Legal Definitions - make default

To "make default" means to fail to fulfill a legal or contractual obligation, or for a court or another party to formally declare that such a failure has occurred. It signifies a breach of duty or a missed requirement, often leading to specific legal consequences for the party that has failed to meet its obligations.

Here are a few examples to illustrate this concept:

• Missed Loan Payments: Imagine a small business owner who takes out a loan to expand their operations. The loan agreement specifies that monthly payments must be made by the 15th of each month. If the business owner repeatedly fails to make these payments on time, they are said to make default on their loan. The bank, as the lender, would then formally declare the loan in default, which could trigger penalties, accelerate the repayment schedule, or even lead to the seizure of collateral.
• Failure to Respond to a Lawsuit: Suppose an individual is sued for breach of contract and receives a summons, which is a formal notice requiring them to respond to the court within a specific number of days. If this individual ignores the summons and fails to file any response by the deadline, they are said to make default. The party who filed the lawsuit can then ask the court to enter a "default judgment" against the non-responsive individual, meaning the court may rule in favor of the plaintiff without a trial.
• Unfulfilled Contractual Obligations: Consider a construction company hired to build an addition to a house. The contract specifies that the foundation must be completed by a certain date. If the construction company fails to complete the foundation by that deadline due to negligence or lack of resources, they are said to make default on their contractual obligations. The homeowner could then have legal grounds to terminate the contract, seek damages, or hire another contractor to finish the work, potentially at the original company's expense.