DEFEASANCES Meaning and
Definition
-
Defeasances refer to legal agreements or provisions within a contract that outline certain conditions or contingencies which, if met, can render the contract void or nullified altogether. These provisions are often included to provide a sense of security or protection to one or both parties involved in the contract. Defeasances are commonly utilized in various legal scenarios, such as mortgages or lease agreements, to ensure that specific conditions must be met before any obligations or liabilities stated within the contract can be terminated.
In the context of mortgages, defeasances involve the transfer of a property's legal title to a third-party trustee upon completion of specific conditions, typically related to the fulfillment of financial obligations. This is done by executing a trust agreement and creating a trust fund with sufficient assets to cover the debt. Once the borrower satisfies the requirements outlined in the defeasance agreement, such as making the complete loan payment, the trustee releases the legal title, and the mortgage is considered discharged.
Moreover, defeasances can also be utilized in lease agreements where either party, the landlord or tenant, seeks a mechanism to terminate the contract under certain conditions. These conditions may include non-payment of rent, breach of terms, or specific trigger events outlined within the lease agreement. The purpose of defeasances in lease agreements is to provide a means for legally exiting or terminating the contract in case of non-compliance by either party.
Overall, defeasances serve as a protective mechanism in legal contracts, establishing specific conditions that, if met, can result in the voiding or annulment of the agreement, providing a sense of security and recourse to the involved parties.
Common Misspellings for DEFEASANCES
- defeasankes
- defeasanges
- defeasanaes
- defeasanbes
- defeasancus
- defeasancms
- defeasancas
- defeasancgs
- defeasanceq
- d efeasances
- de feasances
- def easances
- defe asances
- defea sances
- defeas ances
- defeasa nces
- defeasan ces
- defeasanc es
- defeasance s
Etymology of DEFEASANCES
The word "defeasances" is derived from the Old French term "defaisance", which comes from the verb "defaire" meaning "to undo" or "to annul". It ultimately traces back to the Latin word "defetiscere", which combines "de", meaning "down" or "away", and "etiscere", meaning "to be weary" or "to lose strength". In a legal context, a defeasance refers to a condition or clause that can nullify or terminate an agreement or contract.
