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natural right A right that is conceived as part of natural law and that is therefore thought to exist independently of rights created by government or society, such as the right to life, liberty, and property. See NATURAL LAW.

natural servitude 1. A servitude naturally appurtenant to land, requiring no special mode of acquisition. - An example is the right of land, unencumbered by buildings, to the support of the adjoining land. 2. Civil law. A servitude imposed by law because of the natural situation of the estates. An example of a natural servitude is a lower estate that is bound to receive waters flowing naturally from a higher estate.

natural succession Succession between natural persons, as in descent on the death of an ancestor.

natural-born citizen A person born within the jurisdiction of a national government.

natural-born subject A person born within the dominion of a monarchy, esp. England, - Also termed liege subject. Cf. NATIONAL. 2. The matter of concern over which something is created <the subject of the statute>. Also termed (in sense 2) subject matter.

naturalization court See NATURALIZATION COURT.

naturalized citizen A foreign-born person who attains citizenship by law. Also termed citizen by naturalization. 2. For diversity-jurisdiction purposes, a corporation that was incorporated within a state or has its principal place of business there. 28 USCA § 1332(c)(1).

navigable airspace The area above the legally established minimum flight altitudes, including the area needed to ensure safe takeoffs and landings of aircraft. 49 USCA § 40l02(a)(30).

navigable sea See NAVIGABLE SEA.

navigation easement 1. An easement giving the federal government the right to regulate navigable waters, even when the regulation interferes with private water rights. 2. See avigational easement.

navigation servitude 1. An easement allowing the federal government to regulate commerce on navigable water without having to pay compensation for interfering with private ownership rights. See NAVIGABLE WATER. The navigation servitude, because of its link to navigable waters and the protection of navigation, is often confused with the public trust doctrine. The navigation servitude, however, is a paramount federal servitude on navigable waters based on the commerce power rather than on ownership or trust responsibilities." Donna R. Christie, Coastal and Ocean Management Law in a Nutshell 34 (1994). 2. An easement, based on the state police power or publicrust doctrine, that allows a state to regulate commerce on navigable water and provide limited compensation for interference with private ownership rights. A state servitude is inferior to the federal servitude.

nearly closed-ended claim A patent claim that limits its scope to a list of elements but does not expressly exclude close analogues. The claim is typically introduced by a phrase such as consisting essentially of Cf. closed-ended claim; open-ended claim.

necessarily included offense See lesser included offense.

necessary damages See general damages.

necessary deposit A bailment, usu. made by reason of emergency or other necessity, that prevents the depositor from freely choosing the depositary. A necessary deposit occurs, for example, when a person entrusts goods to a stranger during a fire.

necessary diligence The diligence that a person is required to exercise to be legally protected.

necessary domicile A domicile lcgallyfixed and independent of choice, as in the domicile of origin. See domicile oforigin.

necessary implication An implication so strong in its probability that anything to the contrary would be unreasonable.

necessary improvement An improvement made to prevent the deterioration of property.

necessary intromission The intromission occurring when a spouse continues in possession of the deceased spouses goods, for preservation.

necessary party A party who, being closely connected to a lawsuit, should be included in the case if feasible, but whose absence will not require dismissal of the proceedings. See compulsory joinder under JOINDER. Cf. indispensable party.

necessity defense See JUSTIFICATION (2).

negative act The failure to do something that is legally required; a nonoccurrence that involves the breach of a legal duty to take positive action . This takes the form of either a forbearance or an omission. Also termed act ofomission.

negative amortization An increase in a loan's principal balance caused by monthly payments insufficient to pay accruing interest. 2. The act or result of apportioning the initial cost of a usu. intangible asset, such as a patent, over the asset's useful life. Cf. DEPRECIATION. Sometimes also termed amortizement.

negative averment An averment that is negative in form but affirmative in substance and that must be proved by the alleging party. An example is the statement "she was not old enough to enter into the contract," which is more than just a simple deniaL Cf. TRAVERSE.

negative cash flow A financial situation in which cash out flow exceeds cash inflow. See INSOLVENCY.

