Misfeasance

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.

Investopedia explains '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.


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