Simple English definitions for legal terms
Read a random definition: partial assignment
The rule against perpetuities is a legal rule that limits the time that property can be held without an owner who has the right to sell or use it. The rule states that any interest in property must vest, or become effective, within 21 years after the death of a person who was alive when the interest was created. If the interest does not vest within this time, the gift or transaction is void. The purpose of the rule is to prevent property from being held out of commerce for too long.
Definition: The rule against perpetuities is a common-law rule that prohibits a grant of an estate unless the interest must vest, if at all, no later than 21 years (plus a period of gestation to cover a posthumous birth) after the death of some person alive when the interest was created. The purpose of the rule is to limit the time that title to property could be suspended out of commerce because there was no owner who had title to the property and who could sell it or exercise other aspects of ownership. If the terms of the contract or gift exceeded the time limits of the rule, the gift or transaction was void.
Examples:
These examples illustrate how the rule against perpetuities limits the time that title to property can be suspended out of commerce. In both cases, the terms of the gift exceed the time limits of the rule, making the gift or transaction void.