Defeasible

Defeasible describes something that can be annulled, revoked, or rendered void under specific conditions. It implies a situation where a right, claim, or agreement can be terminated or modified based on the occurrence or non-occurrence of a future event or the fulfillment of specific requirements. This concept is commonly used in legal and contractual contexts, highlighting the conditional nature of an agreement. It signifies that an initial arrangement isn't absolute and may be altered or invalidated depending on how circumstances unfold. This conditional aspect adds a layer of complexity and often requires careful planning and consideration of potential contingencies.

Defeasible meaning with examples

• The property rights were defeasible; ownership reverted to the original owner if the land wasn't used for agricultural purposes within five years. This defeasible clause protected the grantor's intentions and ensured the land's specific utilization. The buyer understood this condition, knowing their ownership wasn't absolute and could be lost under certain scenarios.
• The loan agreement included a defeasible clause, meaning the lender could recall the loan if the borrower breached any financial covenants. This defeasibility protected the lender's investment, providing an avenue to mitigate risks. The borrower's actions directly impacted the loan's status.
• The grant of a scholarship was defeasible. A student’s failure to maintain a specific GPA led to the scholarship's revocation. The scholarship's conditions were clear, and non-compliance directly affected its validity. The defeasibility built in an academic performance requirement.
• The contract clause stipulated that the agreement was defeasible if one party failed to meet agreed-upon delivery deadlines. This defeasibility served as a mechanism to enforce contract terms. The failure to meet those deadlines directly impacted the contract's continuation.