Drop-Dead Provision Law and Legal Definition
Drop dead provision is a provision in a contract or a court order which allows a party to take action without notice if the other party fails to perform certain acts. It sets the last date that an event can take place, or otherwise certain consequences will automatically follow, such as canceling a contract, taking property, or entering a judgment.
In bankruptcy proceedings, drop dead provisions permit creditors to receive relief from stay without further notice or hearing by the filing of an affidavit of default stating that the debtor is in default of the settlement order. [In re Lucas, 2007 Bankr. LEXIS 2704 (Bankr. D.S.C. Aug. 13, 2007)]
