Default

Revision as of 16:32, 6 February 2008 by A Chiesa (Talk | contribs)

(diff) ←Older revision | Current revision (diff) | Newer revision→ (diff)

Definition of "Default"

Generally, failure to fulfill an act or obligation.
In lending, when a borrower has not met its legal obligations according to a debt contract he or she is in default. For example, a borrower defaults on a loan if he or she fails to make one or more scheduled payments.
In leasing, when a tenant fails to meet its obligations under the lease. For example, the tenant defaults if he or she does not pay the rent when it is due.