internal Revenue (;:=>
3523; Taxation ~3517.1
unified credit. See unified estate-and-giJt tax credit.
unified estate-and-gift tax credit. (1988) A tax credit
applied against the federal unified transfer tax. IRC
(26 USCA)  2001(c)(2). -Often shortened to unified
credit. Also termed applicable exclusion credit.
[Cases: Internal Revenue ~4182.30.1
tax deduction. See DEDUCTION (2).
tax deed. See DEED.
tax-deferred, adj. (1948) Not taxable until a future date
or event <a tax-deferred retirement plan>. [Cases:
Internal Revenue ~3575-3615.]
tax-deferred account. See ACCOUNT.
tax-deferred annuity. See 403(b) plan under EMPLOYEE
BENEFIT PLAN.
tax deficiency. See DEFICIENCY (2).
tax-deficiency notice. See NLNETY-DAY LETTER.
tax denier. See TAX PROTESTER.
tax evasion. (1922) Ihe willful attempt to defeat or cir
cumvent the tax law in order to illegally reduce one's
tax liability. -Tax evasion is punishable by both civil
and criminal penalties. -Also termed tax fraud. Cf.
TAX AVOIDANCE. [Cases: Internal Revenue ~5263;
Taxation ~3232, 3563, 3712.]
tax:-exernpt, adj. (1923) 1. By law not subject to taxation
<a tax-exempt charity>. [Cases: Internal Revenue
4045-4071; Taxation (;:=2309-2356, 3518, 3664.] 2.
Bearing interest that is free from income tax <tax
exempt municipal bonds>. Also termed tax-free.
tax-exempt bond. See BOND (3).
tax ferret. A private person engaged in the business of
searching for taxable property that has somehow not
been taxed. [Cases: Internal Revenue <::='4442.]
tax foreclosure. See FORECLOSURE.
tax fraud. See TAX EVASION.
tax-free, adj. See TAX-EXEMPT.

1600 tax-free exchange
tax-free exchange. (1927) A transfer of property for
which the tax law specifically defers (or possibly
exempts) income-tax consequences. -For example, a
transfer ofproperty to a controlled corporation under
IRC (26 USCA)  351(a) and a like-kind exchange under
IRC (26 USCA)  1031(a). Also termed 1031 exchange.
Cf. 1031 EXCHANGE. [Cases: Internal Revenue ~3184;
Taxation (~3466.]
tax haven. (l8c) A jurisdiction, esp. a country, that
imposes little or no tax on the profits from transactions
carried on there or on persons resident there.
"Among the reasons for this complexity [in international
taxation] is the elusive nature of tax havens. A tax haven is
not always immediately obvious. What makes a particular
environment a tax haven is not invariably a low rate of
tax, but relations with other tax regimes that permit the
ultimate deflection of income to a lowtax environment
with which the income may have little indigenous connec
tion." Joseph Isenbergh, International Taxation 16 (2000).
taxhome. (18c) A taxpayer's principal business location,
post, or station. _ Travel expenses are tax-deductible
only if the taxpayer is traveling away from home.
[Cases: Internal Revenue ~3343.]
tax-identification number. A nine-digit tracking
number assigned by the Internal Revenue Service
to the tax accounts of businesses and also to entities
or individuals who are required to file business tax
returns. -Abbr. TIN. Often shortened to tax i.d.
Also termed employer-identification number (EIN);fed
eral-employer-identification number (FEIN).
tax incentive. (l8c) A governmental enticement, through
a tax benefit, to engage in a particular activity, such as
the contribution of money or property to a qualified
charity.
tax-increment financing. A technique used by a munici
pality to finance commercial developments usu. involv
ing issuing bonds to finance land acquisition and other
up-front costs, and then using the additional property
taxes generated from the new development to service
the debt. Abbr. TIP. [Cases: Municipal Corporations
(;=953.]
taxing district. See DISTRICT.
taxing power. See POWER (3).
tax injunction act. A federal law prohibiting a federal
court from interfering with the assessment or collec
tion of any state tax where the state affords a plain,
speedy, and efficient remedy in its own courts. 28 USCA
 1341. [Cases: Federal Courts ~27.]
tax law. (l8c) 1. INTERNAL REVENUE CODE. 2. The statu
tory, regulatory, constitutional, and common -law rules
that constitute the law applicable to taxation. 3. The
area oflegal study dealing with taxation.
tax lease. See LEASE.
tax levy. See LEVY (1).
tax liability. (1932) The amount that a taxpayer legally
owes after calculating the applicable tax; the amount
of unpaid taxes.
tax lien. See LIEN. tax list. An official schedule listing the taxable items
within a jurisdiction; ROLL (2).
tax loophole. See LOOPHOLE.
tax-loss carryback. See CARRYBACK.
tax-loss carryforward. See CARRYOVER.
tax-loss carryover. See CARRYOVER.
tax negligence. See NEGLIGENCE.
tax-option corporation. See S corporation under COR
PORATION.
taxpayer. One who pays or is subject to a tax. Cf. TAX
PROTESTER. [Cases: Internal Revenue ('':::)3560;
Taxation 3480-3495.J
taxpayers' bill of rights. (1988) Federal legislation
granting taxpayers specific rights when dealing with
the Internal Revenue Service, such as the right to have
representation and the right to receive written notice
of a levy 30 days before enforcement.
taxpayers' lists. Written exhibits required of taxpayers
in some taxing districts, listing all property owned by
them and subject to taxation, used as a basis for assess
ment and valuation. Cf. ROLL (2). [Cases: Taxation
2462, 2493.]
taxpayer-standing doctrine. (1977) Constitutional law.
The principle that a taxpayer has no standing to sue the
government for allegedly misspending the public's tax
money unless the taxpayer can demonstrate a personal
stake and show some direct injury. [Cases: Constitu
tional Law ~683;Municipal Corporations
tax-preference items. (1971) Certain items that, even
though lawfully deducted in arriving at taxable income
for regular tax purposes, must be considered in cal
culating a taxpayer's alternative minimum tax. See
alternative minimum tax under TAX. [Cases: Internal
Revenue (';:~)3550.]
tax protest. A taxpayer's formal, usu. written, state
ment that he or she does not acknowledge a legal or
just basis for the tax or a duty to pay it. _ The purpose
of the protest is to make clear that any payment is
made "under protest" and to avoid waiving the right to
recover the money paid ifthe tax is later invalidated.
tax protester. 1. One who files a tax protest. 2. A person
who opposes tax laws and seeks or employs ways, often
illegal, to avoid the laws' effects; esp., a person who
refuses to pay a tax on grounds that the government has
no authority to levy the tax. -Sometimes spelled tax
protestor. Also termed tax denier. Cf. TAXPAYER.
illegal tax protester. Hist. The name once used by
the IRS to deSignate a person believed to have used
illegal means to avoid or reduce tax liability. -In the
Internal Revenue Service Restructuring and Reform
Act of 1998, Congress forbade the IRS to continue
using the labeL Today the term nonfiler is typically
used instead.
tax-protest scheme. A plan deSigned to avoid or express
dissatisfaction with tax laws, usu. by unlawful means.
The most common schemes involve illegally evading or

