A year ago, Lawrence purchased $6500 worth of furniture on time. In April he failed to make his payment and suddenly discovered that the entire balance of the loan was due. Unless there is a provincial stature to limit the use of this kind of term, Lawrence is caught by

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An acceleration clause requires the borrower to pay back the entire loan immediately if they miss a payment or violate any other terms of the loan agreement. In this case, Lawrence missed a payment and discovered that the entire balance of the loan was due, indicating the presence of an acceleration clause in the loan agreement.

A Year Ago, Lawrence Purchased $6500 Worth of Furniture on Time