DEFINITION of 'Misfeasance'

With regards to performance on a contract, misfeasance is engaging in a proper action or duty, but failing to perform the duty correctly. Misfeasance often occurs in the business world when management does not comply with rules and procedures, not out of intent to harm, but to perhaps create a shortcut. Management may do this because they believe it is helping the company, but it could result in negative consequences in the future.

BREAKING DOWN 'Misfeasance'

Malfeasance refers to the perpitrator purposefully not fulfilling the duties of their contract, but it often occurs when the negligence is unknowingly perpetrated. An example of misfeasance could include a public official hiring his or her sister without realizing that it would be against the law to hire a family member.

RELATED TERMS
  1. Nonfeasance

    Failing to execute or perform an act or duty required by position/office ...
  2. Import Duty

    A tax collected on imports and some exports by the customs authorities ...
  3. Duty

    1. A tax levied on certain goods, services or transactions. Duties ...
  4. Duty Free

    Goods that international travelers can purchase without paying ...
  5. Unilateral Contract

    A legally enforceable promise - between legally competent parties ...
  6. Rules Of Fair Practice

    A set of rules and regulations developed by the National Association ...
Related Articles
  1. Investing

    What are the fiduciary responsibilities of board members?

    Find out what fiduciary duties a board of directors owes to the company and its shareholders, including the duties of care, good faith and loyalty.
  2. Investing

    What is an Anti-Dumping Duty?

    An anti-dumping duty is a large tariff a government imposes on importers who price their goods below fair market value.
  3. Investing

    What does DDP Mean?

    Delivery duty paid (DDP) is a shipping term specifying that the seller is responsible for all costs associated with delivery of the goods to the buyer. It is usually used when goods are exported ...
  4. Investing

    Understanding Delivery Duty Unpaid (DDU)

    Delivery duty unpaid (DDU) is a legal and international shipping term.
  5. Small Business

    Are You Trying To Get Sued?!

    Organizational lawsuits are commonplace these days. Knowing how to react to and (more importantly) prevent them can save your business.
  6. Small Business

    Has Nepotism Ever Worked?

    It may very well be that hiring a relative is the right course of action for you. But before you do, carefully consider how hiring family could hurt your business.
  7. Financial Advisor

    The Upside of a Client Service Associate Career

    Client service associates play a vital role in the financial industry. Here's the lowdown on this position and what it can offer.
  8. Small Business

    Risks Associated With Government Contracts

    Government contracts can be rewarding, but they also come with a variety of risks.
  9. Managing Wealth

    Accounting Research Manager: Job Description & Average Salary

    Learn about the average salary of an accounting research manager as well as the necessary skills, experience and education, and licenses to hold this position.
  10. Taxes

    Tax Variations Of The HEART Act

    The HEART Act is designed to allow service members and reservists make a smooth financial transition into active duty and back into civilian life.
RELATED FAQS
  1. Why is fiduciary duty so important?

    Find out why fiduciary duty is so important, including what this legal obligation entails and an example of how it can affect ... Read Answer >>
  2. Why do financial advisors have a fiduciary responsibility?

    Find out why financial advisors have a fiduciary duty to their clients, including what fiduciary duty entails and an example ... Read Answer >>
  3. What are the main communication points between a CFO and a CEO?

    Explore key communication points between CEOs and CFOs. Learn how each of these officers has a fiduciary duty to stockholders, ... Read Answer >>
  4. What does a Chief Financial Officer (CFO) do?

    If you asked any company's CFO this question, you would probably be in for a three-hour conversation. But the core duties ... Read Answer >>
  5. What are the legal regulations on delivery duty paid?

    Understand the legal requirements for delivery duty paid, as well as how responsibilities can shift between buyers and sellers ... Read Answer >>
  6. What are some examples of fiduciary duty?

    Understand what it means to be a fiduciary, under what circumstances fiduciary duties arise and some common examples of fiduciary ... Read Answer >>
Hot Definitions
  1. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  2. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  3. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  4. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  5. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  6. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
Trading Center