A clause in a contract allowing one party to
abandon (or forfeit ownership to) a
property and thereby transfer ownership to another party, assuming the second party accepts. Abandonment and salvage clauses are most common in
insurance covering goods being shipped overseas. That is, if the ship sinks and the owner does not wish to attempt to recover the goods, he may declare them abandoned, which would transfer ownership to his
insurance company (though the insurance company may refuse to accept ownership). It is also present in some
homeowner's insurance contracts. It should not be confused with an
abandonment option.