Terms used in trade such as Legal Entity,Legal Tender ,Legalese,Lemon,Letter Of Comfort,Letter of Credit etc



The terms used in business such as Legal Entity,Legal Tender ,Legalese,Lemon,Letter Of Comfort,Letter of Credit etc.



This post explains about terms used in business such as Lead agency, Leadership, Leading Indicator,Legal Entity,Legal Tender ,Legalese,Lemon,Letter Of Comfort,Letter of Credit etc. These terms used in international business are arranged in alphabetical order and you may add more information about terms used in export business at the end of this article, if you wish.


The terms used in business


LEA :Local Education Agency. Indicates that a public board of education or other public authority maintains administrative control of the public schools in a city or county. Synonymous with local school system.


Lead agency:An agency that is responsible for managing common categories of expenditure across 2 or more agencies.


Lead User - Term introduced by economist Eric von Hippel in 1986. Lead users are individuals or companies who greatly benefit from being the first to use or adapt a product for a particular need, often months or years before the general public or other businesses are aware of the need for the product.


Leader - Someone who leads, sets example, inspires, motivates, etc - technically having the personal qualities which attract followers for given situations. See the leadership theory section for lots more definitions and explanations, including differences between leadership and management. And see the leadership tips page for a more general guide to modern ethical progressive leadership.


The terms used in  business such as Legal Entity,Legal Tender ,Legalese,Lemon,Letter Of Comfort,Letter of Credit etcLeadership - A person or number of people responsible for leading a team or group of people, usually in some sort of organized body or company, or the direction of a smaller team in a specific project or situation. See the leadership theory section for clarifications of leadership and the many theories which seek to explain and teach it. And see the leadership tips page for a more general guide to modern ethical progressive leadership.


Leading and Lagging - Reduction of transaction exposure through timing of cash flows within the corporation.


Leading Indicator - A particular measure of a country's economic activity, used to predict near future economic trends.


Lean - Also known as the Toyota Production System or Just-In-Time Production. A system used in management, production, manufacturing, etc., to decrease waste and increase efficiency, especially with the use of automated assembly lines in the motor industry.


Learning Curve - A graph depicting the rate at which a person learns a new skill. A steep learning curve shows that a person is learning quickly, and a shallow learning curve means that a person is slower and taking more time to learn.


Lease management / Location - gérance :Contract whereby the owner or the management of a business grants total or partial rights to an individual to run it on his account and at his own risk in exchange for the payment of a rent or a share in the profits.


Lease Purchase - A finance agreement in which an item, usually a car, is leased for a certain period of time with an option to purchase at the end of the contract.


Leaseback - An arrangement between a purchaser of a property and the vendor in which the vendor immediately leases the property back from the purchaser.


Leasehold:  The interest which a lessee has in realty


Least Developed Country (LDC) - A country, according to United Nations, characterized as having low gross national income per capita, a weakness in human resources, and economic vulnerability. Note: Many sources prefer LLDC to denote Least Developed Countries and LDC for Less Developed Countries.


Leave Of Absence - The period of time which a person is permitted by their employer to be absent from their job.


LEC - denotes a Local Exchange Company or a Local Telephone Company.


Legal Aid - Legal assistance provided , usually by the state, for people or organisations who cannot afford to pay for solicitors or legal advice.


Legal entity / Personne morale :The notion expresses the autonomy of the company or group from its partners or management. A "legal entity" has the same attributes as an individual (natural person): a name (registered name), address (corporate address), duration, nationality, etc. and some rights and obligations there are independent of the members that form it.


Legal Entity - An individual or organisation who has the legal right to enter into a contract or an agreement, is responsuble for its actions, and can sue or be sued if the terms of the contract are broken.


Legal redress / Redressement judiciaire :Legal process applicable to traders, artisans, farmers and private law corporations defaulting on payments, in order to bail out the company, continue its business, keep its employees on and clear its liabilities.


Legal Reserve - The minimum amount of money, required by law, that a bank, insurance company, etc., must set aside in order to be able to operate.


Legal Tender - In day-to-day language the term generally refers to coinage or banknotes which have not been withdrawn or demonetised by the Bank of England and so are valid, but technically the term the UK refers to forms of currency which by law must be accepted by a creditor in payment of a debt. See the detailed technical definition of legal tender.


Legalese - An informal term for technical legal language, especially in documents intended for public/consumer readership, such as house conveyancing contracts, insurance policies, financial documents, especially loan arrangements, all sorts of terms and conditions, employment contracts, and general 'small print' in contracts. A cynical view asserts that much legalese is wholly intentional by the document writers, who are typically lawers and solictors, so as to dissuade customers/users from reading and understanding contractual details which may commonly be disavantageous or even highly onerous or potentially damaging. Incidentally, many contracts are produced entirely in upper case (capital letters), supposedly for emphasis, although in many cases this intends to worsen readability and accessibility still further.


Lemon - A defective product which is poor quality and fails to function as promised. Particularly used in the automotive industry, specifically for a poor-quality second-hand car, or a sub-standard new vehicle.


Lender Of Last Resort - A country's central bank which loans money to other banks or financial institutions which cannot borrow money from anywhere else and do not have enough reserves to cover cash withdrawals by their customers.


Letter of agreement: a document that constitutes a simple form of contract.


Letter of Allotment:It refers to a letter that intimates the share applicants the fact that they have been allotted shares.


Letter of Application:A letter that offers to the company for subscription to its capital is called a letter of application. Again when a job seeker writes an application to the prospective employer for getting a job, the application is known as a letter of application.


Letter Of Comfort - A letter of approval written to a bank by a parent company on behalf of a subsidiary company which needs financial backing.


Letter of Credit (L/C): A L/C is a commitment, usually by a bank on behalf of a client, to pay a beneficiary (usually the exporter) a stated amount of money provided the beneficiary has complied with all the terms and conditions of the letter of credit. This usually involves the exporter presenting specified trade documents such as the commercial invoice, bill of lading, inspection and insurance certificates, etc. The foreign buyer applies for issuance of a letter of credit from the buyer’s bank to the exporter’s bank and therefore is called the applicant; the exporter is called the beneficiary. An Irrevocable Letter of Credit cannot be changed or amended unilaterally by either the applicant (buyer) or the beneficiary (seller) unless both parties mutually agree and is the most common form of L/C. A Confirmed Letter of Credit adds the payment guarantee of the exporter’s bank in case the buyer and the buyer’s bank cannot make payment when the exporter has complied with the terms of the L/C. A Standby Letter of Credit is a continuous “back-up” letter of credit that guarantees the exporter will receive payment by the issuing bank if the importer defaults on the order.


Letter of Credit: a letter issued by a bank that can be presented to another bank to authorize the issue of credit or money.


Letter of Hypothecation:An instrument that gives a firm, banker or a person a lien over goods in consideration for advances of money is known as a letter of hypothecation. In export trade, such letter given to a bank for an advance made to the exporter authorizes it to sell the goods specified there in case the importer fails to pay or accept the bill presented by the bank.


The above details describes about terms called in business such as Lead agency, Leadership, Leading Indicator,Legal Entity,Legal Tender ,Legalese,Lemon,Letter Of Comfort,Letter of Credit etc. These phrases may help importers and exporters on their day to day business activities. The readers can also add more information about terms used in overseas trade below this post.The terms used in trade such as Laffer Curve,Laity ,Lalssez Faire,Large Cap,Law of One Price,Lay Days,Layaway etc



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