Forfeits

Forfeiture is the loss or surrender of a right, property, or claim as a consequence of breach, non-performance, or illegality. It arises when rules authorize or require that a party at fault give up rights or assets, sometimes automatically and sometimes by judicial or administrative decision.

In contract and property law, forfeiture clauses permit terminating a deal or seizing a security deposit if a party fails to perform. They can apply to leases, licenses, or purchase agreements. Forfeiture is distinct from liquidated damages, which estimate losses, whereas forfeiture involves the actual loss of property or rights.

In sports, a forfeit (or default) is an automatic loss awarded when a participant cannot compete or fails to appear. The opponent typically receives a win by default, with the match recorded according to sport-specific rules. Forfeits may stem from injury, disqualification, or other rule violations.

In law and government, forfeiture may be civil or criminal. Civil forfeiture allows seizure of property linked to crime or proceeds of wrongdoing, often without a criminal conviction. Criminal forfeiture accompanies a conviction and transfers ownership to the state. Both forms are subject to procedural protections and ongoing debate.

Enforcement generally requires notice and an opportunity to contest, and may involve hearings or appeals. Exemptions can apply for legitimate ownership or exempt property. Critics argue forfeiture can be overbroad or abused; supporters say it helps deter crime and remove illicit gains.