insecurity clause

Definition of "insecurity clause"
  1. A provision in a contract that permits a party who considers themselves to be at risk to demand immediate payment or fulfillment, or to ask for additional security
How to use "insecurity clause" in a sentence
  1. The buyer relied on the insecurity clause to demand full payment after discerning the risk of default by the seller.
  2. When the lender started doubting the borrower's capability to repay, they activated the insecurity clause in their contract.
  3. The company might need to invoke the insecurity clause if they perceive a significant financial threat.

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