Business, Legal & Accounting Glossary

Definition: Overreaching

Quick Summary of Overreaching

The legal process by which the interest in an asset is converted into a corresponding interest in another asset.

For example, interest in a real property converted into an interest in the amount realised from its sale.

Full Definition of Overreaching

If an Estate in land is subject to a Trust, the purchaser of the estate will be bound to give effect to the beneficiaries’ interests if he has, or should have, notice of then (see: Doctrine of notice).

This will generally be very unfortunate for a purchaser.

Under s.2 of the Law Of Property Act (1925), the purchaser escapes the beneficiaries’ claims if he pays the money to two trustees or a trust corporation. This is ‘overreaching’; the beneficiaries interests are said to be ‘overreached’. It has been suggested that overreaching gives too much power to the purchaser, at the expense of the beneficiaries but, despite the efforts of the Law Commission, it remains in effect.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Overreaching. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 08, 2020 https://payrollheaven.com/define/overreaching/.
Chicago Manual of Style (CMS):
Overreaching. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/overreaching/ (accessed: July 08, 2020).
American Psychological Association (APA):
Overreaching. PayrollHeaven.com. Retrieved July 08, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/overreaching/

Definition Sources

Definitions for Overreaching are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th May, 2020 | 0 Views.