Legal Definitions - resolutory

Resolutory

The term resolutory describes something that has the power or effect of ending, canceling, or dissolving an agreement, contract, or legal status.

Here are some examples:

• Example 1: A contract for a custom software development project might include a resolutory clause stating that if the developer fails to deliver a functional prototype by a specific deadline, the contract is automatically terminated, and the client is no longer obligated to make further payments.

  Explanation: In this scenario, the developer's failure to meet the prototype deadline acts as the resolutory event, causing the contract to dissolve without requiring additional legal action from either party.

• Example 2: A commercial lease agreement could contain a resolutory condition specifying that if the tenant fails to maintain adequate insurance coverage for the premises as required, the lease is immediately dissolved, allowing the landlord to reclaim the property.

  Explanation: The tenant's failure to uphold the insurance requirement is the resolutory factor that automatically terminates the lease agreement and their right to occupy the property.

• Example 3: A will might include a resolutory condition for a specific inheritance, stating that a sum of money bequeathed to a beneficiary is automatically revoked if that beneficiary initiates a legal challenge against the will's validity.

  Explanation: The act of the beneficiary contesting the will serves as the resolutory action that annuls their right to receive that particular inheritance.