Acceleration clause

Acceleration clause – within the area of Law of Contracts, this is definition of a clause in a contract, stating that if installment is not made, or some other default or non-performance occurs (for example, if the debtor claims bankruptcy) towards creditors, then the total performance per the contract is fully due asap. The acceleration clause is a standard term, embedded in a money loan contract, where agreed that if the debtor misses one or two installments, then the creditor automatically receives the right to collect the entire amount of the debt immediately. See also .

See also “Law of Contracts”

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