lilypadfrog
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LSDefine
Simple English definitions for legal terms
reserve
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A quick definition of reserve:
Reserve: When you give something to someone else, but you still want to keep a part of it for yourself, that's called reserving. For example, if you sell a piece of land to someone, but you want to keep a small part of it for yourself, you can reserve that part. Reserve can also mean setting aside something for later use, like money that a bank or insurance company saves to pay for things in the future.
A more thorough explanation:
Reserve means to keep a right or a part of a property for oneself while transferring the rest to someone else.
It can also refer to something that is kept aside for future use, like a fund of money that a bank or an insurance company sets aside to cover future expenses.
Example 1: When selling a piece of land, the owner may reserve the right to use a small portion of it for personal use, like a garden or a driveway.
Example 2: A bank may have a reserve fund to cover unexpected losses or expenses.
Example 3: An insurance company may have a reserve fund to cover future claims from policyholders.
These examples illustrate how reserve can refer to both a legal right to keep a portion of a property and a financial practice of setting aside funds for future use.