Perpetuity in a contract means that condition will apply forever.
What Does Perpetuity Mean In A Contract?
The annuity that does not have a definite end is known as perpetuity, the interest that is paid by a savings account is a type of perpetuity because it pays the interest as long as there is money in the account. A bond on the other hand does not do the same because the semi annual coupon payments it holds will expire as soon as the bond matures.
Perpetuity can also be known as the annuity period during which the periodic payments begin on a particular date and then continue indefinitely. This is term is also known as "Perpetual Annuity"
Perpetuity is finite because the receipts that is anticipated far in the future and holds an extremely low present value. And in addition to that the principal is never repaid.
Perpetuity can also be known as the annuity period during which the periodic payments begin on a particular date and then continue indefinitely. This is term is also known as "Perpetual Annuity"
Perpetuity is finite because the receipts that is anticipated far in the future and holds an extremely low present value. And in addition to that the principal is never repaid.
No contract can be in perpetuity