What is ANNUITY?

A yearly sum stipulated to be paid to another in fee, or for life, or years, and chargeable ohly on the person of the grantor. Co. Litt. ‘1446. An annuity is different from a rent-charge, with which it is sometimes coufouuded, the annuity being chargeable on the person merely, and so far personalty; while a rentcharge is something reserved out of realty, or fixed as a burden upon an estate in land. 2 Bl. Comm. 40; Rolle, Abr. 220; Ilorton v. Cook, 10 Watts (Pa.) 127, 30 Am. Dec. 151. The contract of annuity is that by which one party delivers to another a sum of money, and agrees not to reclaim it so long as the receiver pays the rent agreed upon. This annuity may be either perpetual or for life. Civ. Code La. arts. 2793, 2794. The name of an action, now disused, (L. I.at. brcrv de annuo redditu,) which lay for the recovery of an annuity. Reg. Orig. 1586; Bract, l’ol. 2036; 1 Tidd, Tr. 3.

More On This Topic

Link to This Definition
Did you find this definition of ANNUITY helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary