Legal Jargon A-Z: A Plain-English Guide for Founders (and the Rest of Us) 

Tom Bohills, Founder of Founders Law, decodes the alphabet of legal jargon, helping businesses avoid classic pitfalls and unnecessary costs.

Ever sat through a meeting where someone dropped “fiduciary” or “vicarious liability” like it was just another Tuesday, and you nodded along thoughtfully like you knew what they meant? Legal terminology can feel like a whole other language but don’t worry, we’re here to translate. 

At Founders Law, we don’t think legal advice should sound like a lecture in Latin. We speak like humans: no riddles, no robotic jargon. Just clear, actionable, commercial-first legal support for founders, startups, and scaling businesses. Because understanding your legal risks and rights shouldn’t require a law degree (that’s our job).

Whether you’re reviewing a contract, launching a new product, or trying to figure out if someone can actually enforce that NDA, this guide is for you. Bookmark it, share it, and drop it casually in your next investor meeting if you’re feeling bold.

Legal Jargon, Decoded

A – ADR (Alternative Dispute Resolution)

Settle arguments without going full courtroom drama. ADR includes processes like mediation and arbitration—less stress and often faster results.

B – Barrister

The courtroom specialists. Barristers represent clients in court and wear those iconic wigs and gowns. (Yes, that’s still a thing.)

C – Caveat

Latin for “let them beware.” In the commercial world, it’s lawyer-speak for a heads-up: there’s a risk you need to know about. You’ll often hear your solicitor say “with a caveat…” before flagging something hidden in the small print, a potential loophole in a contract, or a risk in a deal.

At Founders Law, we don’t just throw caveats at you—we explain what they mean, why they matter, and how to handle them

D – Deed

Not just something heroic. A deed is a formal legal document that needs to be signed, witnessed, and delivered to be legally valid—often used in property or agreements without fees involved.

E – Engagement Letter

The first step in working with a solicitor. An engagement letter outlines what we’re doing, how we’ll do it, and what it’ll cost. It sets expectations and protects both sides. We write ours in plain English and usually with one less zero on the rates than other firms.

F – Fiduciary

Someone who legally has to act in your best interest. Think trustees, solicitors, company directors. When this duty is breached? Not good.

G – Good Faith

The legal way of saying “play fair.” Many contracts include a requirement to act honestly and reasonably—aka in good faith.

H – Heads of Terms

Before the full contract comes the Heads of Terms—a non-binding document that outlines the key points everyone’s agreed on in a deal (like an investment, acquisition, or partnership). It’s your commercial handshake, captured on paper.

I – Indemnity

A promise to cover someone’s losses if things go wrong. Think of it as the legal version of “I’ve got your back.”

J – Joint and Several Liability

If multiple people owe a debt, the person owed can chase any one of them for the full amount. Choose your business partners wisely.

K – Know-How

In legal circles, “know-how” refers to the practical, experience-based knowledge solicitors use to advise clients. It’s not just theory, it’s the stuff that helps you navigate real-life contracts, deals, and negotiations with confidence. At Founders Law, that’s our secret sauce, all our lawyers have first hand in house experience so they truly understand the journey you’re on.

L – Letters of Intent (LOI)

Think of a Letter of Intent as a pre-deal promise. It’s a document that shows both sides are serious about moving forward. It’s used interchangeably with ‘Heads of Terms’.

M – Misrepresentation

When someone lies or misleads you to get you to sign a contract. If proven, you could cancel the deal or claim damages.

N – NDA (Non-Disclosure Agreement)

A contract to keep things confidential. NDAs are used all the time in business to protect trade secrets, strategies, and sensitive chats.

O – Option Agreement

An Option Agreement gives someone the right (but not the obligation) to do something in the future—like buying shares in your company. These are often used in employee share schemes or early investment deals.

At Founders Law, we help founders set up options the right way This way your team is motivated, your cap table stays healthy, and you’re not hit with surprises down the line.

P – Power of Attorney

A legal document that lets someone else act on your behalf. Solicitors draft these when you need someone to handle financial, legal, or operational matters for you either temporarily or long-term. Super useful in startup land if you’re globe-trotting or scaling fast.

Q – Qualifying Round

A Qualifying Round is an investment round that meets certain criteria—often triggering things like conversion of a SAFE or convertible loan note into equity.

We help founders spot the fine print in these clauses and make sure you’re not caught out by what counts as “qualifying” (spoiler: it’s not always what it seems). 

R – Retainer

A retainer is an agreement where a solicitor provides ongoing legal support for a client like having a legal department on standby. Perfect for busy founders who want advice on-tap without surprise bills. Safe to say we offer these alongside a whole load of other weird and wonderful fee models.

S – Statement of Truth

A declaration that what you’ve said in a legal document is true. Lie here, and you’re in contempt of court. 

T – Tort

A civil wrong (like negligence or defamation) rather than a breach under a contract. If someone causes harm, you might be able to sue them in tort law.

U – Undertaking

A formal legal promise, often used by solicitors or parties in court. Break it, and there are consequences.

V – Vicarious Liability

In a commercial context this is when a business or employer is held responsible for something their staff did—if it happened while they were doing their job.

W – Without Prejudice

Legal speak for “we’re trying to settle this, but these words can’t be used against us in court.” It encourages open negotiation.

X – ‘X v. Y’ (Anonymous Case)

Placeholder names used in legal examples or where names are protected by court order. No mystery, just anonymity.

Final Thoughts: Because Law Shouldn’t Be a Headache

Whether you’re reviewing founder agreements, protecting your IP, or navigating investor docs, a little legal knowledge goes a long way. But you shouldn’t need to decipher ancient scrolls of hieroglyphics just to run your business.

At Founders Law, we’ll always tell you what we’re doing, why it matters, and how it protects you. We’re here to make law work for you as you grow and scale. 

Want jargon-free legal support that fits your business (and your brain)? Get in touch with tilly@founders-law.co.uk