What does abandonment clause mean?

abandonment clause meaning in Law Dictionary

The abandonment clause gives guaranteed functions the ability to forfeit damaged property in exchange for complete payment. Insurance firms just take ownership regarding the wrecked asset.

abandonment clause meaning in Business Dictionary

A statement in a contract that details consequences and outcomes that'll transpire in the event that one or both of the parties abandon their responsibility to complete the task. Usually the quantity of completed work is fond of another contractor as well as the party just who abandoned the job does not receive any compensation.