Forfeiture Clause
/ˈfɔːrfɪtʃər klɔːz/
Definitions
- (n.) A contractual provision that causes a party to lose rights or property upon breach or failure to fulfill specified conditions.
The forfeiture clause in the lease allowed the landlord to reclaim the property if rent was unpaid for two months.
Forms
- forfeiture clauses
Related terms
See also
Commentary
Forfeiture clauses are common in contracts to deter breach by threatening loss of rights or property; careful drafting ensures enforceability and avoids being construed as a penalty.
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.