cognovit clause

Definition of "cognovit clause"
  1. A section within an agreement where one party allows a judgment to be entered against them if they breach or default on their obligations
How to use "cognovit clause" in a sentence
  1. The borrower agreed to include a cognovit clause in the loan agreement, giving the lender the right to enter judgment against him in case of default.
  2. The use of cognovit clause is disputed in some jurisdictions due to its potentially harsh consequences for the admitting party.
  3. In case of non-payment by the tenant, the landlord may take action based on the cognovit clause in the lease agreement.

Provide Feedback
Browse Our Legal Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z