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defeasance

Pronunciation: [dɪˈfiːzəns]

Word

Learn how to use defeasance in a sentence: 6 audio examples across 2 meanings.

Context: “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.

Example

The contract included a defeasance clause that allowed the parties to cancel it if specific conditions were met.

Example

There was no defeasance in the agreement, so it couldn't be canceled easily.

Example

What happens to a contract when a defeasance is applied?

Context: “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.

Example

The company arranged for a defeasance of their bonds, ensuring they could secure the payments later.

Example

Without the proper planning for defeasance, the company risked defaulting on its loans.

Example

How does defeasance affect the company’s financial status?

How to pronounce defeasance

Pronunciation: [dɪˈfiːzəns]

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