utility

Legal TerminologyLegal glossary term

Legal Definition

In a legal context, 'utility' refers to the right or power to use a specific resource, property, or service, often defined by contractual obligations or statutory authority. It denotes the benefit derived from an asset or service, which can be tangible (like energy) or intangible (like a legal right).

Plain-English Translation

Imagine 'utility' as the right to use something important, like the right to use electricity or the right to use a specific piece of land. In law, it means defining what is useful or valuable under a rule or contract.

Context in Contracts

It matters because it establishes the fundamental right to utilize a specific asset, such as a property right, a service benefit, or a legal entitlement necessary for the operation of a contract or statute.

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A contract defining the utility of a leased property.

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A statute defining the utility of water rights in a watershed.

Document context

How utility shows up in legal documents

What is it?

The legal term 'utility' refers to the benefit derived from an asset, service, or resource, often defined by contractual obligations or statutory authority. It signifies the right to use something essential or beneficial within a legal framework.

Why does it matter?

It matters because it establishes the fundamental right to utilize a specific asset, such as a property right, a service benefit, or a legal entitlement necessary for the operation of a contract or statute.

When does it matter?

Utility appears when discussing the rights granted by a contract, the benefits derived from an asset, or the essential services required under a regulatory framework.

Where is it usually seen?

It is usually seen in contracts defining resource allocation, property law, utility regulations (like water or energy), or statutes defining legal entitlements.

Who is affected?

The parties involved in litigation, contract disputes, and regulatory proceedings are affected by the definition of what constitutes a useful right or benefit under the governing rules.

How does it work?

In practice, it works by determining the scope of rights granted—what is legally allowed to use something, or what benefits are essential for a legal entity to function.

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Wikipedia

Utility

In economics, utility is a measure of a certain person's satisfaction from a certain state of the world. Over time, the term has been used with at least two meanings. In a normative context, utility refers to a goal or objective that we wish to maximize,...

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