Dishonor Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Dishonor, written in plain English, along with examples of how it is used.
What is Dishonor?
v. The refusal to pay the amount due on a promissory note or pay a check’s face value.
History and Meaning of Dishonor
Dishonor is a legal term that refers to the act of refusing to pay a promissory note or check that is due. This can occur when a check is returned by the bank for insufficient funds or when the person who wrote the check cancels it after it has been issued. In general, dishonor is viewed as being both dishonest and illegal, and there can be serious legal consequences for those who engage in this behavior.
Examples of Dishonor
John wrote a check to his landlord to pay for his rent, but the check bounced due to insufficient funds. The landlord tried several times to deposit the check, but it was repeatedly returned by the bank. John was ultimately charged with dishonoring his obligations under the lease agreement.
Mary issued a promissory note to a bank, agreeing to repay a debt with interest over a specified period of time. However, Mary fell behind on her payments and ultimately stopped making payments altogether. The bank claimed that Mary had dishonored the promissory note and filed a lawsuit to recover the outstanding debt.
Sarah wrote a check to her sister to reimburse her for a loan that she had provided. However, Sarah later canceled the check for personal reasons, and her sister was unable to collect the funds she was owed. Sarah was accused of dishonoring her agreement with her sister and faced legal consequences as a result.
Legal Terms Similar to Dishonor
Default - a legal term that refers to the failure to satisfy a financial obligation or fulfill a contractual agreement.
Fraud - a legal term that refers to the use of deception or misrepresentation for the purpose of gaining an unfair advantage or causing harm to another party.
Breach of Contract - a legal term that refers to the failure to meet the terms of a written or verbal agreement, which can result in legal consequences such as financial penalties or court-ordered damages.