Legal Definitions - forfeit

To forfeit means to involuntarily lose something valuable—such as a right, a privilege, or property—without receiving any payment or compensation in return. This loss occurs as a direct consequence of failing to meet a legal requirement, breaking a rule or law, or not fulfilling a contractual agreement or duty.

Here are some examples to illustrate this concept:

• Imagine a person places a substantial deposit on a new car, with a written agreement stating that the deposit will be forfeited if they do not complete the purchase within 30 days. If the buyer fails to secure financing or simply changes their mind and doesn't buy the car by the deadline, they would forfeit their deposit. This means they lose the money they put down without getting the car or any compensation for the lost deposit.

  This example demonstrates forfeiting property (the deposit money) due to a failure to perform a contractual obligation.

• Consider a professional athlete who signs a contract with a team that includes a clause stating they will forfeit a portion of their salary if they fail a drug test. If the athlete tests positive for a prohibited substance, they would lose that agreed-upon part of their earnings. The team would not pay them that amount, and the athlete would receive no compensation for that lost income.

  Here, the athlete forfeits a right (to receive their full salary) as a consequence of breaching a contractual condition related to their conduct.

• A property owner might have their land seized by the government if it is proven to have been used extensively for illegal activities, such as operating a large-scale illicit drug manufacturing operation. Under certain laws, the government can initiate a process where the owner would forfeit the property, meaning they lose ownership of the land and any structures on it without receiving compensation, as a direct result of its involvement in criminal acts.

  This illustrates the forfeiture of property as a consequence of violating the law.