1601
reducing tax liabilities, or interfering with the admin
istration of the tax laws.
tax rate. (1876) A mathematical figure for calculating
a tax, usu. expressed as a percentage. [Cases: Internal
Revenue (>:;3545-3552; Taxation (;::;3525-3529, 3672,
3673.]
average tax rate. (1895) A taxpayer's tax liability
divided by the amount of taxable income. Also
called effective tax rate.
marginal tax rate. (1939) In a tax scheme, the rate
applicable to the last dollar of income earned by the
taxpayer.  This concept is useful in calculating the
tax effect of receiving additional income or claiming
additional deductions. See TAX BRACKET.
tax-rate schedule. (1951) A schedule used to determine
the tax on a given level oftaxable income and based on
a taxpayer's status (for example, married filing a joint
income-tax return). Also termed tax table. [Cases:
Internal Revenue (>:;3545-3552; Taxation (;::; 3525
3529.]
tax rebate. See TAX REFUND.
tax redemption. See REDEMPTION.
tax refund. Money that a taxpayer overpaid and is thus
returned by the taxing authority. -Also termed tax
rebate. [Cases: Internal Revenue (;::-)4950; Taxation C=>
2773,3555,3699.]
tax return. (1870) An income-tax form on which a
person or entity reports income, deductions, and
exemptions, and on which tax liability is calculated.
Often shortened to return. -Also termed income-tax
return. [Cases: Internal Revenue (;::;:)4470; Taxation
(;::::' 3539, 3688.]
amended return. (1861) A return filed after the original
return, usu. to correct an error in the original.
[Cases: Internal Revenue (>;/4479; Taxation
3539,3688.]
consolidated return. A return that reflects combined
financial information for a group of affiliated cor
porations. [Cases: Internal Revenue (;::::'3865-3880;
Taxation (>~~3541.]
false return. See FALSE RETURN (2).
information return. (1920) A return, such as a W-2,
filed by an entity to report some economic informa
tion related to, but other than, tax liability.
joint return. (1930) A return filed together by spouses.
 A joint return can be filed even if only one spouse
had income, but each spouse is usu. individually liable
for the tax payment. [Cases: Internal Revenue (;::::'
4481; Taxation (;::::' 3540.]
separate return. (1913) A return filed by each spouse
separately, showing income and liability. Unlike
with a joint return, each spouse is individually liable
only for taxes due on the separate return. [Cases:
Internal Revenue Cc:~'4481; Taxation (;::::'3540.J
tax-return privilege. See PRIVILEGE (3).
tax roll. See ROLL (2). teach
tax sale. See SALE.
tax shelter, n. (1952) A financial operation or investment
strategy (such as a partnership or real-estate invest
ment trust) that is created primarily for the purpose of
reducing or deferring income-tax payments. _ The Tax
Reform Act of 1986 -by restricting the deductibility
of passive losses -sharply limited the effectiveness
of tax shelters. Often shortened to shelter. tax
sheltered, adj.
tax-sheltered annuity. See 403(b) plan under EMPLOYEE
BENEFIT PLAN.
tax situs (SI-t<lS). A state or other jurisdiction that has a
substantial connection with assets that are subject to
taxation. [Cases: Taxation (;::::'2211.]
tax-straddle rule. A rule preventing undue deferral of
tax on income or conversion of ordinary income or
short-term capital gain into long-term capital gain
by disallowing the premature deduction of a loss on
sale or disposition of one leg of a straddle position
while retaining the other, offsetting leg or position. _
For example, in a straddle position a promise to sell
may be offset by a promise to buy, such as in a futures
contract. This practice has been greatly restricted by
the requirement that gains and losses on commodities
transactions must be reported based on their value at
year end. IRC (26 USCA)  165(c)(2). See STRADDLE.
[Cases: Internal Revenue C-'='3397.]
tax table. See TAX-RATE SCHEDULE.
tax title. See TITLE (2).
tax warrant. See WARRANT (1).
tax write-off. (1955)


ITLE (2).
tax warrant. See WARRANT (1).
tax write-off. (1955) A deduction of depreciation, loss, or
expense from taxable income. [Cases: Internal Revenue
(;::::'3310-3442,3470-3505; Taxation <r'-:::)3501-3516.]
tax year. See YEAR.
TBe. abbr. Trial before the court. See bench trial under
TRIAL.
T-biIl. abbr. TREASURY BILL.
T-bond. abbr. TREASURY BOND.
T.e. abbr. See TAX COURT, u.s.
T.C.M. See T.C. MEMO.
T.e. memo. abbr. A memorandum decision of the U.S.
Tax Court. Also abbreviated T.C.M.
TDA. abbr. UNITED STATES TRADE AND DEVELOPMENT
AGENCY.
teach, vb. Patents. 1. (Of a patent specification) to
instruct (a person of ordinary skill in the art how to
make and use an invention). [Cases: Patents 2.
(Of a prior-art reference) to anticipate (the invention
being examined) by discussing, describing, or analyz
ing the invention's essential elements or technology.
 In this sense, prior art that discourages an inventor
from pursuing an invention "teaches away from" that
invention. A teaching raises a statutory bar to an inven
tion's patentability. [Cases: Patents (>::-'65.]

teamwork. (1828) Work done by a team; esp., work by a
team ofanimals as a substantial part ofone's business,
such as farming, express carrying, freight hauling, or
transporting material.  In some jurisdictions, animals
(such as horses) that work in teams are exempt from
execution 011 a civil judgment.
tear-me-open license. See shrink-wrap license under
LICENSE.
TEAS. abbr. TRADEMARK ELECTRONIC APPLICATION
SYSTEM.
TEe. abbr. Tariff exterior commun. See common external
tarijfunder TARIFF (2).
TECA (tee-k<l). abbr. TEMPORARY EMERGENCY COURT
OF APPEALS.
technical adjustment. A brief change in the general
upward or downward trend of stock-market prices,
such as a short rally during a bear market.
Technical Advice Memorandum. (1967) A publica
tion issued by the national office of the IRS, usu. at a
taxpayer's request, to explain some complex or novel
tax-law issue. -Abbr. TAM. [Cases: Internal Revenue
~."J'Y''''. 3051.]
technical conversion. See CONVERSION (2).
technical error. See harmless error under ERROR (2).
technical estoppel. See ESTOPPEL.
technical mark. See technical trademark under TRADE
MARK.
technical mortgage. See MORTGAGE.
technical trademark. See TRADEMARK.
technical trust. See passive trust under TRUST.
Technology Administration. A unit in the U.S.
Department of Commerce responsible for working
with industry on ways to use technology to stimulate
economic growth . The agency also carries out tech
nology programs and disseminates information about
technology. It has three offices: the Office ofTechnol
ogy Policy (OTP), the National Institute of Standards
and Technology (NIST), and the National Technical
Information Service (NTIS). It was established in 1988.
15 USCA  3704.
technology transfer. 1. lhe sale or licenSing ofintellec
tual property. 2. The field involving the sale and licens
ing ofintellectual property . Many major universities
have an office of technology transfer to control the
university's intellectual property and generate income
from it. [Cases: Copyrights and Intellectual Property
107.]
teen court. See COURT.
teind (tcend). Scots law. (usu. pl.) A tithe. teind, vb.
teindable, adj.
Teind Court. Scots law. A court that adjudicates ques
tions relating to teinds, esp. increases in the stipends of
parish ministers . It includes one ofthe judges of the
Court ofSession, sitting as Commissioner ofTeinds.
Also termed Court ofTeinds. telccopier. See FAX (2).
teleological interpretation. See purposive construction
under CONSTRUCTION.
telescam. A fraud committed by using telemarketing to
induce the victim to disclose sensitive personal infor
mation or send money to the perpetrator. Cf. BOILER
ROOM TRANSACTION; PHISHING.
teller. 1. A bank clerk who deals directly with customers
by receiving and paying out money. 2. Parliamentary
law. A member ofa tellers committee; esp., a vote-coun
ter at an election. See tellers committee under COMMIT
TEE. [Cases: Elections C-:;:, 126(3), 209.J
Teller in Parliament. One ofthe members ofthe British
House of Commons -two from government and two
from the opposition appointed by the Speaker to
count votes.
teller's check. See CHECK.
tellers committee. See COMMITTEE.
teller vote. See lobby vote under VOTE (4).
temerarium perjurium super assisam (tem-<l-rair-ee-;:Im
p<lr-juur-ee-;:Im s[y]oo-p;:lr <l-SI-z<=Jm). [Law Latin] Hist.
Rash perjury on an assize. The phrase described a
perverse verdict returned by a jury.
temere jurantes super assisam (tem-<l-ree juur-an
teez s[y]oo-p<lr <l-SI-Z<lm). [Law Latin] Hist. Persons
swearing rashly upon an assize. See TEMERARIUM PER
JURIUM SUPER ASSISAM.
temere litigare (tem-<=J-ree lit-<l-gair-ee), vb. [Latin] Hist.
To litigate rashly.
temperance. 1. Habitual moderation regarding the indul
gence ofthe natural appetites and passions; restrained
or moderate indulgence (esp. ofalcoholic beverages).
2. Abstinence.
temperate damages. See DAMAGES.
tempestive (tem-pes-tiv) adj. Scots law. Ofor relating to
the proper time; timely; timeous.
templar. A barrister who has chambers in the Temple of
the Inns ofCourt. Ihe Middle and Inner Temples are
so named because they are housed in buildings on land
that once belonged to the Knights Templars.
temporality. 1. Civil or political power, as distinguished
from ecclesiastical power. 2. (usu. pl.) The secular prop
erties or revenues of an ecclesiastic.
temporal jurisdiction. See JURISDICTION.
temporal lord. See LORD.
temporary, adj. Lasting for a time only; existing or con
tinuing for a limited (usu. short) time; transitory.
temporary administration. See ADMINISTRATION.
temporary alimony. See ALIMONY.
temporary allegiance. See ALLEGIANCE.
Temporary Assistance to Needy Families. A combined
state and federal program that provides limited finan
cial assistance to families in need. 42 USCA  601
603a. This program replaced Aid to Families with

