Legal Definitions - drop

Drop

In English law, the term "drop" refers to a situation where a preliminary court order, known as a rule nisi, is not formally adopted because the judges on the court panel are equally divided on the issue. Instead of being approved or rejected, the proposed order simply fails to proceed due to the tie vote.

• Example 1: An appellate court is reviewing a lower court's decision to issue a preliminary injunction preventing a company from continuing a particular business practice. The four judges on the appellate panel are split 2-2 on whether to uphold or overturn this preliminary injunction. Because no majority can be reached, the rule nisi to either confirm or reject the injunction is "dropped," meaning the appellate court takes no action on that specific preliminary order.

  This illustrates "drop" because the preliminary court order cannot be adopted due to the judges' tie vote, preventing it from moving forward.

• Example 2: In a specific legal proceeding, a party seeks a preliminary order (a rule nisi) requiring the opposing side to "show cause" why certain confidential documents should not be disclosed. The three-judge panel hearing the request is divided, with one judge recusing themselves and the remaining two judges disagreeing on whether to issue the order. As a result, the proposed order is "dropped," and the preliminary request for disclosure does not proceed.

  Here, the preliminary request for a court order is "dropped" because the court cannot achieve a majority decision to issue it.

Drop-Dead Date

A "drop-dead date" is a strictly enforced deadline in a contract or agreement by which a specific action or performance must occur. Failure to meet this date typically results in significant, often severe, consequences, such as the termination of the agreement, forfeiture of rights, or the imposition of penalties.

• Example 1: A real estate purchase agreement specifies that the buyer must complete all financing arrangements and close the sale of the property by November 15th. The contract explicitly states that if the closing does not happen by this date, the seller has the right to terminate the agreement and keep the buyer's earnest money deposit.

  November 15th is the "drop-dead date" because missing this specific deadline triggers a direct and significant consequence: the buyer could lose the property and their deposit.

• Example 2: A construction company enters into a contract to build a new wing for a hospital, with a "drop-dead date" of July 1st for substantial completion. The contract includes a clause stating that for every day past July 1st that the project is not substantially complete, the construction company will incur a substantial financial penalty, and the hospital can eventually terminate the contract if delays persist.

  July 1st is the "drop-dead date" because failing to meet it by even one day activates severe financial penalties and risks contract termination, emphasizing its critical importance.

• Example 3: In a legal settlement, a defendant agrees to pay a reduced settlement amount of $50,000 to the plaintiff, provided the payment is received by March 31st. The agreement stipulates that if the payment is not made by this "drop-dead date," the original judgment amount of $200,000 becomes immediately due and enforceable.

  March 31st functions as a "drop-dead date" because missing it results in a drastic negative consequence for the defendant: liability for a much larger sum.