Definition of acceleration clause
Noun
acceleration clause (plural acceleration clauses)
- (law) a provision in a contract that makes all obligations to be performed under the contract due immediately upon a specific occurrence, such as a breach
Joe was mortified to learn that his failure to make a scheduled car payment triggered an acceleration clause requiring that the entire balance due on the car must be paid immediately.
References:
- Wiktionary. Published under the Creative Commons Attribution/Share-Alike License.
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