negative causation The defense that part of the plaintiff's damages were caused by factors other than the depreciation in value of the securities resulting from registration-statement defects . Ifnegative causation is proved, the plaintiff's damages should be reduced. 15 USCA § 77k(e).

negative condition A condition forbidding a party from doing a certain thing, such as prohibiting a tenant from subletting leased property; a promise not to do something, usu. as part of a larger agreement. See negative easement under EASEMENT. Also termed restrictive condition.

negative covenant A covenant that requires a party to refrain from doing something; esp., in a realestate financing transaction, the borrower's promise to the lender not to encumber Of transfer the real estate as long as the loan remains unpaid. Cf. affirmative covenant.

negative defense A defendant's outright denial of the plaintiffs allegations without additional facts pleaded by way of avoidance. Cf. affirmative defense.

negative disinheritance The act by which a testator attempts to exclude a person from inheritance without disposing of the property to another. Negative disinheritance is ineffective at common law, although today it may he permitted by statute.

negative duty A duty that forbids someone to do something; a duty that requires someone to abstain from something. Also termed passive duty.

negative easement An easement that prohibits the servient-estate owner from doing something, such as building an obstruction. Cf. affirmative easement. "Negative easements ... confer no right of entry, but consist essentially of the right to prevent something being easement done; examples are the right to the flow of air through defined aperture, the right to receive light for a building, the right to the support of a building, and (possibly) the right to require a neighbouring landowner to repair fences." Peter Butt, Land Law 305 (2d ed. 1988).

negative equity The difference between the value ofan asset and the outstanding amount of the loan secured by the asset when the asset's current value is less than the loan's balance. 8. An ownership interest in property, esp. in a business <the founders gave her equity in the business in return for all her help>. See OWNERS' EQUITY; BOOK EQUITY; MARKET EQUITY. 9. A share in a publicly traded company <he did not want to cash in his equity>.

negative evidence Evidence suggesting that an alleged fact does not exist, such as a witness's testifying that he or she did not see an event occur. Negative evidence is generally regarded as weaker than positive evidence because a positive assertion that a witness saw an event is a stronger statement than an assertion that a witness did not see it. But a negative assertion will sometimes be considered positive evidence, depending on the witness's opportunity to see the event. For instance, testimony that the witness watched the entire game and saw no riot in the stands is stronger than testimony stating only that the witness did not see a riot. - Also termed negative testimony. Cf. direct evidence (1).

negative externality An externality that is detrimental to another, such as water pollution created by a nearby factory.

negative plea A plea that traverses some material fact or facts stated in the bill. Also termed plea to the action.

negative proof Proof that establishes a fact by showing that its opposite is not or cannot be true. Cf. positive proof.

negative reprisal A reprisal by which a nation refuses to perform an obligation to another nation, such as the fulfillment of a treaty.

negative right A right entitling a person to have another refrain from doing an act that might harm the person entitled. Cf. positive right.

negative servitude A servitude appurtenant allowing a dominant landowner to prohibit the servient landowner from exercising a right. For example, a negative servitude, such as jus ne luminibus officiatur, prevents a landowner from building in a way that blocks light from reaching another persons house.

negative statute A law prohibiting something; a law expressed in negative terms. Cf. affirmative statute.

neglect hearing Family law. A judicial hearing involving alleged child abuse or some other situation in which a child has not been properly cared for by a parent or person legally responsible for the child's care. At issue is the civil culpability of the parent or responsible party and the possible loss of children into foster care or in extreme cases - the termination of parental rights.

neglected child 1. A child whose parents or legal custodians are unfit to care for him or her because of cruelty, immorality, or incapacity. 2. A child whose parents or legal custodians refuse to provide the necessary care and medical services for the child. Cf. deprived child.

negligent act An act that creates an unreasonable risk of harm to another.

negligent conversion See technical conversion.

