Obsolescence - Definition - Law Dictionary Home Dictionary Definition obsolescence

obsolescence

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: a loss in the utility or value of property that results over time from intrinsic limitations (as outmoded facilities) or external circumstances NOTE: Obsolescence is usually distinguished from depreciation and physical deterioration.

eco·nom·ic obsolescence
: obsolescence that results from external factors (as location) that render a property obsolete, no longer competitive, unattractive to purchasers or investors, or of decreasing usefulness [claimed that the appraisal failed to account for economic obsolescence resulting from an adjacent waste facility]

func·tion·al obsolescence
[fək-shə-nəl-]
: obsolescence deriving from a lack of adequate or appropriate equipment, space, or design