The term forfeit refers to losing something as a penalty (usually property or rights) involuntarily due to a violation of law. The violation of law may include an offense, error, breach of contract, crime, neglect of duty, etc.
Examples of forfeit can include losing a driver’s license when the driver is found violating too many traffic laws or drunk driving. A person carrying illegal drugs or substances in his or her car may also have to forfeit the car being used in the delivery.