When hearing the term alienation, many people tend to think about displacement, loneliness, and a lack of belonging. In the legal world, however, the concept has a more specific meaning.
In the context of business law, alienation refers to the disposal, transfer, or relinquishment of title or ownership of some property or asset. Essentially, it involves the permanent move of a right from one person to another. In other words, the previous possessor of the right no longer has it in their possession.
A common example of alienation that we may see in the business world is the buying and selling of real estate. When an individual, business, or other entity purchases real estate, they are signing off on the title of that property and transferring ownership from the previous owner to them.
Understanding the Legal Implications of Alienation
Alienation can also come up in regards to investments, stocks, bonds, and other financial contracts. An individual may sign off on the title of an investment to another person, or to a brokerage that is managing the investment. Alienation can be voluntary or involuntary, depending on the terms of the contract.
It is important to be aware of the legal implications of alienation and how it can affect both you and the other parties involved. Always pay attention to the terms of investment and other contracts that involve alienation, and speak to an experienced lawyer if you have any questions or concerns.