negligent escape The offense committed by a peace officer who negligently allows a prisoner to depart from legal custody. "Escapes are either voluntary, or negligent. Voluntary are such as are by the express consent of the keeper, after which he never can retake his prisoner again, (though the plaintiff may retake him at any time) but the sheriff must answer for the debt. Negligent escapes are where the prisoner escapes without his keeper's knowledge or consent; and then upon fresh pursuit the defendant may be retaken, and the sheriff shall be excused, if he has him again before any action brought against himself for the escape." 3 William Blackstone, Commentaries on the Laws of England415-16 (1768).

negligent homicide Homicide resulting from the careless performance of a legal or illegal act in which the danger of death is apparent; the killing of a human being by criminal negligence. Also termed criminally negligent homicide. See criminal negligence under NEGLIGENCE. "There is no common-law offense known as 'negligent homicide. As a matter of the common law of crimes any killing below the grade of manslaughter is innocent homicide. Some of the new penal codes have a classification scheme which (omitting degrees or other variations) divides criminal homicide into murder, manslaughter and criminally negligent homicide or simply negligent homicide. For the most part, however, this has been achieved by removing from manslaughter the offense of homicide by criminal negligence and using this to constitute the newly named offense. Thus, though there are a few exceptions, most states will have no homicide offense which would be below common-law manslaughter." Rollin M. Perkins & Ronald N. Boyce, Criminal Law 116-17 (3d ed. 1982).

negligent offense A violation of law arising from a defective discharge of duty or from criminal negligence. See criminal negligence under NEGLIGENCE.

negotiable bill of lading A bill oflading calling for the delivery of goods to the bearer or to a named person's order. UCC § 7-104.

negotiable bond A bond that can be transferred from the original holder to another.

negotiable certificate of deposit A security issued by a financial institution as a short-term source of funds, usu. with a fixed interest rate and maturity of one year or less.

negotiable document of title A document of title that actually stands for the goods it covers, so that any transfer of the goods requires a surrender of the document. UCC § 7-104(1).

negotiable order of withdrawal account See NOW account.

negotiated agreement See NEGOTIATED AGREEMENT.

negotiated offering A securities offering in which the terms (including the underwriters compensation have been negotiated between the issuer and the underwriters.

negotiated plea The plea agreed to by a criminal defendant and the prosecutor in a plea bargain. See PLEA BARGAIN. Cf. blind plea.

negotiating bank A financial institution that discounts or purchases drafts drawn under a letter of credit issued by another bank.

negotiorum gestio (ni-goh-shee-or-am jes-chee-oh). See NEGOTIORUM GESTIO.

net assets See net worth under WORTH.

net book cost The cost of property when it was first acquired or devoted to pUblic use, minus accumulated depreciation. Also termed rate-base value.

net book value See OWNER'S EQUITY.

net cash flow Cash inflow minus cash out flow.

net cost The cost of an item, arrived at by subtracting any financial gain from the total cost.

net earnings See net income under INCOME.

net earnings- See net income under INCOME. normalized earnings. Corporations. Earnings adjusted for inflation and to remove elements that are extraordinary, nonrecurring, nonoperating, or otherwise unusual.

net estate See net probate estate under PROBATE ESTATE.

net income Total income from all sources minus deductions, exemptions, and other tax reductions. Income tax is computed on net income. - Also termed net earnings.

net investment 1. The net cash required to start a new project. 2. The gross investment in capital goods less capital consumption, including depreciation. 2. The asset acquired or the sum invested. 3. INVESTITURE (1). 4. LIVERY OF SEISIN.

net level annual premium A net premium that stays the same each year.

net operating income Income derived from operating a business, after subtracting operating costs.

net premium 1. Generally, the premium amount for an insurance policy less agent commissions. 2. The portion of the premium that covers the estimated cost of claims. 3. The money needed to provide benefits under an insurance policy. The net premium in a life-insurance policy is calculated by using an assumed interest and mortality-table rate; it does not include additional expense amounts that will be charged to the policy-holder. - Also termed net valuation premium.

net present value The present value of net cash flow from a project, discounted by the cost of capital. This value is used to evaluate the project s investment potential. Abbr. NPV.

net price The price ofsomething, after deducting cash discounts.

net probate estate The probate estate after the following deductions: (1) family allowances, (2) exempt property, (3) homestead allowances, (4) claims against the estate, and (5) taxes for which the estate is liable. - Also termed net estate. Cf. adjusted gross estate (1) under ESTATE (3).

net probate estate See PROBATE ESTATE.

net proceeds The amount received in a transaction minus the costs of the transaction (such as expenses and commissions). Also termed net balance.

