Nonfeasance is a legal term referring to the failure to act, or neglect. It is when a government, organization or individual fails to carry out a legal obligation or duty. It is the opposite of misfeasance, which is the failure to carry out an action correctly. Oftentimes it is a serious offense with real life consequences.
Facts on Nonfeasance
According to a 2016 Supreme Court ruling, nonfeasance is not a punishable offence. The court held that ‘no one has a legal duty to rescue another in peril unless a relationship of proximity or public undertaking exists.’ This means that unless you are obligated to act, there is no actionable legal recourse.
Nonfeasance not only applies to governments and individuals, but also to businesses. A business may fail to act or carry out an obligation, thus leading to a breach of contract or negligence. These actions may have costly implications and the business may be liable for damages, thus causing a major financial loss.
The Cost of Nonfeasance
The financial repercussions of nonfeasance vary and can be extensive. All impacted parties should calculate all costs associated with the nonfeasance in question, including loss of sales, interest charges, legal fees, and other related costs. It’s important that all possible liabilities resulting from the nonfeasance are considered in order to minimize the financial burden of the situation.
For example, a business may fail to act on a contract in a timely fashion. This can result in the project being delayed and may incur additional costs for both the business and the client. The business may also be held liable for any penalties or compensation due to the contractual breach.
Conclusion
Nonfeasance is an act of negligence and can have serious, legal and financial repercussions. Organisations and individuals should always observe their obligations and ensure that all contractual obligations are met. Only with this commitment can organisations avoid the costly consequences of nonfeasance.