Legal Definitions - lot

A lot is a piece of land that has specific boundaries or is used for a particular purpose. For example, a minimum lot is the smallest piece of land allowed by local zoning laws. A nonconforming lot is a piece of land that was previously lawful but now violates a newly adopted or amended zoning ordinance.

Lot can also refer to an article that is the subject of a separate sale, lease, or delivery, even if it is not enough to fulfill the contract. For instance, in trading, a lot is a specific number of shares or a particular quantity of a commodity designated for trading. An odd lot is a number of shares or bond value that is less than a round lot. A round lot is the established unit of trading for stocks and bonds, usually 100 shares or $1,000 or $5,000 par value for bonds.

Examples:

• A developer bought a lot to build a new housing development.
• The city's zoning laws require a minimum lot size of 5,000 square feet.
• John inherited a nonconforming lot from his grandfather, which he cannot develop due to new zoning regulations.
• The company purchased a lot of 1,000 units of a particular commodity for trading.
• Emily bought an odd lot of 75 shares of a company's stock.
• The stock exchange requires a round lot of 100 shares for trading.

These examples illustrate how the term "lot" can refer to a piece of land, a specific quantity of a commodity, or a unit of trading for stocks and bonds.