Jargon Buster
Knowing your Covenants from your Contracts.
Commercial law can seem complicated when you’re unfamiliar with the jargon. So we’ve translated some of the more common terminology into language we can all understand. Some, like Banking and Tax, may seem quite obvious, but here we’ll be looking at them in the context of a legal career.
A&C
Law that relates to the movement of people, goods and services within the European Union.
Advisory
Providing clients with expertise on particular aspects of the law and recommendations as to the action they should take in given situations.
Associate
At Baker McKenzie this refers to an entry to mid-level qualified lawyer working in any of the Firm’s practice groups, supporting the Partners.
Banking
Banking and Finance law is predominantly focused on the contractual relationship between lenders and borrowers.
Billable hours
Time spent working on a project that can be charged to the client, according to an agreed hourly rate.
Close of Business/Close of Play (COB/COP)
End of the working day.
Commercial, Data, IP and Trade (CDIT)
Law that relates to the ownership and protection of ideas and inventions. In a fast-changing, competitive and increasingly tech-led world, IP has become an integral part of the business landscape.
Contentious
Law that relates to resolving disputes between different parties.
Corporate Finance
Law that relates to the various ways corporations raise funds – to grow or strengthen their existing business, or realise new opportunities.
Corporate Reorganisations (Reorgs)
Law that relates to the solvent reorganisation of company group structures, in particular company law.
Corporate Social Responsibility (CSR)
The responsibility an organisation has to make a positive impact on its people, its communities and the wider world.
Corporate, Mergers and Acquisitions (M&A)
Law that relates to advising companies on the purchasing and / or merging with other companies.
Corporate, Private Equity Finance (PEF)
Private equity law is predominantly advising on private equity investments, venture capital, management buyouts and investment agreements.
Dispute Resolution
Helping conflicting parties to reach an agreement and, wherever possible, avoid going to court. Includes various alternative methods, such as mediation, negotiation and arbitration.
Due Diligence
Thorough research of a target company or client.
Employment
Employment law regulates the relationship between employees and employers and / or Trade Unions / Government – from grievance procedures to employers’ rights, duties and obligations.
Environmental, Social and Governance (ESG)
The three core elements of a responsible law firm’s sustainability strategy.
Equity
In the context of a law firm, this means a share of the Firm’s profits.
Financial Times Share Index (FTSE 100)
The 100 companies traded on the London Stock Exchange with the highest market capitalisation.
Fixed Fee
Price agreed between a law firm and its client to complete a given task. Sometimes used instead of billable hours.
Global-Local
Combining global reach with local knowledge to help clients achieve their internal goals while being mindful of different cultures and practices.
Hourly Rate
Agreed amount a client is charged for each hour a lawyer spends working on their behalf.
Inclusion and Diversity (I&D)
Inclusion is about creating an environment in which everyone feels they belong, without having to conform; that their contribution matters and they are able to perform to their full potential. Diversity is about recognising and valuing difference, acknowledging the benefits of having a range of perspectives in decision-making and a workforce that reflects the wider community.
Legal Tech
Technology designed to support, enhance or replace traditional ways of delivering legal services.
Legalese
Formal or technical language associated with legal documents.
Magic Circle
Informal name for the five most prestigious law firms headquartered in London.
Management Committee (ManCom)
At Baker McKenzie, this refers to an elected board of senior stakeholders, across practice groups and business services, who are responsible for setting the strategic direction of the Firm. They are key decision-makers on policies and processes, ensuring the activities of the Firm are in line with its objectives and values.
Newly Qualified (NQ)
Newly qualified Solicitor.
Paralegal
Crucial support staff whose work is often similar to that of a trainee and includes tasks such as preparing legal documents, conducting research and general office administration.
Partner
Highly experienced lawyer who often (but not always) owns a share of the relevant firm in return for their own investment in it. There can be different levels of Partner; a salaried Partner, a fixed share equity Partner and a full equity Partner. At Baker McKenzie we have both Local and Principal Partners.
Post-Qualification Experience (PQE)
Amount of experience a Solicitor has gained since qualifying. E.g. three years’ PQE.
Pro Bono
Legal advice or representation provided by a law firm, free of charge.
Professional Support Lawyer (PSL)
Qualified lawyer who acts as a central resource to carry out research and share knowledge in a given practice area.
Real Estate Law
Also known as property law, deals with transactions that relate to residential and commercial property, including specialist areas like property finance, mortgage lending and social housing.
Retention Rate
Percentage of trainees who stay with a law firm after their Training Contract, as a NQ.
Seats
Different departments within the Firm that trainees ‘rotate’ between as part of their Qualifying Work Experience. Training Contracts at Baker McKenzie consist of four six-month seats.
Silver Circle
Informal name given to an elite group of corporate law firms.
Solicitors Regulation Authority (SRA)
Regulatory body for Solicitors and other legal professionals in England and Wales.
Structured Capital Markets (SCM)
The law around complex financial instruments (like Collateralised Debt Obligations, or CDOs) and the markets they are traded in.
Supervisor
Line manager, usually a qualified Solicitor in the context of a Training Contract. Trainees will tend to change supervisor each seat.
Swiss Verein model
Business model that enables companies to merge under the same brand, while keeping their finances and liabilities separate within each office or region.
Tax
Law that regulates the taxation of individuals and companies. Private sector tax lawyers advise clients on their tax affairs. Public sector tax lawyers work with government tax and revenue departments to enforce tax legislation.
Technology, Media and Telecommunications (TMT)
The TMT sector is an industry group that includes the majority of companies that are focused on new technologies and is one of the fastest developing sectors in the legal market.
The City
The City of London, which generally refers to the UK Capital’s business district.
Time-Keeping
Tracking and recording billable and non-billable hours.
Training Contract
Two-year period of Qualifying Work Experience that serves as the final step to qualifying as a Solicitor.
Training Principal
Practicing Solicitor responsible for the training of Trainee Solicitors within their firm.
Transactional Law
Transactional law is a type of practice dealing with the exchange of products, goods and services within business and commerce.
Utilisation
Metric used to measure a lawyer’s activity against the total time available to that person.
Vacation Scheme
Structured work experience placement within a law firm.
