Forfeiture, << FAWR fuh chuhr, >> is a legal punishment or penalty by which a person who is guilty of wrongdoing or who has breached a contract or condition loses some right or possession. Forfeiture can result from either criminal or civil violations. People who drive too fast may have their licenses taken away and thus forfeit the right to drive. A corporation may forfeit its charter if it abuses its privileges. Ordinarily, in the United States, forfeitures of this type can be made only by court action or by administrative action which is later subject to review by a court. Criminal forfeiture is normally used to recover the profits, money, or property that was acquired through criminal activity. Civil, or contractual, forfeiture may occur when a person fails to perform certain duties required under a contract. For example, if a person fails to make payment for an automobile purchased on credit, he or she may forfeit ownership of the automobile.
