insecurity clause
- 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
- The buyer relied on the insecurity clause to demand full payment after discerning the risk of default by the seller.
- When the lender started doubting the borrower's capability to repay, they activated the insecurity clause in their contract.
- The company might need to invoke the insecurity clause if they perceive a significant financial threat.
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