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Simple English definitions for legal terms
refund
Read a random definition: constructive abandonment
A quick definition of refund:
A refund is when someone gets their money back because they paid too much. This can happen when someone overestimates how much tax they owe or when their employer takes too much money out of their paycheck. Refund can also mean the act of replacing old securities with new ones.
A more thorough explanation:
Definition: Refund is the return of money to a person who has paid more than what was required or owed. This can happen when a person overestimates their tax liability or when an employer withholds too much tax from their earnings.
Examples:
- When John filed his tax return, he realized that he had overpaid his taxes. The government issued him a refund of $500.
- Mary bought a dress online, but it didn't fit her. She returned the dress and received a refund of the purchase price.
- Bob refinanced his mortgage by replacing his old loan with a new one. The new loan had a lower interest rate, which resulted in a refund of the excess interest he had paid on the old loan.
The examples illustrate how a refund is the return of money that was paid in excess. In the first example, John paid more taxes than he owed, so he received a refund. In the second example, Mary paid for a dress that she returned, so she received a refund of the purchase price. In the third example, Bob paid excess interest on his old mortgage, so he received a refund of the excess amount when he refinanced.