Cessation of Trade

/ˌsɛsˈeɪʃən əv treɪd/

Definitions

  1. (n.) The permanent or temporary discontinuation of business activities by a trader or company.
    The cessation of trade prompted creditors to initiate insolvency proceedings.
  2. (n.) A formal condition in contracts or statutes signifying the end of trading rights or licenses.
    The contract included a clause for automatic cessation of trade upon default.

Forms

  • cessation of trade
  • cessations of trade

Commentary

Often appears in insolvency and commercial law contexts; precise definition may vary by jurisdiction and purpose (e.g., statutory vs contractual).

This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.

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