Legal Definitions - reserve

To reserve means to hold back or set aside something—such as a right, a portion of property, or a fund of money—for a specific future purpose or for one's own continued use, even when transferring other assets or making other commitments.

Here are some examples illustrating the concept of reserving:

• Real Estate Rights: Imagine a homeowner selling a large piece of land to a developer. During the sale, the homeowner might include a clause stating that they reserve a perpetual easement (a right of way) across a specific part of the sold land to access a small, landlocked parcel they plan to keep. This means even though the developer now owns the land, the original homeowner retains the specific right to use that path.

  This illustrates "reserve" because the homeowner is explicitly holding back a specific right (the easement) for their own future use, even as they transfer ownership of the larger property to the developer.

• Financial Provisions: A large manufacturing company might anticipate potential costs for environmental cleanup related to its older factories. To prepare for these future obligations, the company's accounting department will reserve a significant portion of its annual profits by setting it aside in a dedicated fund. This money is then earmarked specifically for future environmental remediation expenses.

  This demonstrates "reserve" as the company is setting aside a fund of money for a specific future liability, ensuring those resources are available when needed rather than being used for other purposes.

• Contractual Rights: When you purchase a ticket for an event, the ticket or the venue's terms and conditions often state, "The organizer reserves the right to change the program or refuse admission." This means that even after you've bought a ticket, the organizer retains the power to make alterations or deny entry under certain circumstances, such as disruptive behavior.

  Here, "reserve" means the organizer is holding back a specific right or power for themselves, allowing them to exercise it in the future despite the general agreement to provide access upon ticket purchase.