1603
Dependent Children. TANF differs from AFDC
because families are limited to no more than five years
of assistance, and states have more control over eli
gibility requirements. Abbr. TANF. [Cases: Social
Security and Public Welfare C)194-194.21.}
temporary-cessation-of-production doctrine. Oil &
gas. The rule that an oil-and-gas lease term "for so long
thereafter as oil and gas are produced" will not termi
nate once production is attained unless the cessation of
production is for an unreasonable length of time. See
CESSATION-OP-PRODUCTION CLAUSE. [Cases: Mines and
Minerals <:.>78.1(9).]
temporary committee. See special committee under
COMMITTEE.
temporary damages. See DAMAGES.
temporary detention. See pretrial detention under
DETENTION.
temporary disability. See DISABILITY (2).
Temporary Emergency Court of Appeals. [fist. A
special U.S. court created in 1971 with exclusive
jurisdiction over appeals from federal district courts
in cases arising under the wage-and-price-control
program ofthe Economic Stabilization Act of 1970.
The court consisted of nine district and circuit judges
appointed by the ChiefJustice. This court was abolished
in 1992. -Abbr. TECA. Cf. EMERGENCY COURT OF
APPEALS. [Cases: Federal Courts (;::::0 1140.]
temporary employment. See EMPLOYMENT.
temporary executor. See acting executor under
EXECUTOR.
temporary fiduciary. See FIDUCIARY.
temporary frustration. See FRUSTRATION.
temporary injunction. See preliminary injunction under
INJUNCTION.
temporary injury. See INJURY.
temporary insanity. See INSANITY.
temporary insider. See INSIDER.
temporary judge. See visiting judge under JUDGE.
temporary nuisance. See NUISANCE.
temporary order. See ORDER (2).
temporary perfection. See PERFECTION.
temporary restraining order. (I861) 1. A court order
preserving the status quo until a litigant's applica
tion for a preliminary or permanent injunction can
be heard. _ A temporary restraining order may some
times be granted without notifying the opposing party
in advance. Cf. emergency protective order under PRO
TECTIVE ORDER. [Cases: Injunction (;::::0 150.] 2. See ex
parte injunction under INJUNCTION. -Often shortened
to restraining order. Abbr. TRO.
temporary statute. See STATUTE.
temporary taking. See TAKING (2).
temporary total disability. See DISABILITY (2).
temporary ward. See WARD. tenancy
tempus (tem-pJs), n. [Latin] Hist. Time; a speCified
duration.
tempus continuum (tem-pJs kJn-tin-yoo-Jm), n.
[l.atin] Hist. Time continuing without interruption;
a continuous period.
tempus deliberandi (tem-pJs di-lib-J-ran-dI), n.
[Latin] Rist. The period allowed for deliberation;
esp., the time during which an heir could consider
whether to accept or reject an inheritance. Cf. JUS
DELIBERANDI.
tempus lugendi (tem-pJs loo-gen-Dl). n. See LUCTUS.
tempus semestre (tem-pJs si-mes-trJ), n. [Latin] A
period of 182 days (halfa year).
tempus utile (tem-p"'s yoo-t",-lee), n. [l.atin "useful
time"] Hist. Time that one can use to exercise his or
her legal rights; the period within which an action
or proceeding must be brought. -This is the period
before prescription or limitation cuts off a right.
tenancy. (16c) 1. The possession or occupancy ofland
under a lease; a leasehold interest in real estate. 2. The
period of such possession or occupancy. See ESTATE (1).
[Cases: Landlord and Tenant (;::::020.]3. The possession
ofreal or personal property by right or title, esp. under
a conveying instrument such as a deed or will.
at-will tenancy. See tenancy at will.
common tenancy. See tenancy in common.
cotenancy. (1875) A tenancy with two or more
coowners who have unity of possession. -Examples
are a joint tenancy and tenancy in common. [Cases:
Joint Tenancy (;::::0 1; Tenancy in Common (;::::0 1.]
entire tenancy. (l7c) A tenancy possessed by one
person, as opposed to a joint or common tenancy.
See estate by entirety under ESTATE (1).
general tenancy. (18c) A tenancy that is not of fixed
duration under the parties' agreement. [Cases:
Landlord and Tenant (;::::0 114.]
holdover tenancy. See tenancy at sufferance.
joint tenancy. (I7c) A tenancy with two or more
coowners who take identical interests simultaneously
by the same instrument and with the same right of
possession. _ A joint tenancy differs from a tenancy in
common because each joint tenant has a right ofsur
vivorship to the other's share (in some states, this right
must be clearly expressed in the conveyance -other
wise, the tenancy will be presumed to be a tenancy in
common). See RIGHT OF SURVIVORSHIP. Cf. tenancy
in common. [Cases: Joint Tenancy 6.}
"The rules for creation of a joint tenancy are these: The
joint tenants must get their interests at the same time.
They must become entitled to possession at the same time.
The interests must be physically undivided interests, and
each undivided interest must be an equal fraction of the
whole -e.g., a one-third undiVided interest to each of
three jOint tenants. The joint tenants must get their inter
ests by the same instrument -e.g., the same deed or will.
The joint tenants must get the same kinds of estates
e.g., in fee simple, for life, and so on." Thomas F. Bergin
& Paul G. Haskell, Preface to Estates in Land and Future
Interests 55 (2d ed. 1984).

1604 tenancy
life tenancy. See life estate under ESTATE (1).
periodic tenancy. (1891) A tenancy that automatically
continues for successive periods -usu. month to
month or year to year unless terminated at the end


tenancy that automatically
continues for successive periods -usu. month to
month or year to year unless terminated at the end
ofa period by notice. _ A typical example is a month
to-month apartment lease. This type oftenancy orig
inated through court rulings that, when the lessor
received a periodic rent, the lease could not be ter
minated without reasonable notice. Also termed
tenancy from period to period; periodic estate; estate
from period to period; (more specit:) month-to-month
tenancy (or estate); year-to-year tenancy (or estate).
[Cases: Landlord and Tenant C= 114, llS.]
several tenancy. (17c) A tenancy that is separate and
not held jointly with another person.
tenancy at sufferance. (18c) A tenancy arising when a
person who has been in lawful possession ofproperty
wrongfully remains as a holdover after his or her
interest has expired. -A tenancy at sufferance takes
the form of either a tenancy at will or a periodic
tenancy. Also termed holdover tenancy; estate at
sufferance. See HOLDING OVER (1). [Cases: Landlord
and Tenant C=c 117, 119.}
"A tenancy at sufferance arises where a tenant, having
entered upon land under a valid tenancy, holds over
without the landlord's assent or dissent. Such a tenant
differs from a trespasser in that his original entry was
lawful, and from a tenant at will in that his tenancy exists
without the landlord's assent. No rent, as such, is payable,
but the tenant is liable to pay compensation for his use and
occupation of the land. The tenancy may be determined
[Le., terminated] at any time, and may be converted into
a yearly or other periodic tenancy in the usual way, e.g.,
if rent is paid and accepted with reference to a year in
circumstances where the parties intended there to be a
tenancy." Robert E. Megarry & M.P. Thompson, A Manual
of the Law of Real Property 319 (6th ed. 1993).
tenancy attendant on the inheritance. A tenancy
for a term that is vested in a trustee in trust for the
owner of the inheritance. _ The tenancy is a form
of personal property to the trustee. Also termed
tenancy attendant on an inheritance; term attendant
on the inheritance.
tenancy at will. (I7c) A tenancy in which the tenant
holds possession with the landlord's consent but
without fixed terms (as for duration or rent); specif.,
a tenancy that is terminable at the will of either the
transferor or the transferee and that has no desig
nated period of duration. _ Such a tenancy may be
terminated by either party upon fair notice. Also
termed at-will tenancy; estate at will. Landlord
and TenantC"='117, 118, 120.}
tenancy by the entirety (en-tI-<lr-tee). See estate by
entirety under ESTATE (1). [Cases: Husband and Wife
(;;-:;:, 14.2-14.11.]
"Tenancy by the entireties is a form of joint tenancy. It
resembles joint tenancy in that upon the death of either
husband or wife the survivor automatically acquires title
to the share of the deceased spouse. Like ajoint tenancy,
also, it is necessary for the creation of a tenancy by the
entireties that the husband and wife acquire title by the same deed or Will." Robert Kratovil, Real Estate Law 198
(6th ed. 1974).
"Where [tenancy by the entirety] is recognized, it may exist
only between a husband and a wife. It resembles, in most
respects, the joint tenancy. The only major difference is
that a tenant by the entirety may not destroy the other
spouse's right of survivorship by transferring his or her
interest to another. Whether a tenant by the entirety may
transfer any interest to a third party -for example, the
right of present possession or the contingent right of survi
vorship -is a matter on which the states differ. Most take
the view that no interest may be transferred. The husband
and wife may, of course, together convey their estate to
a third person. If they both wish to convert their tenancy
into a tenancy in common or ajoint tenancy, they may do
so. Upon the death of a tenant by the entirety, no interest
passes, in theory, to the surviving spouse. As was true
of the joint tenancy, the survivor's ownership is thought
simply to expand to absorb the relinquished ownership of
the decedent." Thomas F. Bergin & Paul G. Haskell, Preface
to Estates in Land and Future Interests 55 (2d ed. 1984).
"A tenancy by the entireties could exist in any estate,
whether in fee, for life, for years or otherwise. The nature
of the tenancy was virtually that of an unseverable joint
tenancy; neither husband nor wife could dispose of any
interest in the land without the concurrence of the other,
nor could one of them cause a forfeiture of the land. The
unity of husband and wife was regarded as so complete
that they were said to be seised 'per tout et non per mie,'
the survivor being entitled to the whole of the land by force
of the original limitation, discharged of the other's right
to participate, and not, as in the case of joint tenancy, by
virtue of survivorship on the death of the other tenant.
Unlike joint tenants, neither tenant was regarded as having
any potential share in the land; 'between husband and wife
there are no moieties.'" Robert E. Megarry & P.V. Baker, A
Manual of the Law of Real Property 232-33 (4th ed. 1969)
(quoting Marquis of Winchester's Case, 3 Co. Rep. 1a, Sa
(l583).
tenancy by the rod. See COPYHOLD.
tenancy by the verge. See COPYHOLD.
tenancyfor a term. 07c) A tenancy whose duration
is known in years, weeks, or days from the moment
of its creation. -Also termed tenancy for a period;
tenancy for years; term for years; term ofyears; estate
for a term; estate for years; lease for years. [Cases:
Landlord and Tenant C=c70, 72,113-115.]
tenancyfrom period to period. See periodic tenancy.
tenancy in common. (17c) A tenancy by two or more
persons, in equal or unequal undivided shares, each
person having an equal right to possess the whole
property but no right of survivorship. Also termed
common tenancy; estate in common. Cf. joint tenancy.
[Cases: Tenancy in Common C=c 1.]
"The central characteristic of a tenancy in common is
simply that each tenant is deemed to own by himself, with
most of the attributes of independent ownership, a phYSi
cally undivided part of the entire parcel." Thomas F. Bergin
& Paul G. Haskell, Preface to Estates in Land and Future
Interests 54 (2d ed. 1984).
tenancy in coparcenary. See COPARCENARY.
tenancy in fee. See FEE SIMPLE.
tenancy in gross. (1860) A tenancy for a term that is
outstanding -that is, one that is unattached to or
disconnected from the estate or inheritance, such as

