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What is a default clause?

A default clause is a provision in a legal contract that states what will happen if either party in a contract defaults or fails to hold up their end of the agreement.

What is an event of default clause?

Events of default are common in loan agreements or debt instruments. An event of default entitles the lender to cancel the facility and/or declare all amounts owing by the borrower to be immediately due and payable.

What does it mean to remedy default?

A default is a failure to comply with a provision in the lease. Curing or remedying the default means correcting the failure or omission. A common example is a failure to pay the rent on time.

What are the consequences of a default?

-Your federal and state income tax refunds may be withheld and applied to your debt. This is known as a tax offset. -Your credit score will be damaged. -You may have difficulty qualifying for credit cards, car loans, or mortgages, and will be charged much higher interest rates.

What does it mean to default on a contract?

A default is a bdocHub of a contract or agreement. It occurs when one party fails to uphold their contractual duties. An event of default is a specific event or occurrence that allows the non-defaulting party the ability to terminate the contract or accelerate the debt owed by the defaulting party.

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What is a default in contract drafting?

Contract Default means the failure by a party to a contractual agreement to perform or meet contract terms and conditions.

Is default the same as termination?

Termination means ending the lease contract, which can occur at the end date of the lease, or earlier, depending on how the lease is written. Default is an omission or failure by either Party to meet a provision of the lease.

What does default mean in legal terms?

A default judgment occurs when the defendant in a legal case fails to respond to a court summons or does not appear in court. If this occurs, a court may rule in favor of the plaintiff by default.

What does default mean in a lease?

A default is a failure to comply with a provision in the lease. Curing or remedying the default means correcting the failure or omission. A common example is a failure to pay the rent on time.

What is a default clause?

A default clause is a provision in a legal contract that states what will happen if either party in a contract defaults or fails to hold up their end of the agreement.

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