Meaning

noun something that is lost or surrendered as a penalty

noun a penalty for a fault or mistake that involves losing or giving up something

noun the act of losing or surrendering something as a penalty for a mistake or fault or failure to perform etc.

originFrom Middle English forfait from ca. 1300, from Old French forfait (“crime”), originally the past participle of forfaire (“to transgress”), and Medieval Latin foris factum. During the 15th century, the sense shifted from the crime to the penalty for the crime.

Etymology from Wiktionary, CC BY-SA 3.0