Definition
Defeasance is the legal process of discharging a debt obligation before its maturity date. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
Two cofounders disagree until they define Defeasance. Once they agree it means “Legal process of discharging a debt obligation before its maturity date”, the argument becomes a decision.
Common mistake
Using Defeasance as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Decline stage of product life cycle
Phase where product sales and market share begin to decrease significantly.
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Decremental analysis
Decision-making approach focusing on changes in costs and benefits.
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Defined benefit plan
Retirement plan where benefits are predetermined based on salary and years of service.
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Defined contribution plan
Retirement plan where contributions are specified but benefits depend on investment performance.
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