pattern of default
Definition
A pattern of default means someone has repeatedly failed to meet their obligations under a contract or loan agreement, not just once but multiple times over a period of time. Courts and lenders look at this repeated history of missed payments or broken promises as evidence that the problem is ongoing rather than a one-time mistake.
Example
If a tenant misses rent three months in a row, a landlord can point to that pattern of default as grounds to terminate the lease rather than giving the tenant another chance to catch up.
Watch Out
Even if each individual missed payment seems minor, the cumulative pattern can give the other party the legal right to end your contract entirely and pursue damages.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.