Abandonment

Abandonment,

Definition of Abandonment:

  1. Insurance: Right of the owner of an insured property to abandon it (1) where its loss cannot be avoided (called actual total loss), or (2) where the cost of repairing the damage exceeds its value (called constructive total loss). The insured party can still claim full settlement from the insurer (who becomes the owner of the abandoned property), after serving the notice of abandonment subject to the conditions of the insurance policy. Most non-marine insurance policies (such as homeowners insurance policy), however, specifically prohibit abandonment of the insured property under any circumstance.

  2. General: Voluntary disclaim of a right or interest (without transferring it to anyone else) in a property, accompanied by a clear act of abandoning that property. Such acts include continuous lack of use and/or maintenance, and failure to pay property taxes. The abandoned property may then be claimed by an occupier (see adverse possession) or may be appropriated by the state. However, obligations (debts, liens, taxes) associated with a property are not discharged when it is abandoned and remain the liability of the owner.

  3. The action or fact of abandoning or being abandoned.

  4. Accounting: Donation or voluntary disposal of a business asset where it is cheaper to abandon the asset than to restore or salvage it. The book value of an abandoned asset is written off as a loss.

  5. An abandonment option in a contract allows either party to leave the contract before fulfilling obligations. Neither party incurs penalties for withdrawing from the contract. For example, when a worker withdraws from an employment contract containing an abandonment clause, the employer cannot contest the resignation.

  6. Futures: Expiration of an option instead of its exercise or sale.

  7. Abandonment is the act of surrendering a claim to, or interest in, a particular asset. In securities markets, abandonment is the permitted withdrawal from a forward contract that is made for the purchase of deliverable securities. For instance, in some cases an options contract may not be worthwhile or profitable to exercise, so the purchaser of the option lets it expire without being exercised. In real estate, abandonment is surrendering claim to a lease agreement by a tenant or assignee.

Synonyms of Abandonment

Desertion, Neglect, Stranding

How to use Abandonment in a sentence?

  1. Sara has fear of abandonment , her father left her in the mall for three hours when she was only five years of age.
  2. Abandonment is to surrender a claim to or interest in a property or asset.
  3. She had a feeling of utter abandonment and loneliness.
  4. Abandonment may be permitted or forbidden for a given case as spelled out in the contract or agreement pertaining to the transaction or claim.
  5. For property to be legally abandoned the owner must clearly show they have given up their rights to the property and also show that they intentionally and knowingly do so.
  6. I felt that Charlie was still dealing with abandonment issues, since his mother and father left him when he was a young boy.
  7. Unfortunately our team recommended an abandonment of the asset at this point because it became more of a liability for us.

Meaning of Abandonment & Abandonment Definition