Lapse


Lapse
The cessation of a privilege, right or policy due to time or inaction. A lapse of a privilege due to inaction occurs when the party that is to receive the benefit does not fulfill the conditions or requirements set forth by a contract or agreement.

When a policy lapses, it usually occurs because one party fails to act on its obligations or one of the terms on the policy is breached. For example, an insurance policy will lapse if the holder does not pay the premiums. The right given by an options contract will lapse when the option reaches maturity, at which time the holder will no longer possess the right to buy or sell the underlying asset.


Investment dictionary. . 2012.

Synonyms:

Look at other dictionaries:

  • lapse — 1 / laps/ n: a termination or failure due to events, neglect, or time: as a: the failure of a bequest (as because the intended recipient dies before the testator) compare anti lapse statute b: the termination of an insurance policy because of… …   Law dictionary

  • lapse — n 1 slip, *error, mistake, blunder, faux pas, bull, howler, boner Analogous words: *offense, sin, vice, crime: *fault, failing, frailty, foible: transgression, *breach, violation, trespass 2 relapse, backsliding (see under LAPSE vb) …   New Dictionary of Synonyms

  • Lapse — (l[a^]ps), n. [L. lapsus, fr. labi, p. p. lapsus, to slide, to fall: cf. F. laps. See {Sleep}.] 1. A gliding, slipping, or gradual falling; an unobserved or imperceptible progress or passing away,; restricted usually to immaterial things, or to… …   The Collaborative International Dictionary of English

  • Lapse — Lapse, v. i. [imp. & p. p. {Lapsed}; p. pr. & vb. n. {Lapsing}.] 1. To pass slowly and smoothly downward, backward, or away; to slip downward, backward, or away; to glide; mostly restricted to figurative uses. [1913 Webster] A tendency to lapse… …   The Collaborative International Dictionary of English

  • lapse — [n1] mistake blunder, breach, bungle, crime, error, failing, failure, fault, flub, foible, frailty, gaff, goof, goof up*, indiscretion, miscue, negligence, offense, omission, oversight, screw up*, sin, slip, slip up, transgression, trespass,… …   New thesaurus

  • Lapse — Lapse, v. t. 1. To let slip; to permit to devolve on another; to allow to pass. [1913 Webster] An appeal may be deserted by the appellant s lapsing the term of law. Ayliffe. [1913 Webster] 2. To surprise in a fault or error; hence, to surprise or …   The Collaborative International Dictionary of English

  • lapse — ► NOUN 1) a brief failure of concentration, memory, or judgement. 2) a decline from previously high standards. 3) an interval of time. 4) Law the termination of a right or privilege through disuse or failure to follow appropriate procedures. ►… …   English terms dictionary

  • lapse — [laps] n. [L lapsus, a fall: see LAP1] 1. a slip of the tongue, pen, or memory; small error; fault 2. a) a falling away from a moral standard; moral slip b) a falling or slipping into a lower or worse condition, esp. for a short time 3 …   English World dictionary

  • lapse — relapse …   Dictionnaire des rimes

  • lapse — ▪ I. lapse lapse 1 [læps] verb [intransitive] 1. COMMERCE if a contract, agreement, or offer lapses, it ends because an agreed time limit has passed: • The customer has the right to exercise the option or allow the option to lapse. • There are… …   Financial and business terms

  • lapse — lapse1 [læps] n [Date: 1300 1400; : Latin; Origin: lapsus, from labi to slip ] 1.) a short period of time during which you fail to do something well or properly, often caused by not being careful momentary/temporary/occasional etc lapse ▪ Despite …   Dictionary of contemporary English


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