Legal Definitions - close

The term "close" has several distinct meanings in legal and financial contexts, functioning as both a noun and a verb.

As a Noun:

• 1. A defined parcel of land: This refers to a specific area of land, often one that is enclosed or clearly demarcated by boundaries.
  • Example: "The property dispute arose when a neighbor built a fence that encroached upon the farmer's north close, a pasture historically used for grazing."

    Explanation: In this context, "close" refers to a specific, identifiable parcel of land belonging to the farmer, which was understood to have its own boundaries.

  • Example: "The ancient manor house was surrounded by several distinct closes, each serving a different agricultural purpose, like an orchard close and a hay close."

    Explanation: Here, "closes" denotes separate, defined sections of land within a larger estate, each with a particular use.

• 2. A legal interest or right in land: This meaning refers to a person's legal claim, ownership, or right to a particular piece of property, whether or not it is physically enclosed.
  • Example: "When the city acquired the vacant lot for a new park, it obtained a legal close, giving it full ownership and control over that specific piece of real estate."

    Explanation: This illustrates "close" as the legal right or ownership interest the city now possesses in the land, irrespective of any physical enclosure.

  • Example: "The will stipulated that the heir would inherit the family's close in the countryside, granting them all property rights to the ancestral land."

    Explanation: Here, "close" signifies the legal property rights and ownership interest in the land that is being passed down.

• 3. The final trading price of a security: In financial and business law, this refers to the last recorded price of a stock, bond, or other security at the end of a trading day on an exchange.
  • Example: "The attorney needed to determine the market's close for the company's shares on the day the trust was established to accurately value the assets."

    Explanation: This use of "close" refers to the specific final price of the stock at the conclusion of the trading day, which is crucial for legal valuations.

As a Verb:

• 1. To conclude or bring to an end: This means to finalize a process, investigation, discussion, or period.
  • Example: "After reviewing all the evidence, the prosecutor decided to close the investigation into the alleged fraud, as there was insufficient proof to proceed."

    Explanation: This demonstrates "close" as the act of terminating or concluding an official inquiry.

  • Example: "The judge announced that the court would close for the day after the final witness testified, resuming the trial the following morning."

    Explanation: Here, "close" refers to the act of ending the court's proceedings for a specific period.

• 2. To finalize an agreement or transaction: This refers to the act of completing a deal, often involving the signing of documents and the transfer of ownership or funds.
  • Example: "The buyers and sellers met with their attorneys to close on the new condominium, officially transferring ownership and exchanging funds."

    Explanation: This illustrates "close" as the final step in a real estate transaction, where all conditions are met, and the deal is completed.

  • Example: "The two corporations worked for months to negotiate the terms and finally managed to close their merger agreement, combining their operations into a single entity."

    Explanation: Here, "close" signifies the successful finalization of a complex business deal, bringing the negotiations to a definitive conclusion.