Simple English definitions for legal terms
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A cap is a limit on how much money someone can earn, pay, or receive. For example, a loan may have a maximum interest rate, a business may set a cap on how much they charge loyal customers, and the government may limit the amount of assets someone can have to receive welfare benefits.
A cap is a limit set on something like income, interest, fees, loans, or benefits. It means that there is a maximum amount that can be earned, charged, borrowed, or received.
These examples illustrate how a cap works by setting a limit on something. It ensures that there is a maximum amount that can be earned, charged, borrowed, or received, which can be helpful in preventing excessive fees or benefits to those who do not qualify.