1605
one that is in the hands of some third party having
no interest in the inheritance.
tenancy in tail. See FEE TAIL.
tenancy par la verge. See COPYHOLD.
year-to-year tenancy. See periodic tenancy.
tenant, n. (I4c) 1. One who holds or possesses lands or
tenements by any kind of right or title. See TENANCY. i
[Cases: Landlord and Tenant C;=: 1.]
copyhold tenant. See customary tenant.
customary tenant. A tenant holding by the custom of
the manor . Over time, customary tenants became
known as copyhold tenants. See COPYHOLD.
"The lord has a court; in that court the tenant in villein
age, even though he be personally unfree, appears as no
mere tenant at will, but as holding permanently, often heri
tably, on fairly definite terms. He is a customary tenant.
customarius, consuetudinarius; he holds according to the
custom of the manor. ... Then gradually ... [d]ealings with
villein tenements are set forth upon the rolls of the lord's
court; the villein tenement is conceived to be holden 'by
roll of court: or even 'by copy of court roll,' and the mode
of conveyance serves to mark off the most beneficial of
villeinholds from the most onerous of freeholds .... In
Henry Ill's time this process which secured for the tenant
in villeinage a written, a registered title, and gave him the
name of 'copyholder,' was but beginning ...." 2 Frederick
Pollock & Frederic W. Maitland, The History of English Law
Before the Time of Edward 1361,375 (2d ed. 1899).
dominant tenant. The person who holds a dominant
estate and therefore benefits from an easement. Cf.
servient tenant. [Cases: Easements
holdover tenant. A person who remains in possession
of real property after a previous tenancy (esp. one
under a lease) expires, thus giving rise to a tenancy
at sufferance. -Sometimes shortened to holdover.
See tenancy at sufferance under TENANCY. [Cases:
Landlord and Tenant C;=:, 119(2).]
hypothetical tenant. See HYPOTHETICAL TENANT.
illusory tenant. 1. A fictitious person who, as the land
lord's alter ego, subleases an apartment to permit
the landlord to circumvent rent-law regulations.
2. A tenant whose business is to sublease rent-con
trolled apartments. [Cases: Landlord and Tenant
200.16.]
joint tenant. See joint tenancy under TENANCY.
life tenant. See LIFE TENANT.
particular tenant. A tenant of a limited estate taken out
of a fee. See particular estate under ESTATE (1).
prime tenant. A commercial or professional tenant
with an established reputation that leases substan
tial, and usu. the most preferred. space in a commer
cial development.  A prime tenant is important in
securing construction financing and in attracting
other desirable tenants.
quasi-tenant. A sublessee that the new tenant or rever
sioner allows to hold over. tenant
servient tenant. The person who holds a servient
estate and is therefore burdened by an easement. Cf.
dominant tenant. [Cases: Easements <:;-~2.1
statutory tenant. A person who is legally entitled to
remain on property after the tenancy expires. [Cases:
Landlord and Tenant <:;-~200.20. 278.4(S).]
tenant at sufferance. A tenant who has been in lawful
possession of property and wrongfully remains as a
holdover after the tenant's interest has expired . The
tenant may become either a tenant at will or a periodic
tenant. -Also termed permissive tenant. See tenancy
at will; periodic tenancy. [Cases: Landlord and Tenant
C-:Y117,119.]
tenant by elegit. See ELEGIT.
tenant by the curtesy. A life tenant who receives the
estate from his deceased wife by whom he has had
legitimate children . The children hold the remain
der interest. See cu RTESY. [Cases: Descent and Distri
bution C;=:S2-67; Dower and Curtesy C;=:S, 11. 113,
114; Wills C;=:496, 778-803.]
tenant by the verge. See COPYHOLDER.
tenant for a term. A tenant whose tenancy is for a
defined number ofyears, months, weeks, or days, set
when the tenancy is created.
tenant for life. See LIFE TENANT.
tenant in chief. Hist. A person who held land directly
of the king. -Also termed tenant in capite. See IN
CAPITE.
tenant in common. One of two or more tenants who
hold the same land by unity of possession but by
separate and distinct titles, with each person having
an equal right to possess the whole property but no
right of survivorship. See tenancy in common under
TENANCY. [Cases: Tenancy in Common 1.]
tenant in demesne (di-mayn or di-meen). A feudal
tenant who holds land of, and owes services to, a
tenant in service. Cf. tenant in service.
tenant in dower. A life tenant who is entitled to hold
and use one-third of all the real property owned by
her deceased husband. See DOWER. [Cases: Dower and
Curtesy C::> 113,114.]
tenant in fee. The owner of land held in fee. -Also
termed tenant infee simple. [Cases: Estates in Property
"A tenant in fee simple is [one who owns] lands, tenements,
or hereditaments, to hold to him and his heirs forever;
generally, absolutely, and Simply, without mentioning
what heirs, but referring that to his own pleasure, Of to
the disposition of the law. An estate in fee simple is an
estate of inheritance without condition, belonging to the
owner, and alienable by him or transmissible to his heirs
absolutely and simply; it is an estate or interest in land of
one holding absolute and exclUSive control and dominion
over it, no matter how acquired." 31 c.j.S. Estates  11, at
27 (1996).
tenant in service. A feudal tenant who grants an
estate to another (a tenant in demesne) and is there

1606 tenancy by the curtesy
fore entitled to services from the latter. Cf. tenant in
demesne.
undertenant. See SUBLESSEE.
2. One who pays rent for the temporary use and occupa
tion ofanother's land under a lease or similar arrange
ment. See LESSEE. 3. Archaic. The defendant in a real
action (the plaintiff being called a demandant). See real
action under ACTION (4).


