Disaffirmance

AAA

DEFINITION of 'Disaffirmance'

The right to renounce a contract and thereby void any legal obligations resulting from the contract. To void the contract, the person must indicate he or she will not be bound by the contract. This can be explicitly expressed by the person in a declaration, or implied when the person performs an act that indicates he will not abide by the terms of the contract.

INVESTOPEDIA EXPLAINS 'Disaffirmance'

Disaffirmance occurs when a voidable contractual obligation is renounced. Minors or, in some cases, persons who can prove they lacked the capacity to enter a legally binding contract - intoxication, mental incompetence etc. - can disaffirm a contract and therefore avoid all legal obligations set forth in the contract.

RELATED TERMS
  1. Exculpatory Clause

    A contract provision that relieves one party of liability if ...
  2. Nonfeasance

    Failing to execute or perform an act or duty required by position/office ...
  3. Malfeasance

    Used in regards to performance on a contract, malfeasance is ...
  4. Breach Of Contract

    Violation of any of the agreed-upon terms and conditions of a ...
  5. Failure To Deliver

    An outcome in a transaction where one of the counterparties in ...
  6. Anticipatory Breach

    In contract law, an action that shows a party's intention to ...
Related Articles
  1. Personal Finance

    How To Pick The Right Lawyer

    Find out what factors to consider before hiring an attorney.
  2. Credit & Loans

    How To Read Loan And Credit Card Agreements

    The devil is always in the details! Find out what you're signing yourself up for.
  3. Options & Futures

    Variable Prepaid Forward Contract: Scam Or Safety Net?

    Top executives can benefit from this kind of contract, but is it at the expense of the shareholders?
  4. Taxes

    Designating A Minor As An IRA Beneficiary

    Leaving liquid assets like cash or securities to minors can be a complicated procedure. Make sure you understand how your gift will be distributed, managed and taxed.
  5. Retirement

    Be Your Own Boss By Freelancing

    Learn the pros and cons before you bid adieu to sales meetings and power suits forever.
  6. Watch for these signs that you or an elderly family member may need to downsize and move somewhere easier to manange. A senior move manager can help.
    Retirement

    Time To Hire A Senior Move Manager?

    Watch for these signs that you or an elderly family member may need to downsize and move somewhere easier to manange. A senior move manager can help.
  7. As Americans age – and families try to cope – the new field of senior move managers helps seniors relocate to safer homes with the least possible stress.
    Retirement

    A New Solution To Help Seniors Relocate

    As Americans age – and families try to cope – the new field of senior move managers helps seniors relocate to safer homes with the least possible stress.
  8. ISDA Master Agreement
    Investing Basics

    ISDA Master Agreement

    The ISDA Master Agreement is a document outlining the terms of an over-the-counter derivatives transaction between two parties. This document serves as a standard agreement in these transactions ...
  9. Budgeting

    4 Contract Essentials You Need to Know

    Over your lifetime, you’ll be asked to sign lots of contracts – perhaps agreeing to purchase a home, a car or to join a new gym or online dating service.
  10. Home Sale Contingencies: What Buyers And Sellers Need To Know
    Home & Auto

    Home Sale Contingencies: What Buyers And Sellers Need To Know

    Home sale contingencies protect buyers who want to sell one home before purchasing another. Find out what buyers and sellers need to know about these contractual conditions.

You May Also Like

Hot Definitions
  1. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
  2. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  3. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  4. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  5. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  6. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
Trading Center