An acceleration clause, in the
law of
contracts, is a term that fully matures the performance due from a party upon a breach of the contract. Such clauses are most prevalent in
mortgages and similar contracts to purchase
real estate in installments.Suppose, for example, the contract was for A to purchase
Blackacre from B for $100,000, to be paid in 5 monthly installments of $20,000. If A makes the first two payments, but fails to make the third payment, an acceleration clause would require that A must immediately pay B the entire balance of $60,000, or lose his right to purchase Blackacre (without getting a refund of his $40,000).
See more at Wikipedia.org...
clásula de aceleración - cláusula de una hipoteca o contrato fiduciario que acelera la deuda y la convierte en pagadera inmediatamente, si el prestatario incumple el pago a plazos u otra parte del convenio
Free Download Now!