defendant in a real
action (the plaintiff being called a demandant). See real
action under ACTION (4).
tenancy by the curtesy. See CURTESY.
tenantable repair. (l7c) A repair that will render premises
fit for present habitation. See HABITABILITY. [Cases:
Landlord and Tenant C::=> 150(1), 152(3), 160(2).]
tenantlike, adj. In accordance with the rights and obliga
tions ofa tenant, as in matters of repairs, waste, etc.
tenant paravail. Archaic. A tenant's tenant; a sublessor.
tenant par la verge. See COPYHOLDER.
tenant-right. English law. A tenant's right, upon ter
mination of the tenancy, to payment for unexhausted
improvements made on the holding. This right is
governed by the Agricultural Holdings Act of 1986.
tenantry. A body or group of tenants.
tenant's fixture. See FIXTURE.
tend, vb. 1. To be disposed toward (something). 2. To
serve, contribute, or conduce in some degree or way;
to have a more or less direct bearing or effect. 3. To
be directed or have a tendency to (an end, object, or
purpose).
ten-day rule. The doctrine that one who sells goods on
credit and then learns that the buyer is insolvent has
ten days after the buyer receives the goods to demand
their return. The seller has even longer to demand
return if the buyer has made a written representation
of solvency to the seller within three months before
delivery. [Cases: Sales C::=>316(1).]
tender, n. (l6c) 1. A valid and sufficient offer of perfor
mance; specif., an unconditional offer ofmoney or per
formance to satisfy a debt or obligation <a tender of
delivery>. The tender may save the tendering party
from a penalty for nonpayment or nonperformance or
may, ifthe other party unjustifiably refuses the tender,
place the other party in default. Cf. OFFER OF PERFOR
MANCE; CONSIGNATION. [Cases: Contracts C::=>279; Sales
C::=> 153, 185; Vendor and Purchaser C::=> 148, 170.]
tender ofdelivery. (1821) A seller's putting and holding
conforming goods at the buyer's disposition and
giving the buyer any notification reasonably neces
sary to take delivery . The manner, time, and place
for tender are determined by the agreement and by
Article 2 of the Uniform Commercial Code. [Cases:
Sales C::=> 153.]
tender ofperformance. (l8c) An obligor's demonstra
tion of readiness, willingness, and ability to perform
the obligation; esp., a buyer's demonstration of read
iness, willingness, and ability to pay the purchase
money, or a seller's offer to deliver merchantable
title. An offer to perform is usu. necessary to hold the defaulting party to a contract liable for breach.
[Cases: Contracts C::=>279.]
2. Something unconditionally offered to satisfy a debt
or obligation. [Cases: Tender C::=> 1, 10.] 3. Contracts.
Attempted performance that is frustrated by the act of
the party for whose benefit it is to take place . The per
formance may take the form ofeither a tender ofgoods
or services, or a tender ofpayment. Although this sense
is quite similar to sense 1, it differs in making the other
party's refusal part of the definition itself.
perfect tender. (l8c) A seller's tender that meets the
contractual terms entered into with the buyer con
cerning the quality and specifications of the goods
sold. See PERFECT-TENDER RULE. [Cases: Sales C::=>
153, 177.]
4. An offer or bid put forward for acceptance <a tender
for the construction contract>. [Cases: Public Contracts
C::=>8.] 5. Something that serves as a means ofpayment,
such as coin, banknotes, or other circulating medium;
money <legal tender>. [Cases: Payment C::=> 10; United
States C::=>34.] -tender, vb.
tender, plea of. See PLEA OF TENDER.
tender offer. A public offer to buy a minimum number
ofshares directly from a corporation's shareholders at
a fixed price, usu. at a substantial premium over the
market price, in an effort to take control of the corpo
ration. -Also termed takeover offer; takeover bid. Cf.
public-exchange offer under OFFER. [Cases: Securities
Regulation C::=>52.30-52.50.]
"Broadly speaking, a direct solicitation of a corporation's
stockholders to sell their shares to an acquirer is known as
a tender offer (because the acquirer is asking the existing
stockholders to tender their shares for sale)." Franklin A.
Gevurtz, Corporation Law  7.3, at 673 (2000).
cash tender offer. A tender offer in which the bidder
offers to pay cash for the target's shares, as opposed to
offering other corporate shares in exchange. Most
tender offers involve cash. [Cases: Securities Regula
tion C::=>52.30-52.50.]
creeping tender offer. See creeping acquisition under
ACQUISITION.
tender of issue. (1811) Common-law pleading. A form
attached to a traverse, by which the traversing party
refers the issue to the proper mode of trial. [Cases:
Pleading C::=> 100, 112.]
"[Ilt is the object of all pleadings to bring the parties, in
the course of their mutual altercations, to an issue that is
a single entire point, affirmed on the one side and denied
on the other; and it is to effect this object that the above
rule was established. There can be no arrival at this point
until one or the other of the parties, by the conclusion
of his pleading, offers an issue for the acceptance of his
opponent, and this offer is called the 'tender of issue.'''
Benjamin j. Shipman, Handbook ofCommon-Law Pleading
 254, at 446 (Henry Winthrop Ballantine ed., 3d ed.
1923).
tender-years doctrine. (1954) Family law. The doctrine
holding that custody of very young children (usu. five
years ofage and younger) should generally be awarded
to the mother in a divorce unless she is found to be

1607
unfit.  This doctrine has been rejected in most states
and replaced by a presumption ofjoint custody. See
MATERNAL-PREFERENCE DOCTRINE; PRIMARY-CARE
GIVER DOCTRINE. [Cases: Child Custody C=::o457.]
tender-years hearsay exception. See HEARSAY EXCEP
TION.
tenement. (14c) 1. Property (esp.land) held by freehold;
an estate or holding ofland.
dominant tenement. See dominant estate under ESTATE
(4).
servient tenement (silr-vee-;mt). See servient estate
under ESTATE (4).
2. A house or other building used as a residence. 3. An
apartment. 4. TENEMENT HOUSE.
tenement house. (1858) A low-rent apartment building,
usu. in poor condition and at best meeting only
minimal safety and sanitary conditions. -Sometimes
shortened to tenement.
tenendas (ta-nen-das), n. [Law Latin "to be held"] Hist.
The charter clause stating the nature of the tenure, so
called because ofthe fi rst word ofthe clause.
tenendum (ti}-nen-di}m). [Latin "to be held"] (17c)
A clause in a deed designating the kind of tenure
by which the things granted are to be held. -Also
termed tenendum clause; (in Scots law) tenendas. See
HABENDUM ET TENENDUM. Cf. HABENDUM CLAUSE
(1).
lO-K. A financial report filed annually with the SEC by a
registered corporation . The report typically includes
an audited financial statement, a description ofthe cor
poration's business and financial condition, and sum
maries of other financial data. -Also termed Form
1O-K. Cf. 8-K; lO-Q. (Cases: Securities Regulation
60.27(6).]
Tennessee Valley Authority. A government-owned
corporation, created in 1933, that conducts a unified
program ofresource development to advance economic
growth in the Tennessee Valley region . The Author
ity's activities include flood control, navigation
development, electric-power production, fertilizer
development, recreation improvement, and forestry
and-wildlife development. Though its power program
is financially self-supporting, the Authority's other
programs are financed primarily by congressional
appropriations. -Abbr. TVA. [Cases: United States
(;::~ 53(6.1).]
tenor, n. 1. An exact copy ofan instrument. 2. The exact
words ofa legal document, esp. as cited in a pleading.
3. The meaning ofa legal document.
ten-percent bond. See BOND (2).
IO-Q. An unaudited financial report filed quarterly with
the SEC by a registered corporation . The IO-Q is less
detailed than the lO-K. -Also termed Form 1O-Q. Cf.
lO-K.[Cases: Securities Regulation C=::o60.27(6).]
tentative agenda. See proposed agenda under AGENDA.
tentative trust. See Totten trust under TRUST. tenure
Tenth Amendment. The constitutional amendment,
ratified as part ofthe Bill ofRights in 1791, providing
that any powers not constitutionally delegated to the
federal government, nor prohibited to the states, are
reserved for the states or the people. -Also termed
Reserved Power Clause. [Cases: States C-'-:c4.16.j
1031 exchange (ten-thi}r-tee-wiln). (1972) 1. An exchange
oflike-kind property that is exempt from income-tax
consequences under IRC (26 USCA)  1031. [Cases:
Internal Revenue (;::~")3184.] Cf. TAX-FREE EXCHANGE.
2. See TAX-FREE EXCHANGE.
! tenure (ten-yar), n. (l5c) 1. A right, term, or mode of
holding lands or tenements in subordination to a
superior. In feudal times, real property was held pre
dominantly as part ofa tenure system. 2. A particular
feudal mode ofholding lands, such as socage, gavel
kind, villeinage, and frankalmoign.
"Most of the feudal incidents and consequences of socage
tenure were expressly abolished in New York by the act of
1787; and they were [later] wholly and entirely annihilated
by the New York Revised Statutes .... They were also
abolished by statute in Connecticut, 1793; and they have
never existed, or they have ceased to exist, in all essential
respects, in every other state. The only feudal fictions and
services to be retained in any part of the United States
consist of the feudal principle, that the lands are held of
some superior or lord, to whom the obligation of fealty,
and to pay a determinate rent, are due .... The lord para
mount of all socage land was none other than the people
of the state, and to them, and them only, the duty of fealty
was to be rendered ...." 3 James Kent, Commentaries on
American Law *509-1 0 (George Comstock ed., 11th ed.
1866).
base tenure. Hist. The holding of property in villein
age rather than by military service or free service.
See VILLEINAGE.
copyhold tenure. See COPYHOLD.
lay tenure. Hist. Any tenure not held through religiOUS
service, such as a base tenure or a freehold tenure .
The three historical types oflay tenures are knight
service, socage, and serjeanty. See KNIGHT-SERVICE;
SOCAGE; SERJEANTY. Cf. tenure by divine service.
military tenure, A tenure that bears some relation
to military service, such as knight-service, grand
serjeanty, and cornage. -Also termed tenure in
chivalry.
spiritual tenure. A tenure that bears some relation to
religiOUS exercises, such as frankalmoign and tenure
by divine service.
tenure ad furcam et flagellum (ad f~r-kJm et flJ
jel-i'lm). [Latin] Hist. Tenure by gallows and whip.
This was the meanest of the servile tenures -the
bondman was at the disposal ofthe lord for life and
limb.
tenure by divine service. Hist. A tenure obligating the
tenant to perform an expressly defined divine service,
such as singing a certain number of masses or distrib
uting a fixed sum ofalms. Cf. lay tenure.
tenure in chivalry. See military tenure.
villein tenure. See VILLEINAGE.

