Extra home

Gazumping
The acceptance by a seller of a higher offer despite having previously accepted a lower one from another buyer. In England and Wales, a seller is entitled to do this provided contracts have not been exchanged. The position is different in Scotland.

Gazundering
The submission by a buyer of a lower offer despite having previously agreed a higher price. In England and Wales, a buyer is entitled to do this provided contracts have not been exchanged; the position is different in Scotland.

Gearing
The amount borrowed as a proportion of the amount invested. The greater the borrowing, the greater the gearing (and the risk).

General meeting
Of companies, a meeting of shareholders, being either an Annual General Meeting or an Extraordinary Meeting.

General power of attorney
A short form of power prescribed by the General Powers of Attorney Act 1971 by which the donor of the power authorises his attorney to do anything that he could have done himself. Such powers end if the donor becomes mentally incapable of managing his own affairs. Contrast Enduring Powers of Attorney.

Good faith
Done with honest intention.

Grant of letters of administration
An official document obtained by Administrators of an estate proving that they have the legal authority to deal with a deceased's estate.

Grant of probate
An official document issued to the executors by the Probate Registry proving that they have the legal authority to deal with a deceased's estate. In Scotland, it is called a Confirmation.

Ground rent
A rent, substantially below the market rate, payable by a tenant usually of a long lease for which a capital sum (premium) was paid at the beginning.

Group litigation order
A court order which allows cases covering similar issues to be managed together.

Guarantee
An undertaking to be responsible for the performance of another person's legal obligations. A bank may ask the directors to guarantee a company's overdraft. A landlord may ask a tenant to find a guarantor that the rent will be paid and the tenant's covenants performed.

Guardian
A person with legal control of, and responsibility for, a child.

Hearsay, hearsay evidence
Evidence based on something the witness has been told but did not experience for himself at first hand. As such, it is treated with caution and may not be admitted at all if the original source is available to give evidence in person.

Highway Code
A booklet issued by the Department of Transport giving guidance on the use of the roads.

Hypothecation
See Pledge.

IHT
Inheritance tax, charged upon a deceased's estate and on gifts which fall outside the exemption limits.

Implied terms
Terms that are not expressly stated in a contract but are derived from custom and usage or are necessary to make it work from a business point of view.

Incorporate
To create a limited company.

Indemnity
An undertaking by one person to save another harmless from loss. Most insurance policies and many guarantees come within the definition of indemnity.

Insolvent estate
An estate which has liabilities, including funeral and administration expenses, that exceed its assets.

Interest only mortgage
A mortgage under which the borrower only pays interest during the mortgage term and the whole of the capital is repaid at the end.

Intestate
Someone who dies without leaving a valid will. The estate itself is then also described
as intestate.

ISA
Individual Savings Account. Provided that certain rules are observed, these accounts enjoy tax benefits.

ISA mortgage
This ressembles an endowment mortgage but the saving scheme is an ISA and the contibutions are restricted.

Issue
All of the children, grandchildren and remoter descendants of a person, whether born within or outside marriage, including adopted children.

Issued shares
Shares which have been allotted by a company to its shareholders. Contrast Authorised capital.