Legal Dictionary of Pakistan

Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.

P & L. abbr. Profit and loss.

See INCOME STATEMENT.

Profit

n. 1. The excess of revenues over expenditures in a business transaction; GAIN (2). Cf. EARNINGS; INCOME.

Profiteering

n. The taking advantage of unusual or exceptional circumstances to make excessive profits, as in the selling of scarce goods at inflated prices during war. - profiteer, vb.

accounting for profits

An action for equitable relief against a person in a fiduciary relationship to recover profits taken in a breach of the relationship. - Often shortened to accounting. The term accounting, or accounting for profits, is used in several ways. In its most important meaning, it is a restitutionary remedy based upon avoiding unjust enrichment. In this sense it reaches monies owed by a fiduciary or other wrongdoer, including profits produced by property which in equity and good conscience belonged to the plaintiff. It resembles a constructive trust in that tracing may be used to reach profits. But even if tracing fails, the plaintiff may recover a judgment for the profits due from use of his property." Dan B. Dobbs, Law of Remedies § 4.3(5), at 408 (2d ed. 1993).

accumulated profit

Profit that has accrued but not yet been distributed; earned sur- plus. - Also termed undivided profit. See retained earnings under EARNINGS.

corporation for profit

See for-profit corporation under CORPORATION.

earnings and profits

Corporations. In corporate taxation, the measure of a corporation's economic capacity to make a shareholder distribution that is not a return of capital. 0 The distribution will be dividend income to the shareholders to the extent of the corporation's current and accumulated earnings and profits. Cf. accumulated-earnings tax under TAX; accumulated taxable income under INCOME.

excess profits tax

1. A tax levied on profits that are beyond a business's normal profits. ( This type of tax is usu. imposed only in times of national emergency (such as war) to discourage profiteering. 2. See accumulatedearnings tax.

excess-profits tax

See TAX. excess

for-profit corporation

A corporation organized for the purpose of making a profit; a business corporation. - Also termed corporation for profit; moneyed corporation.

gross profit

See PROFIT

lost profits

A measure of damages that allows a seller to collect the profit that would have been made on the sale if the buyer had not breached. UCC § 2-708(2).

mesne profits

The profits of an estate received by a tenant in wrongful possession between two dates. - Also termed (archaically) medium tempus.

net profit

Total sales revenue less the cost of the goods sold and all additional expenses. - Also termed net revenue. Cf. gross profit.

nonprofit association.

A group organized for a purpose other than to generate income or profit, such as a scientific, religious, or educational organization.

nonprofit corporation

A corporation organized for some purpose other than making a profit, and usu. afforded special tax treatment. - Also termed not-for-profit corporation. Cf business corporation.

nonprofit corporation.

See CORPORATION.

not-for-profit corporation

See nonprofit rporation.

operating profit

Total sales revenue less all operating expenses, no adjustment being made for any nonoperating income and expenses, such as interest payments.

operating profit.

See PROFIT.

paper profit

See PROFIT.

pernor of profits

Hist. A person who receives the profits of property; one who has the pernancy of the profits.

profit a prendre

[Law French "profit to take"] (usu. pl.) A right or privilege to go on another's land and take away something of value from its soil or from the products of its soil (as by mining, logging, or hunting). - Also termed right of common. Pl. profits a prendre. Cf EASEMENT.

profit insurance

See INSURANCE.

profit margin

1 The difference between the cost of something and the price for which it is sold. 2. The ratio, expressed as a percentage, between this difference and the selling price. For example, a widget costing a retailer $10 and selling for $15 has a profit margin of 33% ($5 difference divided by $15 selling price). -Often shortened to margin.

profit-and-loss account

See ACCOUNT.

profit-and-loss statement

See INCOME STATEMENT.

profit-sharing plan

An employer's benefit plan that allows an employee to share in the company's profits. ( ERISA governs the administration of many profit-sharing plans. See EMPLOYEE RETIREMENT INCOME SECURITY ACT.

qualified profit-sharing plan

A plan in which an employer's contributions are not taxed to the employee until distribution. The employer is allowed to deduct the contributions. IRC (26 USCA) § 401.

qualified profit-sharing plan.

See PROFITSHARING PLAN.

rents, issues, and profits

The total income or profit arising from the ownership or possession of property.

short-swing profits

Profits made by a corporate insider on the purchase and sale (or sale and purchase) of company stock within a six month period. ( These profits are subject to being returned to the company.

surplus profit

See PROFIT.

trespass for mesne profits

Hist. An action -supplementing an action for ejectment -brought against a tenant in possession to recover the profits wrongfully received during the tenant's occupation.

undistributed profit

See retained earnings under EARNINGS.

undivided profit

See accumulated profit.

unrealized profit

See paper profit. 2. A servitude that gives the right to pasture cattle, dig for minerals, or otherwise take awy some part of the soil; PROFIT A PRENDRE. ( A profit may be either appurtenant or in gross. See SERVITUDE.

violent profits

Scots law. Rents or profits of an estate kept by a holdover tenant who has already been warned by the landlord not to keep them.

windfall profits tax

A tax imposed on a business or industry as a result of a sudden increase in profits. ( An example is the tax imposed on oil companies in 1980 for profits resulting from the Arab oil embargo of the 1970s.

windfall-profits tax

See TAX.