1608 tenured faculty
3. A status afforded to a teacher or professor as a pro
tection against summary dismissal without sufficient
cause . This status has long been considered a cor
nerstone of academic freedom. [Cases: Colleges and
Universities ~8.1(2); Schools ~133.6.) 4. More
generally, the legal protection of a long-term relation
ship, such as employment. [Cases: Officers and Public
Employees ~60.) -tenurial (ten-yuur-ee-Jl), adj.
tenured faculty. The members ofa school's teaching staff
who hold their positions for life or until retirement, and
who may not be discharged except for cause. [Cases:
Colleges and Universities ~8.1(2).)
tenure in capite. See IN CAPITE.
tenure in chivalry. See military tenure under TENURE.
tepid bench. See lukewarm bench under BENCH.
teratogen (tJ-rat-J-jJn), n. An agent, usu. a chemical,
that causes injury to a fetus


(tJ-rat-J-jJn), n. An agent, usu. a chemical,
that causes injury to a fetus or causes any of various
birth defects <alcohol is a teratogen to the developing
brain ofa fetus>. -teratogenic (tJ-rat-J-jen-ik), adj.
terce. Hist. Scots law. A widow's interest in one-third
of her husband's real property, if she has not accepted
some other special provision . The couple must have
been married at least a year and a day or else have
produced a living child together. See DOWER.
terce land. Hist. Scots law. Income-producing real
property in which a widow has a pecuniary interest
because it was owned by her husband.
tercer. Hist. Scots law. A widow who has an interest
in one-third of her husband's real property. -Also
spelled tiercear.
tergiversatio (tJr-jiv-Jr-say-shee-oh), n. [Latin "being
reluctant, hanging back") Roman law. A delay tactic,
esp. an accuser's failure to pursue a criminal charge,
perhaps by not appearing at the trial.  To withdraw
an accusation, it was necessary to obtain the court's
permission for an annulment (abolitio). In A.D. 61, a law
was passed by which anyone convicted of tergiversatio
was subject to a fine. See CALUMNIA. Cf. PRAEVARICA
TIO. PI. tergiversationes (tJr-jiv-Jr-say-shee-oh-neez).
term, n. (14c) 1. A word or phrase; esp., an expression
that has a fixed meaning in some field <term ofart>. 2.
A contractual stipulation <the delivery term provided
for shipment within 30 days>. See CONDITION (3).
essential term. Seefundamental term.
fundamental term. (1873) 1. A contractual provi
sion that must be included for a contract to exist;
a contractual provision that specifies an essential
purpose of the contract, so that a breach of the pro
vision through inadequate performance makes the
performance not only defective but essentially dif
ferent from what had been promised. [Cases: Con
tracts ~9(1), 15.) 2. A contractual provision that
must be included in the contract to satisfy the statute
of frauds. -Also termed essential term; vital term.
[Cases: Frauds, Statute of~ 113.)
implied term. (I8c) A provision not expressly agreed
to by the parties but instead read into the contract by a court as being implicit.  An implied term should
not, in theory, contradict the contract's express terms.
[Cases: Contracts ~168.)
material term. (1839) A contractual provision dealing
with a Significant issue such as subject matter, price,
payment, quantity, quality, duration, or the work to
be done. [Cases: Contracts ~9.)
nonessential term. See nonfundamental term.
nonfundamental term. (1969) Any contractual provi
sion that is not regarded as a fundamental term.
Also termed nonessential term; nonvital term. [Cases:
Contracts ~9(1), 15.]
vital term. See fundamental term.
3. (pl.) Provisions that define an agreement's scope;
conditions or stipulations <terms of sale>. 4. A fixed
period of time; esp., the period for which an estate is
granted <term ofyears>.
attendant term. (1983) A long period (such as 1,000
years) specified as the duration ofa mortgage, created
to protect the mortgagor's heirs' interest in the land by
not taking back title to the land once it is paid for, but
rather by assigning title to a trustee who holds the title
in trust for the mortgagor and the mortgagor's heirs.
 This arrangement gives the heirs another title to
the property in case the interest they inherited proves
somehow defective. These types of terms have been
largely abolished. See tenancy attendant on the inheri
tance under TENANCY. [Cases: Mortgages ~54.)
"The advantage derived from attendant terms is the
security which they afford to purchasers and mortgagees.
If the bona fide purchaser or mortgagee should happen
to take a defective conveyance or mortgage, by which
he acquires a mere equitable title, he may, by taking an
assignment of an outstanding term to a trustee for himself,
cure the defect, so far as to entitle himself to the legal
estate during the term, in preference to any creditor, of
whose incumbrance he had not notice, at or before the time
of completing his contract for the purchase or mortgage.
He may use this term to protect his possessions, or to
recover it when lost. This protection extends generally
as against all estates and incumbrances created interme
diately between the raising of the term and the time of
the purchase or mortgage; and the outstanding term, so
aSSigned to a trustee for the purchaser or mortgagee, will
prevail over the intermediate legal title to the inheritance."
4 James Kent, Commentaries on American Law *87 (George
Comstock ed., 11 th ed. 1866).
satisfied term. (18c) A term of years in land that has
satisfied the purpose for which it was created before
the term's expiration.
term for deliberating. (1843) The time given a benefi
ciary to decide whether to accept or reject an inheri
tance or other succession.
term in gross. (1852) A term that is unattached to an
estate or inheritance. See tenancy in gross under
TENANCY.
term ofyears. 1. A fixed period covering a precise
number of years. -Also termed tenancy for a term.
2. English law. A fixed period covering less than a
year, or a specified number ofyears and a fraction of
a year.  This sense applies under a seminal English

