Malfeasance

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DEFINITION of 'Malfeasance'

Used in regards to performance on a contract, malfeasance is an act of outright sabotage in which one party to the contract commits an act which causes intentional damage. A party that incurs damages by malfeasance is entitled to settlement through a civil law suit.

INVESTOPEDIA EXPLAINS 'Malfeasance'

Proving malfeasance in the court of law is often difficult, as the true definition is rarely agreed upon. All courts agree that the concept has to do with wrongful doing, however, defining wrongful doing and proving intent are often difficult to do.

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