What is a 'Lock-in period', 'Bipartite Lease' and "Suit for Quantum Meruit"?  

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justaguide | College Teacher | (Level 2) Distinguished Educator

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When money is borrowed from an institution it usually has a minimum period for which the person borrowing the funds has to pay an interest. This is called the lock-in period. If the borrower desires to repay the loaned amount within the lock-in period there is an extra charge levied. The lock in period is created so that the lender can gain some amount of money that would at least compensate it for the due diligence performed when the loan was issued.

A bipartite lease is one where the person providing the asset that is being leased and the lessor are the same. An example could be a manufacturer of a crane leasing their cranes to a mining firm.

Quantum meruit is a phrase in Latin which means "what one has earned." It is used in cases where a party has rendered services for another. In case a contract is not present or is mutually annulled, the party that has completed a part of the obligations should receive a reasonable compensation for the same.

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