15:30
fucking seriously dude we're readinf 1l of a ride
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LSDefine
Simple English definitions for legal terms
forfeiture clause
Read a random definition: structured security
A quick definition of forfeiture clause:
A forfeiture clause is a part of a contract that says if something specific happens, one person has to give up something to the other person. This type of clause is sometimes not allowed, but it's kind of like rules for owning land. Another name for a forfeiture clause is a no-contest clause.
A more thorough explanation:
A forfeiture clause is a provision in a contract that states that one party may have to give up something to the other party under certain circumstances. This clause is similar to conditions and other qualifications of estates in land, but it is often considered void.
Let's say you rent a car for a week, and the rental agreement includes a forfeiture clause. The clause states that if you return the car with any damage, you will forfeit your security deposit. If you return the car with a scratch on the bumper, the rental company can keep your deposit.
Another example is a forfeiture clause in a real estate contract. The clause may state that if the buyer fails to make a payment on time, they will forfeit their right to the property and any money they have already paid towards it.
These examples illustrate how a forfeiture clause can be used to protect one party's interests in a contract. However, it is important to note that forfeiture clauses may not always be enforceable, and they should be carefully reviewed before agreeing to them.