# The term forfeit, fine, or conscience money is used to refer to a payment made by one party to another in order to reserve the right to withdraw from a contract

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- Post ID: 594902
- Modified: 2023-07-25T21:12:06+00:00
- Language: en

## Definition

Compensation paid by one contracting party to the other in order to reserve the right to withdraw from the contract; also called conversion money. It corresponds broadly to the premium in speculative transactions. - Payment to make good a wrong; in particular also said for a voluntary or by the tax authority determined additional payment in case of tax evasion (money paid willingly to compensate for dishonesty, as well as money paid by assessment of tax authority for taxes formerly evaded). - See deposit, distance money, option transaction, premium transaction, speculation. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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