Event of default Definition

GLOSSARY

Published by a UU��ֱ�� Commercial expert

What does Event of default mean?

The contractually specified reason or event that allows the non-defaulting party to end the agreement.

An event of default is an event that is set out in a commercial contract, which gives the non-defaulting party the right to terminate the agreement. It is commonly used in finance transactions such as loan agreements or debt instruments. Examples of events of default include non-payment of interest, breach of covenant or insolvency.

Commercial

The contractually specified reason or event that allows the non-defaulting party to end the agreement.

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