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Simple English definitions for legal terms
lawful interest
Read a random definition: lex Scribonia
A quick definition of lawful interest:
Lawful interest: This means something that someone has a right to, like money or property. It can also mean the benefit or advantage someone gets from something. For example, if you lend someone money, they have to pay you back with interest, which is a little bit extra money that you get as a benefit for lending them the money.
A more thorough explanation:
Definition: Lawful interest refers to the legal share or right in something, often of a financial nature, that a person or entity is entitled to. It can include any aggregation of rights, privileges, powers, and immunities, or refer to any one right, privilege, power, or immunity.
Examples:
- Beneficial interest: A person with a beneficial interest in a trust receives income from the trust but does not hold legal title to the trust property.
- Controlling interest: Sufficient ownership of stock in a company to control policy and management; for example, a greater-than-50% ownership interest in an enterprise.
- Equitable interest: An interest held by virtue of an equitable title or claimed on equitable grounds, such as the interest held by a trust beneficiary.
These examples illustrate how lawful interest can refer to different types of rights or claims, such as receiving income from a trust, controlling a company, or holding an interest in a trust as a beneficiary. In each case, the person or entity has a legal entitlement to something, whether it is a share of profits or a right to make decisions.