What is meant by the term "Cause of Action"?

The term "Cause of Action" refers specifically to the legal basis or situation that gives rise to a lawsuit. It encompasses the circumstances that compel an individual or entity to seek remedy through the court system. For example, if someone suffers damage due to another's negligence, that scenario would constitute a cause of action, allowing the injured party to file a lawsuit for compensation.

In the context of legal terminology, having a valid cause of action means that there are sufficient facts to justify the claim, which aligns closely with why this answer is appropriate. Understanding a cause of action is crucial for legal professionals, as it outlines the framework under which legal claims are made.