Defeasance can be best described as an annulment or abrogation. This term is used more in property law where it can mean terminating an estate or status with a conditional limitation. In other words, defeasance means a condition in which fulfillment of that specific condition will result in the voiding of the deed. A contractual proviso containing such a condition would be called a defeasance clause.
[Last updated in March of 2022 by the Wex Definitions Team]