The bringing to an end of a legal right or interest, usually a proprietary interest. Forfeiture generally occurs where one party exercises a legal right that results in a second party forfeiting, or losing, a right or interest. In some cases, where the right or interest has been lost due to unconscientious conduct, equity can provide a remedy in the form of relief against forfeiture.

In a property law context, the bringing to an end (forfeit) of a lease by the landlord, following a breach of covenant by the tenant, exercised by peaceably re-entering the demised premises or commencing proceedings for possession of the demised premises. The landlord's actions may be subject to a claim for relief against forfeiture by the tenant or its mortgagee. For a more detail discussion, see Practice note, Termination and forfeiture of leases.

In a corporate law context, a shareholder may lose (or forfeit) its rights and interests in shares if the shareholder fails to comply with the terms under which the shares were issued. For example, shares may be forfeited if:

A company may, by resolution passed at a general meeting, cancel shares that have been forfeited under the terms on which the shares are on issue (section 258D, Corporations Act 2001 (Cth)). For an example of a forfeiture provision in a constitution for a proprietary company, see Standard document, Constitution for a proprietary company limited by shares: clause 3.4.