1609
statute the Law of Property Act of 1925. [Cases:
Landlord and Tenant (::::'70.]
"In effect, 'term of years' seems to mean a term for any
period having a fixed and certain duration as a minimum.
Thus, in addition to a tenancy for a specified number of
years (e.g., 'to X for ninety-nine years'), such tenancies as
a yearly tenancy or a weekly tenancy are 'terms of years'
within the definition, for there is a minimum duration of
a year or a week respectively. But a lease 'for the life of
X' cannot exist as a legal estate, and the same, perhaps,
applies to tenancies at will or at sufferance (if they are
estates at all) for their duration is wholly uncertain." Robert
E. Megarry & M.P. Thompson, A Manual ofthe Law ofReal
Property 74 (6th ed. 1993).
unexpired term. The remainder ofa period prescribed
by law or by agreement.
5. The period or session during which a court conducts
judicial business <the most recent term was busy
indeed>. Also termed (in sense 5) term ofcourt. See
SESSION, [Cases: Courts (::::::63.]
additional term. A distinct, added term to a previous
term. [Cases: Courts (:::::'64.]
adjourned term. (l8c) A continuance of a previous or
regular term but not a separate term; the same term
prolonged. [Cases: Courts (:::::'66,]
appearance term. The regular judicial term in which
a party is required to appear, usu. the first one after
legal service has been made. [Cases: Courts (:::::"63.J
civil term. 1he period during which a civil court hears
cases.
criminal term. A term of court during which indict
ments are found and returned, and criminal trials are
held. [Cases: Courts (:::::'63.]
equity term. (1836) The period during which a court
tries only equity cases.
general term. A regular term of court -that is, the
period during which a court ordinarily sits. Also
termed stated term. [Cases: Courts <)::063.]
regular term. (1820) A term ofcourt begun at the time
appointed by law and continued, in the court's discre
tion, until the court lawfully adjourns. [Cases: Courts
C""::::'63.]
special term, (1803) A term ofcourt scheduled outside
the general term, usu. for conducting extraordinary
business. [Cases: Courts (:::::'64.]
stated term. See general term.
term probatory. Eccles. law. 1. The period given to the
promoter of an ecclesiastical suit to produce wit
nesses and prove the case. 2. Hist. The time assigned
for taking testimony. -Sometimes termed (in sense
2) probatory term.
term to conclude. Eccles. law. A deadline imposed
by the judge for all parties to renounce any further
exhibits and allegations.
term to propound all things. Eccles. law, A deadline
imposed by the judge for the parties to exhibit all
evidence supporting their positions. termination-for-convenience clause
6. Hist. English law. One ofthe four periods in a year
during which the courts are in session to conduct
judicial business . Terms came into use in the 13th
century, and their dates varied. The four terms -
Hilary, Easter, Trinity, and Michaelmas were abol
ished by the Tudicature Acts of 1873-1875, and the legal
year was divided into sittings and vacations. Terms
are still maintained by the Inns ofCourt to determine
various time periods and dates, such as a call to the bar
or observance ofa Grand Day.
term annuity. See annuity certain under ANNUITY.
term attendant on the inheritance. See tenancy atten
dant on the inheritance under TENANCY.
term bond. See BOND (3).
term clause. See HABENDUM CLAUSE.
term day. See quarter day under DAY.
term deposit. See time deposit under DEPOSIT.
term fee. English law. A sum that a solicitor may charge
a client, and that the client (if successful) may recover
from the losing party, payable for each term in which
any proceedings follOWing the summons take place.
term for deliberating. See TERM (4).
term for years. See tenancy for a term under TENANCY.
terminable interest. See INTEREST (2).
terminable property. See PROPERTY.
terminal disclaimer. See DISCLAIMER.
terminate, vb. 1. To put an end to; to bring to an end. 2.
To end; to conclude.
termination, n. (l5c) 1. The act of ending something;
EXTINGUISHMENT <termination of the partnership by
winding up its affairs>.
termination ofconditional contract. The act ofputting
an end to all unperformed portions of a conditional
contract. [Cases: Contracts (:::::'249.]
termination ofemployment. The complete severance
ofan employer-employee relationship. [Cases: Labor
and Employment C:~40(2), 825.]
2. The end ofsomething in time or existence; conclusion
or discontinuance <the insurance policy's termination
left the doctor without liability coverage>. -termi
nate, vb. terminable, adj.
termination clause. See CANCELLATION CLAUSE.
termination fee. A fee paid if a party voluntarily backs
out of a deal to sell or purchase a business or a busi
ness's assets . Termination fees are usu. negotiated and
agreed on as part of corporate merger or acqUisition
negotiations. The fee is deSigned to protect the pro
spective buyer and to deter the target corporation from
entertaining bids from other parties. -Also termed
break-up fee. [Cases: Corporations (:::::'310(1),582,]
termination-for-convenience clause. A contractual
provision allowing the government to terminate all
or a portion of a contract when it chooses . Among
the governmental contracts that often include a

1610 termination hearing
termination-for-convenience clause are service con
tracts, research-and-development contracts, and
fixed-price contracts. See 48 CFR  52.249-1--52.249
2. [Cases: United States C=>70(35).]
termination hearing. See termination-ofparental-rights
hearing under HEARING.
termination of parental rights. (1939) Family law.
The legal severing of a parent's rights, privileges, and
responsibilities regarding his or her child . Termina
tion ofa parent's rights frees the child to be adopted by
someone else. -Abbr. TPR. See termination-of-paren
tal-rights hearing under HEARING; PARENTAL RIGHTS.
[Cases: Infants C=> 155.]
termination-of-parental-rights hearing. See
HEARING.
termination proceeding. (1939) An administrative
action to end a person's or entity's status or relationship.
 For example, the International Banking Act autho
rizes the International Banking Board to institute a ter
mination proceeding when a foreign bank or its U.S.
agency or branch is convicted of money-laundering.
12 USCA  3105(e).
terminer. See OYER AND TERMINER.
term in gross. See TERM (4).
termini habiles (t;lr-mi-nI hab-;)-leez), n. [Law Latin]
Hist. Sufficient grounds . The phrase usu. referred to
the facts necessary to establish a prescriptive right.
termini sanctorum (t;lr-mi-nI sangk-tor-;)m), n. [Law
Latin] Hist. The limits of a sanctuary. See SANCTUARY
(1).
term interest. Oil & gas. A mineral interest or royalty
interest that is not perpetual.  A term interest may be
for a fixed term (e.g., for 25 years) or defeasible (e.g.,
for 25 years and so long thereafter as there is produc
tion from the premises). [Cases: Mines and Minerals
C=>55.]
terminus ad quem (t;lr-mi-n;)s ad kwem). [Law Latin]
Hist. The point to which . The phrase appeared in ref
erence to the point before which some action must be
taken.


Hist. The point to which . The phrase appeared in ref
erence to the point before which some action must be
taken.
terminus a quo (t;lr-mi-n<:ls ay kwoh). [Law Latin] Hist.
The point from which . The phrase appeared in refer
ence to the point from which something is calculated,
or the earliest time at which some action is possible.
term life insurance. See LIFE INSURANCE.
term loan. See LOAN.
term ofart. (17c) 1. A word or phrase having a specific,
precise meaning in a given specialty, apart from its
general meaning in ordinary contexts. Examples in
law include and his heirs and res ipsa loquitur. [Cases:
Contracts C=>152; Statutes C=>192.] 2. Loosely, a jargo
nistic word or phrase. -Also termed word ofart.
term-of-art canon. (1994) In statutory construction,
the principle that ifa term has acquired a technical or
specialized meaning in a particular context, the term should be presumed to have that meaning if used in
that context. [Cases: Statutes C=> 192.]
term of court. See TERM (5).
term ofoffice. The period during which an elected officer
or appointee may hold office, perform its functions, and
enjoy its privileges and emoluments. [Cases: Officers
and Public Employees C=>50-54.]
term ofyears. 1. See TERM (4). 2. See tenancy for a term
under TENANCY.
termor (t;lr-m<:lr). (14c) A person who holds lands or ten
ements for a term ofyears or for life.
term policy. See INSURANCE POLICY.
term probatory. See TERM (5).
terms. See YEAR BOOKS.
term sheet. Securities. 1. A document setting forth all
information that is material to investors about the
offering but is not disclosed in the accompanying pro
spectus or the confirmation. 2. LETTER OF INTENT.
abbreviated term sheet. A term sheet that includes (1)
the description of the securities as required by Item
202 of SEC Regulation S-K, or a good summary of
that information; and (2) all material changes to the
issuer's affairs required to be disclosed on SEC Form
S-3 or F-3, as applicable.
termtime. The time of the year when a court is in session.
[Cases: Courts C=>63, 65.]
term to conclude. See TERM (5).
term to propound all things. See TERM (5).
terra nullius (ter-<:l n;ll-ee-<:ls), n. [Latin "the land of
no one"] A territory not belonging to any particular
country.
terre-tenant (tair ten-<:lnt). (l5c) 1. One who has actual
possession ofland; the occupant ofland. 2. One who
has an interest in a judgment debtor's land after the
judgment creditor's lien has attached to the land (such
as a subsequent purchaser). -Also spelled tertenant
(t;lr-ten-<:lnt). -Also termed land-tenant. [Cases:
Judgment C=>793, 794.]
territorial, adj. Having to do with a particular geograph-
ical area.
territorial court. See COURT.
territorialism. (1977) The traditional approach to choice
oflaw, whereby the place ofinjury or ofcontract forma
tion determines which state's law will be applied in a
case. See CHOICE OF LAW.
territoriality. Int'llaw. The principle that a nation has
the right of sovereignty within its borders. [Cases:
International Law C=>7.]
"Three maxims formulated by the seventeenth-century
Dutch scholar Ulrich Huber undergird the modern concept
of territoriality: (1) a state's laws have force only within
the state's boundaries; (2) anyone found within the state's
boundaries is subject to the state's authority; and (3)
comity will discipline sovereign exercises of authority so
that the territorial effect of each state's laws is respected."
Paul Goldstein, International Copyright: Principles, Law,
and Practice 64 (2001).

