Independent Contractor

One hired to undertake a specific project using his own methods (not an employee)

Escrow

Account held for the benefit of others, into which parties typically deposit documents, instructions, and funds for a transfer of property

Legalese

Overly formal, often archaic language sometimes used in legal documents

Assignment

Transfer of interest in property or some right (contractual entitlement) to another

Boilerplate

Standard terms included in most contracts

Consignment

An arrangement under which goods are placed for sale, but title does not transfer to the seller

Passive voice

Subject is acted upon

UCC search

Activity conducted to find security interests in personal property that have been recorded under UCC Article 9

Active Voice

The subject of the sentence acts

UCC Financing Statement

Evidence that property is security for debt, typically filed with the Secretary of State

Redline

Feature in word processing software that enables changes in a document to be tracked

Severability Clause

Contract provision that in the event that one part of the contract is found to be invalid, the rest of the contract shall remain in effect

Delegation

Pass contractual obligations to another