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Event of default: Difference between revisions
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{{a|glossary| | {{a|glossary| | ||
[[File:Default in our Stars.png|450px|thumb|center|Look, ''you'' try illustrating the idea of default.]] | [[File:Default in our Stars.png|450px|thumb|center|Look, ''you'' try illustrating the idea of default.]] | ||
}}Sometimes known as an [[enforcement event]], an [[event of default]] is an action a counterparty takes which justifies the innocent party terminating the contract ''under its terms'', [[close out|closing out]] open transactions, and raining down fiery hell on the wronger and its affiliates, directors, officers, employees, agents and delegates. | }}Sometimes known as an [[enforcement event]],<ref>Usually where [[security]] is involved.</ref> an [[event of default]] is an action a counterparty takes which justifies the innocent party terminating the contract ''under its terms'', [[close out|closing out]] open transactions, and raining down fiery hell on the wronger and its affiliates, directors, officers, employees, agents and delegates. | ||
It has a different consequence to a [[repudiatory breach|repudiatory, or fundamental, breach]] of contract, even though the two are largely the same, and a “repudiation of contract” may even be characterised as an [[event of default]]. | It has a different consequence to a [[repudiatory breach|repudiatory, or fundamental, breach]] of contract, even though the two are largely the same, and a “repudiation of contract” may even be characterised as an [[event of default]]. | ||