defeasance
Pronunciación: [dɪˈfiːzəns]
Palabra
Contexto: «law»
(noun) defeasance is a legal term that means to undo or cancel something that was created before, often a contract or a debt. It's like saying an agreement can be erased or made invalid under certain conditions.
Ejemplo
The contract included a defeasance clause that allowed the parties to cancel it if specific conditions were met.
Ejemplo
There was no defeasance in the agreement, so it couldn't be canceled easily.
Ejemplo
What happens to a contract when a defeasance is applied?
Contexto: «finance»
(noun) in finance, defeasance refers to a situation where a borrower sets aside money to pay off debt in the future, which means the debt can be considered paid off even if it isn't cleared yet.
Ejemplo
The company arranged for a defeasance of their bonds, ensuring they could secure the payments later.
Ejemplo
Without the proper planning for defeasance, the company risked defaulting on its loans.
Ejemplo
How does defeasance affect the company’s financial status?
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