Preference
/ˈprɛfərəns/
Definitions
- (n.) The right or priority granted to one creditor, claim, or interest over others in legal or financial contexts.
The secured creditor received preference over unsecured creditors during bankruptcy.
- (n.) A greater liking for one alternative over others in decision-making or choice.
The company showed a preference for local suppliers in their contracts.
Forms
- preferences
Related terms
Commentary
In legal contexts, "preference" often implies a hierarchy of claims or rights, especially in insolvency; clarity about the type of preference is essential in drafting.
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.