Legal Definitions - dation

Dation refers to the formal act of granting or bestowing something to an individual who already possesses a legal right or entitlement to receive it. It is not a gift or a favor, but rather the fulfillment of an existing legal obligation or the recognition of a pre-existing right.

Here are some examples to illustrate the concept of dation:

• Inheritance of Property: Imagine a situation where a deceased person's will clearly states that their beachfront vacation home is to be given to their eldest child. After the legal process of probate is complete, the formal transfer of the property deed to the eldest child is a dation. The child was legally entitled to the property by the will, and the transfer is the formal act of granting what was already rightfully theirs.
• Fulfillment of a Contractual Obligation: Consider a software development company that has completed a custom application for a client, fully meeting all specifications outlined in their contract. Upon verifying the completion, the client formally releases the final payment to the software company. This final payment is a dation because the software company, having fulfilled its contractual duties, was legally entitled to receive that payment.
• Grant of a Vested Pension: An employee works for a company for 25 years, meeting all the criteria for a fully vested pension plan. Upon their retirement, the company formally begins distributing their monthly pension payments. The act of providing these payments is a dation because the employee, by virtue of their service and the terms of the pension plan, had a pre-existing legal entitlement to receive those benefits.