1611
territorial jurisdiction. See fURISDICTION.
territorial law. The law that applies to all persons within
a given territory regardless of their citizenship or
nationality. Cf. PERSONAL LAW.
"[Tlhe expression 'territorial law' ... is not confined to
the positive rules that regulate acts and events occurring
within the jurisdiction, but includes also rules for the
choice of law. English rules for the choice of law are part
of the law of England and when a court, for instance, tests
the substantial validity of a contract made by two foreign- I
ers in Paris by reference to French law, it applies a rule
imposed by the English sovereign and it may accurately
be described as putting into force part of the territorial
law of England." G.c. Cheshire, Private International Law
32 (6th ed. 1961).
territorial property. Land and water over which a state
has jurisdiction and control, whether the legal title is
held by the state or by a private individual or entity .
Lakes and waters wholly within a state are generally its
property, as is the marginal sea within the three-mile
limit, but bays and gulfs are not always recognized as
state property. [Cases: States (;--; 11.]
territorial sea. See territorial waters under WATER.
territorial waters. See WATER.
territory, n. (l4c) 1. A geographical area included within
a particular government's jurisdiction; the portion of
the earth's surface that is in a state's exclusive posses
sion and contro!' Cf. INSULAR AREA. [Cases: Interna
tional Law
non-self-governing territory. lnt'llaw. A territory that
is governed by another country . These types ofter
ritories are rarely allowed representation in the gov
erning country's legislature.
trust territory. lnt'llaw. A territory to which the
United Nations' international trusteeship system
formerly applied; a territory once administered by
the United Nations or a member state for the politi
cal, economic, educational, and social advancement
of its inhabitants. -All territories that were subject
to this system either became independent nations or
opted to become part of another nation.
2. A part of the United States not included within any
state but organized with a separate legislature (such
as Guam and the U.S. Virgin Islands). Cf. COMMON
WEALTH (2); DEPENDENCY (1). [Cases: Territories
7.] territorial, adj.
"The United States has had territories from its inception.
The Northwest Territory, along with the thi rteen original
states, was a part of the nation when the constitution was
ratified. The original U.S. constitution expressly granted
Congress the power to govern territories. Before the Civil
War all of the territories were on the North American conti
nent and contiguous with the states or the other territories.
After the Civil War with the purchase of Alaska in 1867
(called 'Seward's Folly' or 'Seward's Icebox' by detractors)
came the United States' first acquisition of non-contigu
ous territory. Alaska did, however, have certain basics in
common with earlier U.S. territories. Alaska was on the
North American continent and sparsely populated ....
In the latter part of the 19th century, the U.S. became tertenant
territory ofa judge. (18c) The territorial jurisdiction of a
particular court. See 1URISDICTION (3). [Cases: Courts
(:::::'29, 171; Judges C=:30.J
terrorem clause. See NO-CONTEST CLAUSE.
terrorism, n. (l8c) The use or threat of violence to intimi
date or cause panic, esp. as a means of affecting political
conduct. See 18 USCA  2331. See also terroristic threat
under THREAT; terrorism insurance under INSURANCE.
[Cases: Extortion and Threats C=>25.]- terrorist, adj.
&n.
bioterrorism. Terrorism involving the intentional
release ofharmful biological agents, such as bacteria
or viruses, into the air, tood, or water supply, esp. of
humans. Also termed biological terrorism.
cyberterrorism. Terrorism committed by using a
computer to make unlawful attacks and threats of
attack against computers, networks, and electroni
cally stored information, and actually causing the
target to fear or experience harm.
domestic terrorism. 1. Terrorism that occurs primar
ily within the territorial jurisdiction of the United
States. 18 USCA  2331(5).2. Terrorism that is carried
out against one's own government or fellow citizens.
[Cases: War and National EmergencyC:::-;50.]
ecoterrorism. Terrorism related to environmental
issues or animal rights. -Also termed enviroterror
ism; ecological terrorism; environmental terrorism;
ecosabotage; ecovandalism.
international terrorism. Terrorism that occurs pri
marily outside the territorial jurisdiction of the
United States, or that transcends national boundaries
by the means in which it is carried out, the people it is
intended to intimidate, or the place where the perpe
trators operate or seek asylum. 18 USCA  2331(1). Cf.
state-sponsored terrorism. [Cases: War and National
Emergency C=:SO.J
state-sponsored terrorism. 1. International terrorism
supported by a sovereign government to pursue stra
tegic and political objectives. 2. See state terrorism
(1). Cf. international terrorism.
state terrorism. 1. Terrorism practiced by a sovereign
government, esp. against its own people . Under
international legal principles of sovereignty, a gov
ernment's conduct that has effects only within its
borders is generally not subject to interference from
other nations. 2. See state-sponsored terrorism (1).
terrorism insurance. See INSURANCE.
terroristic threat. See THREAT.
terrorizing, n. Family law. A parent's or caregiver's act
of orally assaulting, bullying, or frightening a child, or
causing the child to believe that the world is a hostile
place.
interested in various islands around the world." Stanley Terry stop. See STOP AND FRISK. K. Laughlin Jr., The Law of United States Territories and
Affiliated Jurisdictions  3.], at 25-26 (1995). tertenant. See TERRE-TENANT.

tertia 1612
tertia (tar-shee-a), n. Hist. A third. _ A widow's terce
was usu. referred to as tertia rationabilis ("a reason
able third").
tertium quid (tar-shee-am kwid). [Latin] Scots law. A
third thing that has qualities distinct from the prior
two components.
"Thus where, by the confusion of liquids or commixture
of solids, the subject produced is of a character different
from that of either of its component parts, it is called a
tertium quid." John Trayner, Travner's Latin Maxims 598
(4th ed. 1894).
tertius gaudens (tar-shee-as gaw-denz). [Latin "a rejoic
ing third"] A third party who profits when two others
dispute.
testable, adj. (17c) 1. Capable ofbeing tested <a testable
hypothesis>. 2. Capable of being transferred by will
<today Virtually all property is considered testable>.
3. Capable of making a will <an I8-year-old person is
testable in this state>. 4. Legally qualified to testify as a
witness or give evidence <the witness is testable about
the statement>.
Test Act. Hist. An English statute that required a person
who occupied a public office or position of trust to be a
member of the Church of England, to swear the Oath
of Supremacy, and to sign a declaration against tran
substantiation. 25 Car. 2, ch. 2 (1673). _ 1be Act was
repealed in 1828.
test action. See test case (2) under CASE.
testacy. The state or condition of a person having died
with a valid will. Cf. [!IHESTACY. [Cases: Wills ~1.]
testament (tes-ta-m<lnt). (14c) l. Traditionally, a will
disposing ofpersonal property. Cf. DEVISE (4). 2. WILL
(2).
closed testament. See mystic will under WILL.
inofficious testament. Civil law. A will that does not
dispose of property to the testator's natural heirs; esp.,
a will that deprives the heirs of a portion ofthe estate
to which they are entitled by law. Also termed
inofficious will; unofficious will. Seeforced heir under
HEIR. [Cases: Wills ~82.]
military testament. See soldier's will under WILL.
mutual testament. See mutual will under WIn.
mystic testament. See mystic will under WILL.
offiCiOUS testament. Civil law. A will that disposes of
property to the testator's family; a will that reserves
the legitime for the testator's children and other
natural heirs. Also termed officious will. See
LEGITIME.
sealed testament. See mystic will under WILL.
secret testament. See mystic will under WILL.
testamentary (tes-ta-men-ta-ree or -tree), adj. (l4c) 1. Of
or relating to a will or testament <testamentary intent>.
[Cases: Wills 2. Provided for or appointed
by a will <testamentary guardian>. 3. Created by a will
<testamentary
testamentary capacity. See CAPACITY (3). testamentary class. See CLASS (3).
testamentary condition. See CONDITION (2).
testamentary disposition. See DISPOSITION (1).
testamentary gift. See GIFT.
testamentary guardian. See GUARDIAN.
testamentary heir. See HEIR.
testamentary instrument. See WILL.
testamentary intent. See INTENT (1).
testamentary