Legal Definitions - forestall

Forestall refers to the act of preventing or hindering something from happening or developing. Historically, in a legal context, it specifically referred to an illegal practice of interfering with free markets.

• General Meaning: To Prevent or Hinder

  In its most common usage today, to forestall means to take action in advance to prevent an event, outcome, or situation from occurring or to delay its progress.

  • Example 1: Business Strategy

    A technology company might release a new, advanced feature for its software ahead of schedule to forestall a competitor from gaining a significant market advantage with their own upcoming product launch. By acting proactively, the company aims to prevent the competitor from dominating the market segment.

  • Example 2: Legal Maneuver

    During a complex negotiation, a lawyer might present a strong legal argument early in the discussions to forestall the opposing party from making unreasonable demands later on. This preemptive move aims to prevent the negotiation from veering into unproductive territory.

• Historical Legal Meaning: Forestalling the Market

  At common law, "forestalling the market" was a specific offense involving the interception of goods on their way to market, or buying them before they reached the public market, with the intention of reselling them at a higher price. This practice was considered illegal because it interfered with the natural flow of trade, artificially inflated prices, and deprived the public of fair access to goods.

  • Example: Agricultural Goods

    Centuries ago, if a merchant traveled to a farming village and bought up all the wheat from local farmers before it could be brought to the town's public market, intending to sell it at a much higher price to the townspeople, they would be guilty of forestalling. This action prevented the wheat from reaching the open market at a competitive price, thereby harming consumers and disrupting fair trade.