nonrevocability

Nonrevocability is the quality or state of being non-revocable, meaning incapable of being withdrawn, canceled, or rescinded by the party who created or controls it. It contrasts with revocability, in which the holder may revoke or terminate the instrument or obligation, subject to any stated terms or governing law. The term is used across legal and financial contexts to describe arrangements that are intended to be binding and not easily undone by the original party.

Common contexts include irrevocable offers in contract law, irrevocable trusts in estate planning, and features in insurance policies or bank instruments such as letters of credit. In each case, nonrevocability restricts unilateral withdrawal or modification by the initiator. For example, an irrevocable trust generally cannot be revoked or substantially modified by the grantor, except under the terms of the trust or with the consent of beneficiaries or a court; an irrevocable offer binds the offeror to keep the offer open for a specified period; and an irrevocable letter of credit cannot be amended or canceled without the agreement of all parties involved.

Limitations and nuances: nonrevocability is not absolute. Some arrangements permit modification or termination by agreement of all beneficiaries, by statutory procedures, or in response to fraud, misrepresentation, or material breach. In many jurisdictions, nonrevocable instruments offer security to beneficiaries or counterparties but reduce flexibility for the creator.

See also: irrevocability, revocation, irrevocable trust, irrevocable offer, letter of credit.