Legal Definitions - point

In legal and financial contexts, the term "point" has several distinct meanings:

• 1. A Specific Legal Argument or Issue

  In legal proceedings, a "point" refers to a distinct and pertinent legal argument, proposition, or issue that a party presents to a court or tribunal. It represents a key contention or a specific legal question that needs to be addressed or decided.

  • Example 1: During an appeal, the defense attorney filed a brief arguing a "point of error," contending that the trial judge incorrectly instructed the jury on a crucial element of the law.

    Explanation: Here, "point of error" refers to a specific legal argument or mistake that the defense believes the lower court made, which they want the appellate court to review and potentially overturn.

  • Example 2: In a contract dispute, the plaintiff's lawyer emphasized the "point" that the defendant had clearly breached the agreement by failing to deliver goods on the specified date.

    Explanation: This illustrates a specific legal argument (breach of contract) that the plaintiff's lawyer is making to support their case.

• 2. A Formal Request in Parliamentary Procedure

  In meetings governed by parliamentary rules (like those of a legislative body, committee, or association), a "point" is a formal request or question raised by a member to address an issue related to the rules, procedure, or to seek information about a motion.

  • Point of Clarification: A question seeking to understand a procedure or the substance of a proposal.
    • Example: During a school board meeting, a board member raised a "point of clarification" to ask if the proposed policy change would apply to all grade levels or just elementary schools.

      Explanation: This is a question aimed at understanding the specific scope (substance) of the proposed policy.

  • Point of Information: An inquiry to obtain factual information or an expert opinion relevant to a motion being discussed.
    • Example: Before voting on a resolution to purchase new equipment, a committee member asked for a "point of information" to inquire about the projected maintenance costs for the first five years.

      Explanation: This is a request for objective, factual data pertinent to the financial implications of the motion.

  • Point of Order: A statement drawing the chair's attention to a perceived violation of the rules of procedure or decorum during a meeting.
    • Example: When a speaker began discussing a topic unrelated to the current agenda item, another member interjected with a "point of order," reminding the chair that the discussion was straying from the approved topic.

      Explanation: This highlights a breach of the established meeting rules and asks the chair to enforce them.

  • Point of Privilege: A motion or request concerning the rights, comfort, or ability of a member or the assembly to function effectively.
    • Example: A delegate at a large convention raised a "point of privilege" because the sound system was malfunctioning, making it impossible for those in the back of the hall to hear the proceedings.

      Explanation: This addresses an issue (inability to hear) that affects the ability of members to participate effectively in the meeting.

• 3. A Percentage-Based Fee in Lending

  In finance, particularly with loans like mortgages, a "point" represents one percent (1%) of the total loan amount. These are typically paid upfront by the borrower to the lender as a service charge or to reduce the interest rate.

  • Example 1: A couple secured a $400,000 mortgage for their new home and paid two "points" as an origination fee to the lender.

    Explanation: This means they paid 2% of $400,000, which is $8,000, upfront to cover the lender's costs for processing the loan.

  • Example 2: To obtain a lower interest rate on their new business loan, a small business owner opted to pay one "point" upfront, effectively "buying down" the rate.

    Explanation: The owner paid 1% of the loan amount as a fee in exchange for a reduced interest rate over the life of the loan.

• 4. A Unit for Quoting Market Prices

  In financial markets, a "point" is a unit used to quote changes in the price of stocks, bonds, or commodities. The specific monetary value of a point can vary depending on the asset being traded.

  • Example 1: Following a positive economic report, the stock market index closed up 150 "points" for the day.

    Explanation: This indicates a significant overall increase in the value of the stocks represented by the index, measured in these standard units.

  • Example 2: A particular corporate bond's value fell by a quarter of a "point" after news of the company's downgraded credit rating.

    Explanation: This shows a decrease in the bond's price, expressed in points, which for bonds often represents a percentage of its face value.