Relating to or causing the termination or dissolution of a contract, agreement, or legal obligation. A resolutory clause, for example, stipulates conditions under which an agreement can be nullified. This term often suggests a decisive and final action that brings an existing arrangement to an end. It contrasts with actions that might modify or suspend, but not wholly cancel, existing commitments. The emphasis is on the power to resolve and the irreversible nature of that resolution. It's typically used in legal and financial contexts.
Resolutory meaning with examples
- The contract contained a resolutory clause, granting the company the right to terminate the agreement if the specified performance standards were not met by the vendor within a given time frame. This provision aimed to ensure accountability and project success.
- Due to significant breaches, the court declared the lease resolutory. The tenants were ordered to vacate the property, effectively ending their tenancy rights. The judgement reflected the severity of the violations.
- The financier invoked the resolutory powers outlined in the bond indenture due to the borrower's repeated failure to service their debt obligations, beginning the liquidation proceedings.
- A resolutory condition was attached to the inheritance, stating the bequest would be revoked if the heir engaged in any activity detrimental to the family name, thus allowing a clawback.
- The shareholders’ agreement included a resolutory trigger for any instance of unethical dealings and breaches by the other party, giving the remaining members power over the future.