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DEFINITION of 'Malfeasance'. Malfeasance is an act of outright sabotage in which one party to a contract commits an act that causes intentional damage. A party that incurs damages by malfeasance is entitled to settlement through a civil lawsuit. Proving malfeasance in a court of law is often difficult, as the true definition is rarely agreed upon.
Whenever you see the prefix mal-, you know it's not good. Malfeasance is bad behavior, especially from officials or people who should know better. If nothing else, the mal- in malfeasance will alert you to the fact that something bad is going on. If you know French, fease-, faise- will ring a bell, as it often means to do..