Economy

What is refund? »Its definition and meaning

Anonim

This word refers to the act of giving something back to someone. It is a process that is based on the right of possession of a certain person with respect to a certain tangible or intangible good that was delivered for some type of specific purpose. That is to say; It is the return of what was delivered in a specified time and for personal reasons is returned to its place of origin or origin.

From the financial point of view, the yield consists of the delivery of a capital to a creditor who had granted it to obtain an interest; therefore, a circumstance of this characteristic is considered to be resolved when the total amount (principal and corresponding interest) is restored, unless a negotiation and an agreement between the parties establishes something different. Return can be understood as the restitution of something to its previous state. If a person proposes to restore a wooden door, it could be said that they will try to restore this door to its former glory. In this way, the door will return, as far as possible, to the state before it was damaged.

If we leave an item for someone to use temporarily, we await their return. We have done a favor and this implies that there has to be a refund, the moment when what was given on a certain date is received again.

The return mechanism also appears in the relationship between individuals and banks. Banks lend money and the amount must be repaid with a surcharge of some interest. It is a contractual agreement, which specifies the conditions and terms.