Also known as:fail to meet obligations · failing to meet obligations · failed to meet obligations · nonperformance · default
Written by attorneys · grounded in primary & secondary sources — see below
A party's omission to fulfill duties imposed by contract, statute, or other legal obligation. The omission triggers remedies such as foreclosure, acceleration, damages, or entry of default.
Sources & Authorities
How it applies
Common Examples
6
Mortgage Default Triggers Foreclosure
Felicia Fuentes borrowed from Frontier Capital and pledged her home as security under a mortgage. When Felicia missed three monthly payments, Frontier treated the mortgage as security for the debt and initiated foreclosure proceedings to satisfy the unpaid obligation.
Defendant Fails to Appear
Fairview Manufacturing sued Finn Fletcher for breach of a supply contract. Finn received proper service but filed no answer or motion within the required time. The clerk therefore entered Finn's default on the record.
Landlord Default Causes Tenant Loss
Frederick Ferguson leased space from Foxfire Biotech. Foxfire failed to repair the HVAC system as required by the lease. Frederick had already spent funds on temporary climate control that Foxfire could have foreseen at signing, so he recovered that loss as damages.
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Cases
Statutes
Federal Rules
Uniform Acts
Common Law
Restatements
Dictionaries
Default Prompts Acceleration
Fumiko Fujimoto financed equipment through Ferrum Metals under a note secured by a mortgage on her warehouse. After Fumiko missed an installment payment, Ferrum exercised its acceleration clause and declared the entire remaining balance immediately due.
Default Judgment Limited by Pleadings
Felipe Figueroa sued Floyd Franklin for $75,000 on a promissory note. Floyd failed to respond and a default was entered. The court awarded only the $75,000 demanded in the complaint and refused to add unpleaded interest.
Tenant Incurs Substitute Costs
Fumiko Fujimoto leased manufacturing space from Frontier Capital. Frontier failed to maintain the roof, forcing Fumiko to rent temporary facilities while the default continued. She recovered the reasonable extra rental expense under the lease-damage formula.
Common questions
Frequently Asked
3
What remedies follow when a mortgagor fails to meet payment obligations?+
The mortgagee may accelerate the debt and foreclose on the real property pledged as security. Acceleration and foreclosure are available once default occurs under the mortgage or note.
When does failure to plead or defend result in entry of default?+
Under Rule 55(a), the clerk must enter default when a party against whom affirmative relief is sought has failed to plead or otherwise defend and that failure is shown by affidavit or otherwise.
What damages may a tenant recover when a landlord fails to meet lease obligations?+
Damages may include reasonable expenditures the tenant made before the default that the landlord could have foreseen, plus reasonable additional costs of substituted premises incurred while the default continues.
384 U.S. 436 (1966)Evidence
…requiring production of an arrested person before a commissioner "without unnecessary delay" and excluding evidence obtained in default of that statutory obligation, were nonetheless responsive to the same considerations of Fifth Amendment policy that unavoidably face us now as to the States. In McNabb , 318 U. S., at…
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