Default — in plain language

Plain language

a failure to do what you are legally required to do, such as missing a payment, breaking a contract rule, or failing to show up in court

• failure to perform
• breaking the agreement
• missing an obligation
• non-performance

What to watch for

• Non-lawyers often confuse the legal 'default' with the computer 'default setting.' Always ensure the context makes it clear that a legal obligation has been broken.
• A 'default' is not always a 'breach.' While they are similar, some contracts distinguish between a 'default' (the event) and a 'breach' (the legal consequence). Do not treat them as interchangeable without checking the specific contract.
• People often assume 'default' only applies to missing a payment. It also applies to failing to perform any other duty required by a contract, such as maintaining insurance or providing notice.

Distinguishing from Similar Terms. "Default" is often used interchangeably with "breach," but they are not always the same. A "default" is the act of failing to perform (like missing a payment). A "breach" is the legal status that occurs once that failure is recognized. In many contracts, a "default" is a specific event that triggers a "cure period," during which the person in default has a chance to fix the problem before it becomes a full-blown breach.

Common Misunderstandings by Non-Lawyers.

• "Default means I'm bankrupt." (No — you can be in default on a single payment or a minor contract rule without being bankrupt.)
• "If I'm in default, the contract is automatically canceled." (No — most contracts require the other party to send a notice or follow specific steps before the contract can be canceled.)
• "Default only happens if I don't pay money." (No — you can be in default for failing to provide information, failing to keep property in good repair, or failing to follow other non-monetary rules.)

Legal definition

A failure to fulfill a legal duty or promise. In a contract, it means you have failed to do something you agreed to do, such as making a payment on time or following a specific rule in the agreement. In court, it often refers to failing to respond to a lawsuit or failing to appear at a scheduled hearing.

Meanings by context

everyday English: The standard setting or choice that happens automatically if you don't pick something else.

technical default: Breaking a rule in the contract that isn't about money, like failing to send a required document.

default judgment: A court ruling against you because you failed to show up or respond to a lawsuit.

Examples

Where you'll see it

• loan agreements
• lease agreements
• court filings
• commercial contracts

Related terms

• breach
• non-performance
• remedy
• default judgment
• cure period

Word details

Pronunciation

dee-FAULT

Part of speech

noun

Origin

Anglo-French — from 'defaillir' — to fail, be wanting

Domains

contract law, debtor-creditor law, real property, civil procedure

Frequency

very common

Formality

moderate