defeasance

defeasance Definition

de·fea·sance (dē fē′zəns, di-)

noun

the annulment of a contract or deed
a clause stating a condition the fulfillment of which makes the deed, contract, etc. void in whole or in part

Etymology: ME & Anglo-Fr defesaunce < OFr defesance < defesant, prp. of defaire, desfaire: see defeat

defeasance Finance Definition

The ability of a debtor to offset a liability by purchasing government securities or a specialized risk management contract.
Voiding a contract or deed because a certain prohibited action has occurred.

defeasance Law Definition

The abrogation of an interest in real property.

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