Default

Definition: Default is a failure to perform an obligation when it is due under an agreement or applicable law.

Example

A borrower does not make a required loan payment, or a buyer fails to perform a required purchase-contract obligation.

Keep the distinction clear

Default is the failure itself. Foreclosure, damages, cancellation, or another remedy does not automatically follow in the same way in every situation; notice and cure provisions may matter.

Related terms

Contract · Liquidated Damages · Specific Performance

Keep studying

Valid, Void, Voidable, and Unenforceable Contracts

References: Cornell LII: default

Pronunciation (US): dih-FAWLT (capitals show stress)

Pronunciation reference: Merriam-Webster