Non-forfeitable describes something that cannot be taken away or lost, usually due to a breach of terms or conditions. It signifies a right, benefit, or asset that is secure and guaranteed. It's often used in legal and financial contexts to protect individuals or entities from losing something of value, even under adverse circumstances. This concept provides a sense of stability and assurance, indicating that the recipient of the non-forfeitable item retains control regardless of certain actions or events. Its protection adds a layer of security to investments, rights, or benefits.
Non-forfeitable meaning with examples
- The company established a non-forfeitable pension plan, guaranteeing employees would retain their accrued benefits even if they changed jobs. This assurance promoted employee loyalty and fostered a sense of financial security. The policy created a strong incentive for long-term employment, aligning employee interests with the company's success and securing a more stable workforce for the future.
- The lease agreement included a non-forfeitable right of first refusal, ensuring the tenant could purchase the property if the landlord decided to sell. This offered the tenant a significant advantage, potentially allowing them to secure a valuable asset at favorable terms and guaranteeing their place there.
- The scholarship offered to the student was non-forfeitable, provided they maintained good academic standing. This structure incentivized high performance and supported them with financial peace of mind during their studies, fostering their academic career without the worry of losing the award.
- The government program provided a non-forfeitable grant to support small businesses impacted by the economic downturn, and this grant provided a safety net for struggling companies. The grant created a sense of stability, empowering them to navigate challenges, and ultimately contribute to economic recovery.
- A life insurance policy contained a non-forfeitable clause guaranteeing a payout to the beneficiaries, regardless of any late premiums. This clause offered peace of mind to the policyholder and a secure financial future for their loved ones, and it ensured that the intended benefits would be delivered.