Forfeiture

Forfeiture – Forfeiture is the act of relinquishing an asset, property, or cash flow without compensation, usually as a consequence of violating contractual obligations or legal requirements. It serves as a corrective measure to enforce compliance and protect the interests of the affected party. Key Features: Results from non-compliance, breach of contract, or legal penalties. Involves loss of rights to assets, income, or benefits. Acts as a disciplinary or corrective mechanism in business, finance, and law. Can be applied to shares, deposits, property, or other financial assets.

Example: If a shareholder fails to pay the due call money on shares, the company may forfeit the shares, causing the shareholder to lose the amount already paid and the rights to the shares