Defeasance

Part of speech: noun

Definitions

1. The cancellation of a legal deed, bond, or debt obligation once a specified condition has been satisfied
2. A legal provision under which an agreement or mortgage becomes void after the stated requirement is fulfilled
3. The nullifying of a contractual commitment or security interest upon completion of an agreed-upon condition

Etymology: "Defeasance" is a legal term meaning the annulling or voiding of a deed or obligation once a specified condition is met. It comes from Anglo-Norman "defeasaunce", a noun built on the Old French verb "defaire", meaning to undo, which is itself the source of the English "defeat". The original idea is therefore one of undoing: a contract that was made to be unmade if a particular event occurs. The word's meaning follows that legal logic closely. A mortgage, for instance, might be made void, or "defeated", once the borrower repays the debt in full. The sense of undoing is preserved in the term's modern uses, where a defeasance clause or a defeasance arrangement releases a property or obligation from its earlier commitments.

Synonyms: annulment, nullification, abrogation

Antonyms: confirmation, ratification