HopefullyInLawSchool
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Simple English definitions for legal terms
lapping
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A quick definition of lapping:
Definition: Lapping is when an employee takes money from one customer's account and uses another customer's payment to cover it up. They keep doing this with more customers' payments to hide the theft. It's like a game of musical chairs with money, but it's illegal and dishonest.
Definition: Lapse means that something ends or goes away because someone didn't do what they were supposed to do or because something unexpected happened. For example, if you don't use a coupon before it expires, it will lapse and you won't be able to use it anymore. In a will, if someone who was supposed to get a gift dies before the person who wrote the will, the gift might lapse and go to someone else instead.
A more thorough explanation:
Lapping is a type of embezzlement where an employee takes money from one customer's account and uses another customer's payment to cover it up. This process is repeated with multiple customers to hide the theft.
- An employee takes $100 from Customer A's account and uses $50 from Customer B's payment to cover it up. Then, they take $50 from Customer C's payment to cover the remaining amount owed to Customer A.
- Another employee takes $500 from Customer X's account and uses $200 from Customer Y's payment to cover it up. Then, they take $300 from Customer Z's payment to cover the remaining amount owed to Customer X.
These examples illustrate how lapping works. The employee takes money from one customer's account and uses another customer's payment to cover it up. This process is repeated with multiple customers to hide the theft.
Lapse refers to the termination of a right or privilege due to a failure to exercise it within a time limit or because of a contingency that has occurred or not occurred. In the context of wills and estates, it can also refer to the failure of a testamentary gift when the beneficiary dies before the testator dies.
- If a person fails to renew their driver's license before the expiration date, their license will lapse, and they will no longer have the privilege to drive legally.
- If a person fails to pay their insurance premium on time, their policy may lapse, and they will no longer have coverage.
- If a person leaves a gift to their friend in their will, but the friend dies before the testator dies, the gift will lapse, and the friend's heirs will not receive it.
These examples illustrate how lapse works. If a person fails to meet certain conditions or deadlines, they may lose their right or privilege, or a gift may not be fulfilled.