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Hearsay refers specifically to an out-of-court statement that is presented as evidence in a legal proceeding to prove the truth of the matter asserted in that statement. This means that the statement itself is not made under oath in the courtroom and is typically not subject to cross-examination. The fundamental reason hearsay is often inadmissible in court is due to concerns regarding its reliability; since the person who made the statement is not present to testify about it, the court cannot assess their credibility or the context in which the statement was made.

In the context of this question, understanding hearsay is essential for anyone involved in legal processes, as it impacts the admissibility of evidence. Statements made in court hold greater evidentiary value because they are made under oath and can be challenged directly. Consequently, while testimonial evidence and the legal definitions of crimes do play significant roles in legal proceedings, they do not encapsulate the essence of hearsay as it is understood in legal terms.