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

net quick assets The excess of quick assets less current liabilities. See QUICK-ASSET RATIO.

net rent The rental price for property after payment of expenses, such as utilities, and taxes.

net rental The amount remaining after deducting all expenses from the gross rental income. 2. The income received from rent. 3. A record of payments received from rent. rental, adj.

net return The profit on an investment after deducting all investment expenses.

net sale The amount of money remaining from a sale, after deducting returns, allowances, rebates, discounts, and otber expenses.

net single premium The money that must be collected from a policyholder at one time to guarantee enough money to pay claims made on an insurance policy. This amount assumes that interest accrues at an expected rate and is based on a prediction of the likelihood of certain claims.

net valuation premium See net premium.

neutral property See NEUTRAL PROPERTY.

new acquisition An estate not originating from descent, devise, or gift from the paternal or maternal line of the owner. For example, an estate acquired from a nonrelative is a new acquisition. See nonancestral estate under ESTATE (1).

new asset Wills & estates. In the administration of a decedent's estate, property that the administrator or executor receives after the time has expired to file claims against the estate.

new assignment A plaintiff's restatement of a claim because the first complaint did not contain sufficient details. The purpose was to allow a plaintiff to reply to a defendant's responsive plea that did not address the plaintiff's specific claim because the complaint was too general. New aSSignment has been replaced by amended pleadings. - Also termed novel assignment. "A new assignment is a restatement in the replication of the plaintiff's cause of action. Where the declaration in an action is ambiguous and the defendant pleads facts which are literally an answer to it, but not to the real claim set up by the plaintiff, the plaintiff's course is to reply by way of new assignment; that is, to allege that he brought his action, not for the cause supposed by the defendant, but for some other cause, to which the plea has no appli· cation." Benjamin j. Shipman, Handbook of Common· Law Pleading § 214, at 370 (Henry Winthrop Ballantine ed., 3d ed.1923).

new business An item of business introduced from the floor or taken from the table without having been scheduled for consideration. See TAKE FROM THE TABLE.

new cause of action A claim not arising out of or relating to the conduct, occurrence, or transaction contained in the original pleading .An amended pleading often relates back to the date on which the original pleading was filed. Thus, a plaintiff may add claims to a suit without facing a statute-of-limitations bar, as long as the original pleading was timely filed. But if the amended pleading adds a claim that arises out of a different transaction or occurrence, or out of different alleged conduct, the amendment does not relate back to the date on which the original pleading was filed. Fed. R. Civ. P. 15(c". 3. Loosely, a lawsuit <there are four defendants in the pending cause of action>. - Abbr. COA.

new court commitment The confinement in prison ofa person who is being admitted on a new conviction that is, someone who is not being returned to prison for a parole violation.

new debtor Secured transactions. A person who becomes bound as debtor under a security agreement previously entered into by another person. uec §§ 9-102(a)(56), 9-203(c).

new drug A drug that experts have not recognized as safe and effective for use under the conditions prescribed. 21 USCA § 321(p)(l). The Food and Drug Administration must approve all new drugs before they can be marketed.

new issue A stock or bond sold by a corporation for the first time, often to raise working capital. See BLUE-SKY LAW.

new promise A previously unenforceable promise that a promisor revives and agrees to fulfill, as when a debtor agrees to pay a creditor an amount discharged in the debtor s bankruptcy.

New York interest See Boston interest.

newborn-kidnapping by cesarean section See kidnapping by cesarean.

newly discovered evidence Evidence existing at the time of a motion or trial but then unknown to a party, who, upon later discovering it, may assert it as grounds for reconsideration or a new trial. See Fed. R. Civ. P. 60(b).

new-matter rejectio Rejection of a patent claim on the ground that an amendment contains new matter.