Contract Glossary
Acceleration Clause
Definition
A contract provision that makes the entire remaining balance due immediately if certain conditions are triggered, usually a missed payment or other default. In plain English: mess up once, and everything you owe comes due at once.
In Practice
You'll see acceleration clauses in leases, loan agreements, and licensing deals with installment payments. Say you're paying $2,000/month on a commercial lease and you miss two payments. An acceleration clause lets the landlord demand the full remaining balance, potentially $48,000, all at once instead of waiting for monthly payments.
Common in these contract types
Related terms
Related contract clauses
Frequently asked questions
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