In trade and contract law, a drop dead date is a provision added to a legal or trade act, such as a contract or a court order. Such a provision sets a last-delay date (hence the name drop dead date) past which certain consequences will automatically follow, such as cancelling the contract, charging a late fee, or entering a judgment.
In contract law, a typical drop dead date example is the contract for the baking of a birthday cake, where it is implied that a late delivery will constitute a material breach.
In German and Swiss Law, this is called a "Fixgeschäft".
Notes
- Gotts, Ilene Knable (2006). The Merger Review Process: A Step-by-step Guide to U.S. and Foreign Merger Review. American Bar Association. p. 84. ISBN 9781590316528. Retrieved 20 September 2017.
- "drop dead date". LII / Legal Information Institute. Retrieved 2024-04-23.
- "Drop Dead Date Law and Legal Definition". US Legal. Retrieved 2024-04-25.
- "Fixgeschäft". auftrag.at. Retrieved 2024-04-26.
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